Teaching farmers about how various risk management tools work is often difficult in a classroom type setting. Because risk management and the associated tools are often rather abstract, just explaining the information is often not enough for farmers to develop any practical knowledge about the topic. What is needed is some way for farmers to actually practice using the various risk management tools that doesn’t cost them any money and allows them to see results in a few hours or less.
This poster demonstrates a computer-based simulation that allows farmers to try various risk management strategies in a short timeframe and without any real money being used. The simulation game developed here is for analyzing and trying out dairy put options. Price risk and the option prices are based on real data. The simulation allows farmers to purchase various put options throughout a simulated year and then see how much money they made or lost compared to not using the options.
|Conference||2007 National Extension Risk Management Education Conference|