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Hedging dairy production losses using weather-based index insurance

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Author Info
Xiaohui Deng
Barry J. Barnett
Dmitry V. Vedenov
Joe W. West

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Abstract

This article proposes a temperature-humidity index insurance product and examines whether this product can effectively protect against the risk of reduced milk production caused by heat stress. Results suggest that even when premiums are at higher than actuarially fair levels and the insurance purchaser is faced with both spatial and temporal basis risks, a temperature-humidity index insurance product would provide risk management benefits to a representative south-central Georgia dairy producer. Copyright 2007 International Association of Agricultural Economists.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1574-0862.2007.00204.x
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Publisher Info
Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 36 (2007)
Issue (Month): 2 (03)
Pages: 271-280
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Handle: RePEc:bla:agecon:v:36:y:2007:i:2:p:271-280

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