Production Risk Management Options for Wyoming Ranchers: Crop Insurance and Federal Disaster Programs

Abstract

Ranching is a financially risky business. On Wyoming ranches forage losses from natural hazards (severe drought, insect infestation, etc.) often occur. Livestock losses also occur because of adverse winter weather, summer heat, animal disease and predation. The link between ranch level production losses and commodity prices is weak. At the market level, when production is relatively low prices tend to be relatively high, but an individual rancher may experience low levels of production because of locally adverse production conditions when commodity prices are also low.