United States Department of Agriculture 

Risk Management Agency 

Risk Management

Checklist

Print out this checklist. Answer yes or no 

to the following questions. Review your 

answers with your family and/or your 

business team and employees. 

You may identify some risk exposure. 

On the other hand, you may find that you 

are protected against risk enough so that 

you have the resources to explore some 

new venture. 

If you do not know all the dates in the 

“Deadlines” section, you should contact 

your crop insurance agent for help. 

If you need assistance locating an 

agent, go to the agent locator at 

rma.usda.gov/tools/agent.html. 
Production 

______ 1. Have you recently evaluated your risk in the event of the loss of your crops? 

______ 2. Have you recently evaluated your risk in the event of the loss of your animals? 

______ 3. Have you investigated other alternative production methods and their consequences? 

______ 4. Do you have the necessary knowledge to consider an additional or alternative enterprise? 

______ 5. Is your crop insurance protection adequate to cover a severe crop loss? 

______ 6. Have you reviewed all of your crop insurance options with your agent? 

______ 7. Have you conducted a Strengths, Weaknesses, Opportunities, and Threats (SWOT) 

analysis for your operation? 

______ 8. Are you in an area capable of supporting irrigation? 

Marketing 

______ 1. Do you have a current, written marketing plan? 

______ 2. Have you coordinated your marketing plan with your goals and objectives and your 

financial and production plans? 

3. Managing marketing risks: 

______ a) Are you comfortable with your knowledge of marketing opportunities? 

______ b) Have you reviewed your marketing options within the past 6 months? 

______ c) Do you understand how crop insurance revenue guarantees can enhance 

marketing opportunities? 

Financial 

______ 1. Do you have a current business plan? 

______ 2. Have you planned for a best-case scenario and developed a plan for how additional 

income will be used? 

______ 3. Have you planned for a worst-case scenario and considered an alternative plan? 

______ 4. Do you know your cost of production? 

______ 5. Do you know your break-even costs? 

______ 6. Do you have the knowledge to create a balance sheet, cash flow, and income statements? 

______ 7. Do you have the knowledge to interpret important financial ratios? 

______ 8. What is your debt-to-asset ratio? 

______ 9. Is the growth of your net worth exceeding inflation? 

______10. Have you reviewed your ratio trends with your lender? 

11. Is your crop insurance protection adequate to: 

______ a) Repay current operating loans? 

______ b) Allow you to take advantage of marketing opportunities? 

______12. Have you reviewed your tax liability within the past 3 months to determine your 

tax strategies? 

______13. Have you investigated all of your potential financing options? 

______14. Have you investigated all available government programs? 

______15. Have you considered the trade-offs between maintaining your current investments 

(certificates of deposit/savings/etc.) and/or reinvesting in expanding your own operation? 

______16. Do you consult a financial management consultant, lender, accountant, insurance 

provider, or other professional when making major financial decisions? 

______17. Are you comfortable with your level of debt? 
Legal 

This list does not cover every legal risk exposure faced by farmers and ranchers, and is not meant

as legal advice. You should consult an attorney to review your legal risk exposure. 

______ 1. Is your will up to date? 

______ 2. Do you have a living will? 

______ 3. Do you have a farm transfer plan or exit strategy that has been reviewed within 

the past 3 years? 

______ 4. Have you recently reviewed your farm owner’s insurance policy? 

5. Have you recently evaluated your risk exposure to: 

______ a) Liability covering the public entering your property? 

______ b) Liability of direct marketing? 

______ c) Your State department of agriculture’s direct marketing regulations? 

______ d) Livestock breaking through fences? 

______ e) Environmental and pesticide issues? 

______ f) Land use issues with neighbors? 

______ 6. Do you understand the provisions of all of your contracts, leases, and loans? 

______ 7. Have you recently evaluated all the different business entity options for your operation? 

______ 8. Do you have a working relationship with your attorney and accountant and have 

you reviewed your goals and objectives with each? 

______ 9. Are you in compliance with such regulations as worker protection, pesticide use records, 

vehicle registrations, and necessary safety inspections? 

Human 

1. Is your personal insurance coverage current: 

______ a) Do you have adequate medical and disability insurance? 

______ b) Do you have adequate life insurance to cover your wishes and farm transfer 

at current values? 

______ 2. Have you calculated your risk exposure to employee accidents or dishonesty? 

______ 3. Have you provided all employees with comprehensive safety training? 

______ 4. Do you have an employee handbook? 

______ 5. Are your goals Specific, Measurable, Attainable, Reasonable, and Timed (SMART)? 

______ 6. Have you conveyed the goals and objectives of the business to all family members, 

business team, and employees? 

______ 7. Are your goals written? 

______ 8. Is everyone in your family (or on your team) employed to the full extent of his or her 

education, training, and experience? 

General 

______ 1. Do you have a confident relationship with your risk management advisors? 

______ 2. Do you have the knowledge to evaluate 

new technologies? 

______ 3. Are you planning for your children’s educational needs and are these savings protected? 

______ 4. Are your savings for retirement on course with your plans? 

______ 5. Do family members know the location of all important documents? 

______ 6. Do you have the knowledge and skills to assess all areas and levels of risk? 

______ 7. Are you constantly looking for ways to increase your profitability? 
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Crop, Revenue, and Livestock Insurance Deadlines 

If you do not know all the dates in this section, you should contact your crop insurance agent for help. 

______ 1. Do you know all critical dates and sign-up deadlines? 

2. Sales closing date — last date to apply for coverage is: 

3. Cancellation date — give notice if I do not want insurance next year: 

4. Production reporting date — actual production history must be reported by: 

5. Final planting date — if unable to plant, I must contact my agent by: 

6. Acreage reporting date — I must report my acreage planted to my agent by: 

7. Payment due date — interest charges will be incurred after: 

8. Final date to file notice of crop damage — any perceived damage must be reported 

no later than: 

9. End of insurance period — latest date of coverage for current year’s crop: 

10. Debt termination date — insurance coverage for next year will be canceled if 

payment is not made by: 

United States Department of Agriculture 

Risk Management Agency 

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, 

sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual's income is derived 

from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information 

(Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination write to USDA, Director, Office of Civil 

Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.