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Abstract
Large capital requirements needed
for many agricultural businesses to
operate result in many relying on
borrowed funds. Fixed repayment
commitments combined with a
leveraged financial condition and
volatile commodity prices result in
increased emphasis on managing
risks. Deterioration in the financial
condition of an agricultural business
is used to illustrate development of
a risk management plan by a farm
manager and his lender. The case
study approach is used to initiate
discussion, generate ideas from
readers, and provide an example that
can be used by those who teach farm
management, risk management, and/
or financial management.