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BEEF CATTLE PRODUCTION IS VULNERABLE TO ECONOMIC LOSSES FROM VARIOUS UNCONTROLLABLE EVENTS LIKE DROUGHT AND DISEASE, BUT LOSSES DUE TO RAPID PRICE DECLINES HAVE HISTORICALLY BEEN THE PRIMARY SOURCE OF ECONOMIC LOSSES TO UNITED STATES (US) CATTLE PRODUCERS. STUDIES HAVE SHOWN PRICE RISK MANAGEMENT TOOLS SUCH AS FUTURES AND OPTIONS, FORWARD CONTRACTS, AND LIVESTOCK RISK PROTECTION INSURANCE (LRP) CAN BE EFFECTIVE IN REDUCING LOSSES FROM PRICE DECLINES; HOWEVER, PRODUCERS RARELY USE THESE TOOLS. TO OUR KNOWLEDGE, NO STUDY HAS ATTEMPTED TO IDENTIFY BARRIERS TO ADOPTING PRICE RISK MANAGEMENT TOOLS, PERCEPTIONS OF THE EFFECTIVENESS OF THESE TOOLS, AND HOW THESE TOOLS COULD BE CHANGED TO BE MORE USABLE. THEREFORE, WE PROPOSE AN INTEGRATED PROJECT THAT STARTS WITH CONDUCTING A US SURVEY OF BEEF CATTLE PRODUCERS TO DETERMINE: BARRIERS TO ADOPTING THESE TOOLS, PERCEIVED EFFECTIVENESS OF THESE TOOLS, HOW PRODUCER RISK PREFERENCES IMPACT THEIR ADOPTION OF THESE TOOLS, PRODUCERS' PREFERRED INFORMATION IN A MOBILE APPLICATION TO ASSIST THEM IN USING THESE TOOLS, AND HOW HYPOTHETICAL CHANGES TO LRP WOULD AFFECT ADOPTION OF THE TOOL. THE RESULTS WILL INFORM THE DATA-DRIVEN DEVELOPMENT OF A FREE MOBILE APPLICATION THAT WOULD CONTAIN INFORMATION NEEDED FOR MAKING INFORMED AND EFFECTIVE RISK MANAGEMENT DECISIONS. THE LONG-TERM GOAL OF THIS PROJECT IS TO IMPROVE US BEEF CATTLE PRODUCERS' ECONOMIC SUSTAINABILITY THROUGH RESEARCH ON AND EDUCATION OF PRICE RISK MANAGEMENT, ESPECIALLY FOR SMALL- AND MEDIUM-SIZED PRODUCERS.

$634,423FY2022National Institute of Food and AgricultureUSDA

University Of Tennessee, Memphis TN

Investigators

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