Producers make investment decisions based on the
difference between expected revenue and production costs. While this approach has worked for quite a while, the decision
environment has changed as business shocks have become more frequent. This new
business environment requires farmers to update how they make crop investment
decisions. Increases in production costs have led to an increase in
financial risk exposure while crop insurance has lessened risk exposure. The
resulting difference is unclear. Farm location, crop and cropping practice
(irrigated or dryland) also play a role.
The goal of this project was to expose farmers and ranchers to the new
web-based Ag Budget Calculator (ABC) program and identify farm risk exposure by
incorporating a module that calculates and evaluates risk exposure based on enterprise
budgeting projections. The ABC program improves on the traditional
excel-based budgets, by providing accurate producer specific costs, analysis,
and risk exposure features. Producers’ decision making improves by
understanding how much money they need when a business shock
occurs and how crop insurance contracts and cost of production influence
resilience. This project funded the development of the risk exposure
module for the ABC program, workshop curriculum on surviving business shocks,
and online tutorials.
Number of Participants: 314
There are no promotional materials available for this project.
There are no educational materials available for this project.
REPORTS & EVALUATIONS
There are no reports or evaluations available for this project.