Submitted to: Dynamic Cropping Systems: Principles, Processes and Challenges
Publication Type: Proceedings
Publication Acceptance Date: 8/7/2003
Publication Date: 8/7/2003
Citation: ARCHER, D.W., PIKUL JR, J.L., RIEDELL, W.E. ANALYZING RISK AND RISK MANAGEMENT IN CROPPING SYSTEMS. PROCEEDINGS OF DYNAMIC CROPPING SYSTEMS: PRINCIPLES, PROCESSES AND CHALLENGES. 2003. P. 155-164. Interpretive Summary: Risk is a natural part of cropping systems and cropping system management. Two cropping systems examples were used to show how risk can be analyzed. The examples showed how different sources of risk and risk management tools affect overall risk. The impact of the findings is a better understanding of the importance of risk and knowledge of available tools for risk analysis by researchers, extension and Natural Resources Conservation Service personnel. This will lead to development of economically viable cropping systems.
Technical Abstract: Risk is an intrinsic part of cropping systems and cropping system management. A stochastic budgeting example using field plot data is used to illustrate common sources of risk and methods producers use to deal with risk. An additional example utilizes crop simulation modeling to illustrate the potential importance of timeliness risk in cropping system choices. The examples provide a framework for presenting risk concepts and risk analysis techniques.