To help you determine the financial risk of your pork operation, PurdueUniversity swine experts have constructed this financial-risk checklist. Take a look and think about your situation.

1. Have you had a recent insurance check-up for health, life, casualty, property, disability, long-term care and Medicare/Medicaid?

Yes  No

2. Is your disaster insurance coverage sufficient to replace losses in the event of a disaster? (Think about when it was last updated.)

Yes  No

3. Does your marketing plan cover your cash flow needs?

Yes  No

4. Do you use up-to-date financial accounting and control methods?

Yes  No

5. Are your financial ratios comparable to those of similar operations? (For example, is your current ratio – assets divided by liabilities – at or above 1.5?)

Yes  No

6. Is your asset turnover ratio above the average for your farm size?

Yes  No

7. Do you contact your lender at least once a month?

Yes  No

8. Have you calculated your breakeven cost of production in the last month? (Have you allowed for cost increases that tend to creep up?)

Yes  No

9. Are your financial projections based on accurate historical data? Yes  No

10. Do you have a long-term plan for capital expenditures?

Yes  No

11. Do you estimate the probability of success or failure of a new venture before investing?

Yes  No

12. Do you have a contingency   plan to deal with future risks?

Yes  No