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The Agricultural Risk Management Simulator Microcomputer Program

Published online by Cambridge University Press:  28 April 2015

Robert P. King ,
J. Roy Black ,
Fred J. Benson  and
Patti A. Pavkov
Robert P. King
Affiliation:
Department of Agricultural and Applied Economics at the University of Minnesota
J. Roy Black
Affiliation:
Departments of Agricultural Economics at Michigan State University and the University of Kentucky
Fred J. Benson
Affiliation:
Departments of Agricultural Economics at Michigan State University and the University of Kentucky
Patti A. Pavkov
Affiliation:
Minnesota Extension Service, University of Minnesota
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Abstract

The Agricultural Risk Management Simulator (ARMS) is a microcomputer program designed to help users evaluate strategies for managing yield and price risk in crop farming operations. Risk management strategies are defined by choices regarding crop mix, the purchase of multiple peril crop insurance, and the use of forward contracting. Probabilistic budgeting is used to determine the net cash flow probability distribution for each strategy considered. Flexibility with regard to both sources of probabilistic information and the form of yield and price probability distributions is a noteworthy feature of the program.

Keywords

risk managementsimulationprobabilistic budgetingcrop insurance
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 20 , Issue 2 , December 1988 , pp. 165 - 171
Copyright
Copyright © Southern Agricultural Economics Association 1988

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References

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