This site was created with the purpose of helping cow-calf operations effectively analyze the net income risk involved in running a cow-calf operation and providing an analysis of a few of the most popular risk management tools available to producers. These tools include hedging with the futures market, buying a put option, buying livestock risk protection-feeder cattle insurance (LRP), or buying adjusted gross revenue-lite insurance (AGR-Lite). The analysis tool asks for basic information such as number of head of cattle you are running as well as weaning percents, weights, and price. Based on the information provided by the user, the tool will then perform a simulation analysis.
It is important to note that the purpose of this tool is not to calculate nor to predict the net income of any given year. It is designed rather to quantify the amount of risk inherent in the cash market, as well as production risk, and quantify the reduction of risk available through the various pricing and insurance options. Links have been provided to pages containing specific information and help in calculating some of the different values you will need to enter. For additional help there are numerous resources available at www.cattlemarketanalysis.org
To continue on to the risk analysis tool just click here.