Crop Insurance Today February 2012 - (Page 26)

TODAYcrop insurance STEP 5-TESTING THE CURRENT FARM Q:Will the current farm be feasible in the future? This is the fifth in a ten-part series of articles on “The Steps of Farm Business Planning.” The introductory article for the series was published in the November 2010 issue of Crop Insurance TODAY® and additional articles will be printed each quarter. 3), and set and prioritize your personal and business goals (Step 4). If the analysis indicates that the current farm does not need to be changed (and you are not interested in pursuing changes), Steps 6 and 7 of the planning process can be skipped. But if the analysis suggests that changes should be considered (or you are interested in exploring options), Steps 6 and 7 outline some thoughts on describing and evaluating By Dr. Laurence Crane, NCIS alternatives. The first sections of this step provide an overview of the analytical process. Subsequent sections address several issues that arise in completing the analysis and suggest actions that can be taken, based on the result of the analysis. Analytical Procedure The question to be answered by completing this step is whether the current An important part of planning is understanding what will happen if you don’t change anything. Evaluating the future performance of your current farm, based on your assumptions and expectations for the future, will help you to know if and when changes are needed. This evaluation will provide the base, or benchmark, on which to measure the effectiveness of potential changes. The object of this step is to determine whether the current farm operation will meet your goals in the future, or whether changes should be made to your current farm business. In the previous four steps you had the opportunity to describe your current farm operation (Step 1), identify your skills and interests (Step 2), specify your expectations about the future (Step 26 FEBRUARY 2012

Table of Contents for the Digital Edition of Crop Insurance Today February 2012

Isn't there an App for that?
Explaining the Costs of the Crop Insurance Program
NCIS Awards Two Scholarships
2012 Spring Update Conference
Commitee Sees Research First Hand
Trade Talk 2011
Retirements: Ben Latham and Steve Hams
In Memory of Patrick Flanagan
In Memory of Marx M. Mannberger
Step 5-Testing the Current Farm: Will the current farm be feasible in the future?
2011 Premiums: State Rankings
Insurable Crops: Locations & Plans

Crop Insurance Today February 2012