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AP - Training Commercial Farmers How To Analyse And Rank Risky Alternatives

Author

Listed:
  • Richardson, James W.
  • Outlaw, Joe L.

Abstract

Risk management is a major challenge for farm managers. Monte Carlo simulation models can be used to teach commercial farmers how to manage risk. However, the decision tools for ranking risky alternatives have long been an impediment to learning the art of ranking risky alternatives. New risk ranking tools available in a Microsoft® Excel add-in, Simetar, take the art out of ranking risky alternatives. SERF and StopLight charts in Simetar are demonstrated by ranking risky alternative marketing, crop mixes and crop insurance strategies available to a representative crop farm.

Suggested Citation

  • Richardson, James W. & Outlaw, Joe L., 2007. "AP - Training Commercial Farmers How To Analyse And Rank Risky Alternatives," 16th Congress, Cork, Ireland, July 15-20, 2007 345470, International Farm Management Association.
    • Handle: RePEc:ags:ifma07:345470
    DOI: 10.22004/ag.econ.345470
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    References listed on IDEAS

    as
    1. Outlaw, Joe L. & Richardson, James W. & Knapek, George M. & Raulston, J. Marc & Herbst, Brian K. & Fumasi, Roland J. & Anderson, David P. & Klose, Steven L. & Zimmel, Peter, 2007. "Representative Farms Economic Outlook for the January 2007 FAPRI/AFPC Baseline," Working Papers 42088, Texas A&M University, Agricultural and Food Policy Center.
    2. J. Brian Hardaker & James W. Richardson & Gudbrand Lien & Keith D. Schumann, 2004. "Stochastic efficiency analysis with risk aversion bounds: a simplified approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 253-270, June.
    3. Richardson, James W. & Outlaw, Joe L. & Knapek, George M. & Raulston, J. Marc & Herbst, Brian K. & Fumasi, Roland J. & Anderson, David P. & Bryant, Henry L. & Klose, Steven L. & Zimmel, Peter, 2007. "Representative Farms Economic Outlook for the December 2007 FAPRI/AFPC Baseline," Working Papers 37977, Texas A&M University, Agricultural and Food Policy Center.
    4. Richardson, James W. & Outlaw, Joe L. & Knapek, George M. & Raulston, J. Marc & Herbst, Brian K. & Fumasi, Roland J. & Anderson, David P. & Klose, Steven L., 2007. "Representative Farms Economic Outlook for the August 2007 FAPRI/AFPC Baseline," Briefing Series 37982, Texas A&M University, Agricultural and Food Policy Center.
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