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The Enterprise Risk Analyzer tool is one of over 30 individual risk analysis tools developed by RightRisk and available free of charge at: RightRisk.org\Analytics.
Most of today’s farms and ranches involve more than one enterprise. Production risk spread over several enterprises often contributes to their financial successes. Enterprise risk analysis – estimating net returns for an enterprise and the variability in those returns (risk) – is an often-neglected, but necessary part of developing an overall risk management strategy.
The ENTERPRISE RISK Analyzer (ERA) tool helps evaluate farm/ranch financial performance once the necessary data has been entered. Analysis includes whole farm/ranch net return, enterprise net return, break-even prices, and breakeven yields. Comparing enterprise performance and determining how much each enterprise contributes to whole-farm/ranch profitability is then possible. The ERA tool also provides risk estimates based on user projections for commodity prices and yields. The ERA tool estimates probabilities for earning a given level of net income, a break-even price, or a given break-even yield.
