7. Evaluate liquidity.
Liquidity is the ability of the farm to meet its financial obligations in the next 12 months.
8. Evaluate repayment capacity.
The ability to repay loans is critical both to the farmer and the creditor.
9. Evaluate efficiencies.
Financial measures of efficiency include the asset turnover rate, the distribution of gross income, and costs and investment per unit.
10. Examine marketing performance.
The prices that a farmer receives or pays can suggest marketing ability, market timing, storage, discounts, and other factors.