This paper considers the potential for securitizing index-based insurance products that transfer weather and natural disaster risks from lower income countries. The paper begins with a brief overview of why markets for natural disaster risks are important in lower income countries and a review...

Markets for transferring catastrophic risk in agriculture are woefully lacking in developing countries. Even in developed countries, markets for transferring the risk of crop losses caused by natural hazards generally exist only with large government subsidies. However, such subsidies can be...

This article compares risk reduction from MPCI and GRP crop insurance contracts. The analysis extends and improves on the existing area-yield insurance literature in four important respects. First, the geographical scope greatly exceeds that of previous work. Second, unlike previous efforts, the...

Agricultural economists have for many decades concerned ourselves with gaining an understanding of individual behavior when confronted with risk, and developing tools to address decision-making under risk. This area of research has recently gained renewed attention for a variety of reasons. This...

Federal policy-makers increasingly emphasize the Federal Crop Insurance Program as the primary federal risk management program for farmers. Farm leaders need to understand the underlying mechanics of insurance products if they are to effectively argue their interests and contribute...

Heat stress is associated with reduced milk production in dairy cows. Insurance instruments based on an index of ambient temperature and relative humidity measured at Macon, Georgia and Tallahassee, Florida are shown to reduce net revenue risk for a representative farm in south-central Georgia.

Production agriculture and agribusiness are exposed to many weather-related risks. Recent years have seen the emergence of an increased interest in weather-based derivatives as mechanisms for sharing risks due to weather phenomena. In this study, a unique precipitation derivative is proposed...

This study analyzes efficiency of weather derivatives as primary insurance instruments for six crop reporting districts that are among the largest producers of corn, cotton, and soybeans in the United States. Specific weather derivatives are constructed for each crop/district combination based...

Revenue insurance with shallow loss protection for farmers has been introduced recently. A common attribute of most shallow loss proposals is that they would be area-revenue triggered. The impact on optimal hedge ratios of combining these shallow loss insurance proposals with deep loss...