PASTURE, RANGELAND, FORAGE – Rainfall Index coverage (RI-PRF) is designed to offer protection against revenue losses resulting from decreased forage production, using a rainfall index to indicate low precipitation levels. The Risk Scenario Planning tool from RightRisk.org can, with a little creativity, be used to analyze expected net revenue under an RI-PRF policy. The resulting cumulative distribution graph provides the probability of earning a net return at or below any certain value. With this information in hand we can begin to answer questions like: “How effective is this coverage?” or “How often would it pay?”
For examples using the Risk Scenario Planning tool see Applied Risk Analytics “Evaluating Pasture, Rangeland, Forage – Rainfall Index Coverage” at: RightRisk.org\AppliedRiskAnalytics
The Risk Scenario Planning tool is one of over 30 individual risk analysis tools developed by RightRisk and available free of charge at: RightRisk.org\analytics.
The Enterprise Risk Analyzer is one of over 30 individual risk analysis tools developed by RightRisk and available free of charge at: RightRisk.org\analytics. RightRisk.org\Analytics.
