The effectiveness of financial weather derivatives to hedge against risk in agriculture has not been well demonstrated; therefore, this risk hedging instrument has only been slowly adopted. The current study analyzes the hedging efficiency of weather index derivatives for corn production in...

In this study, we examine the effect of climate on corn yields in northern China using data from ten districts in Inner Mongolia and two in Shaanxi province. A regression model with a flexible functional form is specified, with explanatory variables that include seasonal growing degree days,...

Weather derivatives based on heating degree days or cooling degree days have been traded in financial markets for more than 10 years. Although used by the energy sector, agricultural producers have been slow to adopt this technology even though agriculture is particularly vulnerable to weather...