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Abstract

Worldwide, extreme climate risks cause stakeholders in food supply chains to search for new risk management tools. In Australia, recently so‐called crop yield simulation insurance has been introduced based on an integrated agrometeorological simulation model. Current uptake is relatively low, possibly because Australian farmers perceive commodity price risk as more important than climate risk. Also, they perceive risk management tools such as water management and diversification as more important than buying crop insurance. Still, opportunities seem to exist for new insurance products, such as crop yield simulation insurance, as indicated by farmers’ interest into such products. Outcomes are useful in worldwide discussions on risk management opportunities in dryland agriculture.

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