Case Study: Cornell University achieves 45% higher average farm incomes and 50% reduced risk with Palisade's @RISK

Cornell University - Customer Case Study

Cornell University researchers, working with colleagues at Purdue, needed to quantify how US farm programs affect farm incomes and risk and whether those programs interact with or reduce demand for subsidized crop insurance. To do this work they turned to Palisade and used Palisade’s @RISK to model uncertainties in yields, prices and costs and to test individual and combined policy scenarios.

Using Palisade’s @RISK the team built a simulation of a representative farm parcel, incorporating correlated uncertainties and running scenario comparisons; Palisade’s tools enabled systematic evaluation of each policy instrument. The model showed that the full suite of programs would raise average farm incomes by nearly 45% and cut economic risk roughly in half, and it also found that these standard programs materially reduce the value of subsidized crop insurance for risk‑averse producers.

Cornell University

Brent Gloy

Applied Economics and Management Department