Risk scenario planning tool for education on livestock risk protection insurance for feeder cattle

Abstract

It can be difficult to provide livestock producers with effective education on livestock risk protection (LRP) insurance. Recently, the RightRisk Education Team developed a risk scenario planning tool that applies a partial budget analysis approach to decision making under uncertainty. A case study for use with the tool was developed for educating producers about the U.S. Department of Agriculture Risk Management Agency's Livestock Risk Protection Insurance Plan for Feeder Cattle. We have found the combination of the tool and case study to be effective in developing producers' understanding of LRP insurance to a level at which they feel comfortable analyzing the decision of whether to purchase the insurance.