Applied Risk Analytics: A Series Of Case Studies Highlighting Risk Analysis In United States Agriculture

United States farm policy has created a need for agricultural producers to better understand and effectively manage risk. However, risk is a difficult concept to address because the ideas are challenging, and the breadth of solutions is wide. Even when managers understand the concept, applying the tools and skills to evaluate options can be difficult. RightRisk has been involved in developing teaching simulations, online courses, and risk decision tools since 2001. RightRisk Analytics (RRA) utilizes a partial budget framework—added returns; reduced costs; added costs; or reduced returns—presentation of results via distributions, and other techniques to teach about risk management in agriculture. However, these tools can be difficult to apply without some initial guidance. The Applied Risk Analytics case study series demonstrates the application of risk analytics in evaluating a variety of farm management decisions. Not only does the series lay out common management decisions and the alternatives under consideration, but it also walks the reader through the process of formulating the inputs, making entries, and observing the results. Discussion of the risk outcomes (distributions) is also presented, along with their implications compared to the alternatives. Visit RightRisk.org to explore these tools, access educational bulletins, and learn more.