1 / 58

RightRisk A Panel Discussion

RightRisk A Panel Discussion. National Risk Management Education Conference Kansas City, MI 2005 April 7-8. Panel Discussion. Panelists Overview Genesis Statistics Multi-state cooperation Complimenting other programs How to have RightRisk in your state. Panel Members.

yitta
Download Presentation

RightRisk A Panel Discussion

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. RightRiskA Panel Discussion National Risk Management Education Conference Kansas City, MI 2005 April 7-8

  2. Panel Discussion • Panelists • Overview • Genesis • Statistics • Multi-state cooperation • Complimenting other programs • How to have RightRisk in your state

  3. Panel Members • Jeffrey E. Tranel, Colorado State University • Rod Sharp, Colorado State University • John Deering, Colorado State University • John Hewlett, University of Wyoming • Trent Teegerstrom, University of Arizona • Jay Parsons, CSU & RightRisk Coordinator

  4. In The Beginning Limited number of risk simulations • For research • “Game” • Developed by Ikerd • Used by Hoag in 1995 • Graduate level course in production economics Need of risk management education for Extension audiences

  5. In The Beginning Risk and management of risk • Permeates all aspects of today’s agriculture. • Identified in1996 Farm Bill. • Producers are exploring new ideas. How to teach producers and lenders about risk management? • Non-academic • Realistic • Experiential learning • Fun

  6. Farm Survivor Void Farm Survivor

  7. Farm Survivor Developed by Colorado extension economists • Participants to manage farm operation • Dryland cropping • Cattle • Hunting rights • Four quarters & two years • Risks faced by producers over production cycle • Production • Marketing • Human

  8. Farm Survivor • Played by teams • One presenter • One facilitator per team • Recorded team decisions and outcomes • Answered questions by team members • Labor intensive

  9. Farm Survivor Presented to ag lenders • After lunch • Learned about risks faced by producers • Learned about risk management strategies • Enjoyed learning experience

  10. Farm Survivor Exploring new tactics • To reduce labor needs • To computerize • To improve presentation • Timing • Group size • Materials • Other

  11. Void Farm Survivor Ranch Survivor

  12. Ranch Survivor • Received grant (CSU & UW). • Improve game • Computerize game • Reduced labor needs • Easier development of new versions and scenarios • Website • General access to risk management education materials • Play game (after participating in workshop) • Private site • Share resources • Develop new ideas • Development of complete educational program

  13. Ranch Survivor Developed in 2001 • Western Risk Management Education Team Mountain ranch setting • Hay (350 acres) • Cow-calf (500 cows)

  14. Decisions • Forward price calves? • Buy or sell hay? • Vaccinate cows? • Retain ownership?

  15. Decisions Risks * Production ** Weather ** Disease * Market ** Shifts in demand ** Corn crop situation

  16. Decision Risk Outcomes

  17. Decisions Risks Outcomes Evaluation $$$

  18. Ranch Survivor Investment Rules: Investment • Each team member may invest $X ($1-$5) into a pot. • An additional $Y is added to sweeten the pot. • If a team member is uncomfortable making the investment, an outside investor will be found) “Winning” • Team members with expected or greater outcome get money back. • Team members with negative net incomes required to add an additional $1 to the pot. • Team with the highest net income wins the remaining pot.

  19. Ranch Survivor • Presented to: • Ag lenders • Producers • Extension agents • Western Extension Committees • Farm Management • Marketing

  20. Void Farm Survivor Ranch Survivor RightRisk

  21. RightRisk • An innovative risk research and education program to help you the farmer or rancher understand and explore risk management decisions and evaluate the effects of those decisions.

  22. RightRisk • An innovative risk research and education program to help you the farmer or rancher understand and explore risk management decisions and evaluate the effects of those decisions. • Does not make decisions for the participant. Using RightRisk, people explore risk management strategies, build decision-making skills, and learn about personal risk management styles.

  23. RightRisk • An innovative risk research and education program to help you the farmer or rancher understand and explore risk management decisions and evaluate the effects of those decisions. • Does not make decisions for the participant. Using RightRisk, people explore risk management strategies, build decision-making skills, and learn about personal risk management styles. • Uses real world farm/ranch settings and agricultural economics. Allows many kinds of risk and risk management strategies and lets you compare one strategy against another. You use real probabilities and you see the results. With RightRisk, you can run a model as many times as you like to determine if you are doing well or poorly because of luck or bad strategy.

