The crop planning and risk management software program CropChoice$ has been updated with current crop insurance information from Agricultural Financial Services Corporation along with projected crop costs.
“Producers can also adjust individual crop costs and evaluate the effects that different risk management strategies will have on their operation — such as purchasing crop insurance and renegotiating land rental agreements,” said provincial production crops economist ML Manglai.
The program also provides probabilities for achieving margins for various cropping scenarios. Traditional budgets typically only provide a single estimate of yield and price, which only gives a simple average.
“CropChoice$ recognizes that future crop yields and prices cannot be precisely known,” said Manglai. “Based on that, it takes the revenue calculation one step further to include your own price and yield expectations. It does so by allowing you to enter high, low, and most likely price and yield values.”
The program then calculates the likelihood of achieving every possible profit outcome based on those price and yield expectations.
“It narrows down cropping options to find the mix of crops that gives the highest possible profitability while maintaining agronomic stability and taking into account personal risk preferences,” said Manglai.
This also allows producers to figure out their second-best option, he said.
“Once you are in the field, you don’t have time to evaluate last-minute options. The wrong option can be costly.”
CropChoice$ scenarios can also be used to evaluate crop insurance options.
“The software includes AFSC’s current offerings for risk coverage levels, insurance premiums, and spring price endorsement. Use the software to evaluate your crop plans with different crop insurance scenarios before the April 30 deadline.”
What to grow
The program has up to 40 dryland and irrigated crops (depending on location) and each scenario handles up to 32 fields.
To download a free copy, go to alberta.ca.