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Learn more via the APPLIED RISK ANALYTICS series, covering the application of RightRisk Analytics available at: RightRisk.org/appliedriskanalytics.
PRODUCERS HAL AND MERNA GALL operate a diverse crop business. They have always believed their business to be profitable. However, like many other producers, they typically only consider their actual operating expenses and returns when assessing their financial situation. Similarly, they often prepare only the financial statements required by their financial institution, without completing regular analyses to identify areas for improvement or strengths within their operation. Hal and Merna have the primary goal of maintaining ownership of a profitable farm that can be passed down to the next generation. At the operational level, they aim for yield targets for each of their crop enterprises that exceed their historical averages but remain within achievable ranges. In their case, further analysis using financial statement information will help identify potential revenue shortfalls as well as profit-making opportunities.
