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Rainfall Insurance For Midwest Crop Production

Author

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  • Vedenov, Dmitry V.
  • Miranda, Mario J.

Abstract

The paper discusses a methodology for design and pricing of index insurance contracts for crop production. The methodology heavily relies on establishing a relationship between the index and yields in order to evaluate the contract performance in hedging farmers' risk. However, analysis of yield/rainfall data series for Iowa corn and Kansas wheat fail to produce a reliable and meaningful relationship which can be used uniformly across several counties and/or crop producing districts. Further research is needed as to applicability of rainfall insurance to specific crop/region combinations.

Suggested Citation

  • Vedenov, Dmitry V. & Miranda, Mario J., 2001. "Rainfall Insurance For Midwest Crop Production," 2001 Annual meeting, August 5-8, Chicago, IL 20458, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20458
    DOI: 10.22004/ag.econ.20458
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    File URL: https://ageconsearch.umn.edu/record/20458/files/sp01ve01.pdf
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    References listed on IDEAS

    as
    1. Martin, Steven W. & Barnett, Barry J. & Coble, Keith H., 2001. "Developing And Pricing Precipitation Insurance," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-14, July.
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