This program builds on the risk management workshops delivered in Spring 2016. An applied research program that simulates farm-level yield and price risk is incorporated into the educational program to illustrate better and educate farmers on how risk tools can be used to preserve working capital during multiple year periods of low prices. 

Many young farmers are frustrated that risk management tools do not fully compensate when there is low yields or low prices. This educational program helps farmers, lenders, and Extension agents consider the multiple year benefits of using risk management. The advantage of not going deeper into debt, selling grain during low prices, or reducing cash reserves is illustrated through case studies. Managers can quantify the improvement in profitability, increase in cash reserves, and the lower debt levels over a five-year period. This learning-by-doing process simplifies difficult concepts while engaging the audience in the subject. 

The applied research was presented at two regional conferences and published in a peer-reviewed journal. Another journal article is under review.