IDEAS home Printed from https://ideas.repec.org/p/ags/aaea01/20458.html
   My bibliography  Save this paper

Rainfall Insurance For Midwest Crop Production

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/20458/files/sp01ve01.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.20458?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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(01), pages 1-14, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simon Maina & Maryfrances Miller & Gregory L. Torell & Niall Hanan & Julius Anchang & Njoki Kahiu, 2024. "Index Insurance for Forage, Pasture, and Rangeland: A Review of Developed (USA and Canada) and Developing (Kenya and Ethiopia) Countries," Sustainability, MDPI, vol. 16(9), pages 1-23, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kapphan, Ines, 2011. "Weather insurance design with optimal hedging effectiveness," MPRA Paper 35861, University Library of Munich, Germany.
    2. Zhang, Li, 2008. "Three essays on agricultural risk and insurance," ISU General Staff Papers 2008010108000016857, Iowa State University, Department of Economics.
    3. Deng, Xiaohui & Barnett, Barry J. & Hoogenboom, Gerrit & Yu, Yingzhuo & Garcia, Axel Garcia y, 2008. "Alternative Crop Insurance Indexes," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 223-237, April.
    4. Barnett, Barry J. & Barrett, Christopher B. & Skees, Jerry R., 2008. "Poverty Traps and Index-Based Risk Transfer Products," World Development, Elsevier, vol. 36(10), pages 1766-1785, October.
    5. Paulson, Nicholas David, 2007. "Three essays on risk and uncertainty in agriculture," ISU General Staff Papers 2007010108000016979, Iowa State University, Department of Economics.
    6. Deng, Xiaohui & Barnett, Barry J. & Hoogenboom, Gerrit & Yu, Yingzhuo & Garcia, Axel, 2006. "Evaluating the Efficiency of Crop Index Insurance Products," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35333, Southern Agricultural Economics Association.
    7. Rong Kong & Calum G. Turvey & Guangwen He & Jiujie Ma & Patrick Meagher, 2011. "Factors influencing Shaanxi and Gansu farmers' willingness to purchase weather insurance," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 3(4), pages 423-440, November.
    8. Turvey, Calum G. & Norton, Michael, 2008. "An Internet-Based Tool for Weather Risk Management," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(1), pages 63-78, April.
    9. Lin, Shanshan & Mullen, Jeffrey D. & Hoogenboom, Gerrit, 2009. "Spatial and Temporal On-Farm Risk Management - Crop Production Scheduling and Index Insurance Strategies," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49350, Agricultural and Applied Economics Association.
    10. Wei Xu & Guenther Filler & Martin Odening & Ostap Okhrin, 2010. "On the systemic nature of weather risk," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 70(2), pages 267-284, August.
    11. Pérez Blanco, Carlos Dionisio & Gómez Gómez, Carlos Mario & Del Villar García, Alberto, 2011. "El riesgo de disponibilidad de agua en la agricultura: una aplicación a las cuencas del Guadalquivir y del Segura/Water Availability Risk in Agriculture: An Application to Guadalquivir and Segura Rive," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 333-358, Abril.
    12. Patrick S. Ward & David L. Ortega & David J. Spielman & Neha Kumar & Sumedha Minocha, 2020. "Demand for Complementary Financial and Technological Tools for Managing Drought Risk," Economic Development and Cultural Change, University of Chicago Press, vol. 68(2), pages 607-653.
    13. Isaboke, Hezron Nyarindo & Qiao, Zhang & Nyarindo, Wilckyster Nyateko & Ke, Wang, 2016. "Explaining The Perception Of Smallholders Towards Weather Index Micro-Insurance Alongside Risks And Coping Strategies," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(4), pages 1-19, October.
    14. Zhiwei Shen & Martin Odening, 2013. "Coping with systemic risk in index-based crop insurance," Agricultural Economics, International Association of Agricultural Economists, vol. 44(1), pages 1-13, January.
    15. Thitipong Kanchai & Wuttichai Srisodaphol & Tippatai Pongsart & Watcharin Klongdee, 2024. "Evaluation of Weather Yield Index Insurance Exposed to Deluge Risk: The Case of Sugarcane in Thailand," JRFM, MDPI, vol. 17(3), pages 1-15, March.
    16. repec:ags:ijag24:345239 is not listed on IDEAS
    17. Hao, Jianqiang & Bathke, Arne & Skees, Jerry R., 2005. "Modeling the Tail Distribution and Ratemaking: An Application of Extreme Value Theory," 2005 Annual meeting, July 24-27, Providence, RI 19190, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Hao, Jianqiang & Skees, Jerry R., 2003. "Structuring Institutions To Share Local Weather Risk Globally," 2003 Annual meeting, July 27-30, Montreal, Canada 21973, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Teresa Maestro & Barry J. Barnett & Keith H. Coble & Alberto Garrido & María Bielza, 2016. "Drought Index Insurance for the Central Valley Project in California," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(3), pages 521-545.
    20. Rigo, Roberta & Santos, Paulo & Frontuto, Vito, 2022. "Landscape heterogeneity, basis risk and the feasibility of index insurance: An analysis of rice in upland regions of Southeast Asia," Food Policy, Elsevier, vol. 108(C).
    21. Juárez-Torres, Miriam & Sánchez-Aragón, Leonardo & Vedenov, Dmitry, 2017. "Weather Derivatives and Water Management in Developing Countries: An Application for an Irrigation District in Central Mexico," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2), May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea01:20458. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.