Table 7.

Risk premiums between intensified management strategies and conventional drought mitigation strategy (0COND¹)

Production system3	Level of risk aversion2
	Risk neutral	Moderately risk averse	Extremely risk averse
4CON	246.00	245.32	244.59
8CON	197.78	196.03	194.35
12CON	98.83	94.41	90.16

¹0COND = conventional pasture-based system supplemented hay during drought in cow–calf sector.

²Values indicate a dollar per cow benefit of intensification over hay systems.

³4CON = cow–calf sector limit-fed in confinement for 4 mo; 8CON = cow–calf sector limit-fed in confinement for 8 mo; 12CON = cow–calf sector limit-fed in confinement for 12 mo.