An ex post measure of risk reduction is commonly used in the literature to predict the potential reduction of farmers’ yield risk due to weather-based index insurance and area-yield crop insurance. In this paper, we evaluate the predictive power of the ex post risk reduction for different...

The influence of climate variability on agricultural production and financial risks faced by an individual or an institution has been the center of the public discussion in the recent years. The changing weather patterns and environmental conditions could cause substantial unpredicted economic...

Abstract This paper studies the interaction between index insurance market and the rural credit market by investigating how the availability of index insurance affects borrowers' moral hazard behavior. Among different types of moral hazard problem in the credit market, we focuses on credit...

The influence of climate variability on agricultural production and financial risks faced by an individual or an institution has been the center of the public discussion in the recent years. The changing weather patterns and environmental conditions could cause substantial unpredicted economic...

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...

An important issue in the agricultural actuarial literature is the extent to which sample period selection affects the accuracy of insurance rating. A conditional Weibull distribution approach is developed which explicitly models the interaction of weather, technology, and other variables...

In the last decades, rice yields in South Asian countries grew tremendously in one hand and a noticeable yield fluctuation on the other. The objective of this study was to examine the rice yield distributions, estimate yield risks at country level, and compare risks between five countries namely...

Previous studies identify limited potential efficacy of weather derivatives in hedging agricultural exposures. In contrast to earlier studies which investigate the problem at low levels of aggregation, we find using straight forward temperature contracts that better weather hedging opportunities...

The paper is dedicated to the relationship of data aggregation level and yield variability. For that purpose yields of the major crop plants in Poland are analysed i.e.: winter wheat, triticale, rye, barley, oat, mixed cereals, rape and sugar beet. The research are based on data from Polish FADN...

With trade liberalization in the Common Agricultural Policy, farmers within the European Union are increasingly exposed to the risk of fluctuations in output price and yields. Using numerical simulation methods, we model the effects of crop insurance on farm revenues and land allocation patterns...