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Risk Calculator

Updated August 31, 2020
Professional headshot of Matthew Diersen

Matthew Diersen

Griffith Endowed Professor and SDSU Extension Risk and Business Management Specialist

Additional Authors: Jack Davis

The SDSU Extension Risk Calculator is designed to combine crop insurance, government programs, and marketing tools together for a crop. Analyzing the use of different combinations of marketing tools and risk management levels, combined with the addition of crop production costs (which can be determined by utilizing the Crop Budgets) to the spreadsheet can provide information on the potential income per acre.

To utilize the calculator producers will need to know the cost and type of insurance products available for their acres. Futures prices and the cost of options will also need to be known. To fully evaluate income per acre, producers are encouraged to utilize the Crop Budgets to determine their individual cost of production.

These budgets are provided to aid producers with risk and price management decision making. Producers that know their cost of production can combine risk management tools, like crop insurance, with marketing tools to limit losses or increase their average selling price.

Disclaimer: The preceding is presented for informational purposes only. SDSU does not endorse the services, methods or products described herein, and makes no representations or warranties of any kind regarding them. This publication is not legal advice and should not be substituted for the guidance and recommendations of experienced legal counsel. Legal questions specific to your situation should be directed to a licensed attorney.