ABSTRACT
Although agricultural production is a risky business, producers can reduce potentially devastating losses if they are willing to sacrifice some of their financial rewards. Would you invest in a new crop variety that could make you $100 per acre if there was also a chance of losing $50 per acre? How would your answer change if you could make $500 instead of $100? Each farm manager might answer this question differently. After all, everyone has a different view about what constitutes a “risky” decision, and everyone has a different preference for the amount of risk he or she is willing to face.
