You vs. You: Fear or greed
- ZISK
- 5 minutes ago
- 1 min read
It’s easy to characterize all farming / ranching businesses as being the same. Nothing could be further from the truth, though. Every operation possesses its own unique profile. That’s especially important as it relates to risk management; namely, there is no one-size-fits-all prescription.
To that end, one of the key questions that needs to be asked at the outset surrounds the respective risk profile of the operation. That is, where do you fall in the spectrum between fear and greed?
On one hand, fear represents an emphasis on loss aversion. The pain of loss far outweighs the pleasure of the gain. We’re all prone to that feeling, but some more than others. And the need to bolster protection against downside risk becomes more important with increasing debt load and/or age of the primary operator. The priority becomes more about return “of” capital versus return “on” capital.
Nevil Speer
January 23, 2026
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