Midterm 2

Question 1

3 types of risk taker personalities

Answer 1

Risk Averse
Risk Neutral
Risk Loving

Question 2

Factor that affect willingness to take risks

Answer 2

Money
Debt
Health
Going into the unknown 
Family responsibilities

Question 3

Factors that affect ones ability to bear risk

Answer 3

Amount of equity/financial security

Cashflow commitments

Question 4

Sources of risk and uncertainty

Answer 4

Climate risks
Marketing/Price risk
Financial risk
Legal risk
 1. Liability 
 2. Business organization 
 3. Estate planning (will)
Personal risk

Question 5

Tools for mitigating production risk

Answer 5

Diversity
Insurance
Stable enterprises
Extra production capacity

Question 6

Tools for mitigating market/price risk

Answer 6

Spreading sales
Marketing plan
Hedging 
Marketing awareness 
Forward contracts
Flexibility

Question 7

Tools for mitigating financial risk

Answer 7

Interest rates-locking vs. Variable
Liquid reserves
Credit reserve
Owners equity
Self liquidating loans

Question 8

Tools for mitigating legal risks

Answer 8

Business organization vs. sole proprietorship vs. Corporation

Estate planning

Liability insurance

Question 9

Tools for mitigating personal risk

Answer 9

Life insurance
Health insurance
Safety
Backup management

Question 10

What can the money from ccga cash advance go to

Answer 10

Anything

Question 11

Who can apply for a ccga cash advance

Answer 11

When you become an adult in ur province eg. 18 in mb 19 in BC

Question 12

What crops are available for a ccga cash advance

Answer 12

Cereal grains
Specialty crops
Oilseeds
Forage
Pulse crops
Sweeteners
Coarse grains
Livestock

Question 13

When can you apply for before seeding cash advance

Answer 13

March 1st to may 1st

Question 14

When can I apply for before harvest cash advance

Answer 14

After seeding and before harvest

Question 15

When can I apply for a storage cash advance

Answer 15

After harvest

Question 16

When can I apply for winter cereals

Answer 16

October 1st

Question 17

When can I apply for livestock

Answer 17

Year round as long as what is applied for is already born

Question 18

Security required for intended seeding and actual seeded CA

Answer 18

Production insurance for field crops
Agistability
GARS

Question 19

Security required for post harvest CA

Answer 19

Grain in storage

Question 20

Security required for livestock CA

Answer 20

Agristability

Question 21

When do I repay my CA and how much

Answer 21

When u sell the commodity and usually about half of what u sell it for there is a minimum on website

Question 22

What are ways to insure

Answer 22

Self insurance

Mutual insurance

Question 23

Types of farm insurance

Answer 23

Autopac 
MASC (crop insurance)
Hail insurance
Worker’s compensation
Liability insurance 
General farm insurance 
Life insurance 
Death/disability insurance

Question 24

What does autopac cover

Answer 24

Any vehicle designed for road use

Question 25

Who is worker’s compensation for

Answer 25

Mandatory for any non family employee working in farm

Question 26

Liability insurance

Answer 26

Covers the farmer from visitors injuries on farm or caused by your operation

Question 27

What does life insurance cover

Answer 27

Covers over a period of time and expires when time is up

Question 28

What does Death insurance cover

Answer 28

When u buy it until u die then the family gets it. Builds like a savings account

Question 29

What does disability insurance cover

Answer 29

Provides financial assistance such as part or all of salary if u are unable to work due to injury, disability or health issue

Question 30

What is a partial budget also called

Answer 30

Cost/benefit analysis | ‘Penciling something out’

Question 31

What are typical item on a partial budget

Answer 31

``` Labour Repairs Insurance Fuel Depreciation Loan interest Extra income ```

Question 32

What is the first thing that has to be identified in a livestock budget

Answer 32

What are the productive units