There are many different sources of risk, which can affect income and ultimately the survival of an agricultural operation. Management decisions about what to produce, how to handle potential problems, and when to take action can all have outcomes that turn out to be less than what was hoped for because of the occurrence of uncontrollable events
Identifying and implementing a risk management strategy can help a manager gain piece of mind when it comes to managing risk and systematically incorporate risk management preferences into the decision-making process.
Ag Survivor provides you an opportunity to try different management strategies to see if you can improve over what you did last time. It is this ability to practice several strategies that we are going to take advantage of in learning about risk-return tradeoff. By downloading and using the Excel spreadsheet provided
here you can practice making management decisions that you think will allow King Family Ranch to make more money without taking much more risk.