Ag Budget Calculator with Built-in Risk Exposure Module
Extension Education
Glennis McClure
Extension Educator - Farm & Ranch Management Analyst
Nebraska Extension
Lincoln
Abstract
This poster presentation will provide an overview of the new University of Nebraska online Agricultural Budget Calculator (ABC) with a focus on the Risk Module. Through virtual workshops, tutorial videos, conference presentations and some in-person workshops, producers are currently learning how to utilize the budget calculator program to create and customize their crop enterprise budgets and to use its features in their decision-making processes. With over 400 user accounts established to date and 640 user enterprise budgets entered into the system, the availability of the ABC program to assist producers, bankers, and farm managers with figuring enterprise cost of production is catching on in Nebraska.
The primary objective of the Agricultural Budget Calculator project is to provide an online enterprise budgeting tool for agricultural producers. The ABC program is used to provide easy access to the eighty plus crop budgets for Nebraska. These budgets can be downloaded into the program and serve as a guide for producers to modify those budgets as needed to reflect their own production practices, projected costs, and revenue. Teaching how to use the ABC program to create enterprise budgets and then to use its analysis features like the risk module assists producers in risk management decision making and how crop insurance influences risk exposure.
One of the first components created to enhance the ABC program was the risk exposure module. The purpose of the risk exposure module is to provide additional context to the risky agricultural decision-making environment. The risk exposure module identifies the amount of capital needed if a bad revenue (yield and/or price) event is realized, events that can lead to farm ruin. The module is tailored to the individual producer’s characteristics (i.e., expected yield, production costs, crop insurance contract, location (county), crop and practice). Quantifying the capital needed to survive a rare financially devastating event is one of the educational outcomes we strive for. In addition, another educational outcome is to assist producers in understanding the role of crop insurance in managing rare financially devastating events.
Poster has NOT been presented at any previous NACAA AM/PIC
This poster is being submitted for judging. It will be displayed at the AM/PIC if not selected as a State winner. The abstract will be published in the proceedings.
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Authors: Glennis McClure, Cory Walters
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McClure, G. Extension Educator - Farm & Ranch Management Analyst, University of Nebraska - Lincoln, Nebraska, 68583
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Walters, C. Associate Professor - Agricultural Economics, University of Nebraska - Lincoln, Nebraska, 68583