This short economic video about understanding risk follows Steve, a broadacre wheat farmer with a dream to see a snow leopard. However, he needs to increase his profits significantly next season if he’s going to make it to the Himalayas. He believes it might be worthwhile taking a chance on canola.
Wheat is fairly dependable, but canola can be hard to predict. With canola, both profits and losses can be far greater than with wheat. Steve has a paddock ready for sowing and he needs to decide which crop to plant. Watch below to see what Steve decides from discussions with his trusted adviser.
This video is part of a series of economic videos developed as part of the CropPro project. The others in the series are:
Use the CropPro Option$ analysis tool to test and compare likely net income, best option and return on investment outcomes for crop management options.
Acknowledgements
Andrew Zull (Queensland Government, Department of Agriculture and Fisheries)
Chris Carter (AEGIC (formerly Government of Western Australia, Department of Primary Industries and Regional Development))
