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For examples using the RSP tool see Applied Risk Analytics “Evaluating Pasture, Rangeland, Forage – Rainfall Index Coverage” at: RightRisk.org/AppliedRiskAnalytics.
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?”
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.