  24. RightRisk • An innovative risk research and education program to help you the farmer or rancher understand and explore risk management decisions and evaluate the effects of those decisions. • Does not make decisions for the participant. Using RightRisk, people explore risk management strategies, build decision-making skills, and learn about personal risk management styles. • Uses real world farm/ranch settings and agricultural economics. Allows many kinds of risk and risk management strategies and lets you compare one strategy against another. You use real probabilities and you see the results. With RightRisk, you can run a model as many times as you like to determine if you are doing well or poorly because of luck or bad strategy. • In the end, the knowledge and practice you gain through RightRisk will help you make better decisions for your farming/ranching operation.

  25. Simulation GameRightRisk Provides an opportunity to practice risk management without the real world consequences

  26. RightRisk Education Coalition Develops and delivers innovative and effective risk management education programs for agriculture across the western U.S.

  27. RightRisk Education Coalition • Grants (WC-RME, CSREES, NRI, WSARE) • Website • Travel for meetings • Travel for program delivery • Program development • Support materials • Coordinator • New versions and scenarios • Existing network of co-workers • Build on other regional products: • “Risk and Resilience” • “Managing for Today’s Cattle Market and Beyond” • Western Risk Management library

  28. RightRisk Education Team Jay Jenkins Duane Griffith Wilson Gray Chris Bastian John Hewlett Willie Riggs Jay Parsons, Coordinator Bruce Godfrey John Deering Dana Hoag Dennis Kaan Rod Sharp Jeff Tranel Trent Teegerstrom Russ Tronstad

  29. Western Extension Committee Farm Management and Marketing Committees Established professional relationships • Regular interaction • Previous experience working together • Incentives Personal relationships • Committee members • Family members

  30. RightRisk Development and Use in Risk Management Education

  31. Working Scenarios • The King Family Ranch • The Wheatfields • Public Lands

  32. Working Scenarios • The King Family Ranch • A cow/calf/hay operation in the mountains of Colorado. • Scenario focus: livestock marketing.

  33. Working Scenarios • The King Family Ranch • The Wheatfields • A wheat/fallow dryland farming operation on the eastern plains of Colorado. • Scenario focus: grain marketing and crop insurance.

  34. Working Scenarios • The King Family Ranch • The Wheatfields • Public Lands • A cow/calf/hay operation near the Arizona/Utah border. • Scenario focus: grazing management.

  35. Working Scenarios • The King Family Ranch* • The Wheatfields* • Public Lands *Available on our website: http://www.RightRisk.org

  36. The Sheep Ranch The Sheep Ranch is located in the mountains of Colorado. They run 1500 head of ewes on a combination of public and private land. They typically lamb in April and sell the weaned lambs in October of each year.

  37. Scenarios in Development • More Public Lands • Double R Ranch • Bar-B-Q Ranch • Eight-year drought scenario • Wheat marketing plan scenario

  38. RightRisk Workshop Offerings • December 2002 • Western Alfalfa & Forage Conference in Sparks, NV. • 2003 • 37 workshops across 9 states • 2004 • 57 workshops across 8 states • 2005 • 10 workshops across 5 states (January & February only) Over 100 workshops across 11 states

  39. RightRisk Workshop Evaluations

  40. RightRisk Website • Website address: www.rightrisk.org • Access web versions RightRisk scenarios • Access RightRisk publications • View a schedule of RightRisk program offerings throughout the U.S. • Access a library of links to numerous on-line risk educational resources.

  41. RightRisk Website Statistics • 5,000 documented user sessions • 105,700 hits • Users represent 13 countries • 35 U.S. states and 4 Canadian provinces are represented in the user statistics.

  42. How Does RightRisk Enhance the Effectiveness of Teaching Educational Programs?

  43. Advantages of using RightRisk in an Educational Program • Hands-on activity • Everyone is involved making decisions • Competing with other teams (game) • Real farm/ranch settings • Real probabilities • Quick results (computerized simulation) • IT’S FUN

  44. RightRiskWorks in a Variety of Settings • Ag Production Meetings • Focus on production risks • Weather/Drought • Disease • Insects • Weeds • And production tools • Insurance • Diversity • Fertilization • Disease Prevention (Vaccination)

  45. RightRiskWorks in a Variety of Settings • Marketing meetings • Focus on market risks • Price variations • Cyclical patterns • Price trends • And marketing tools • Forward pricing • Retained ownership • Futures and options • Marketing plans

More Related