@article{Markovic:244916,
      recid = {244916},
      author = {Markovic, Todor and Jovanovic, Milenko},
      title = {RAINFALL INSURANCE IN WHEAT PRODUCTION WITH WEATHER  DERIVATIVES},
      journal = {Economics of Agriculture},
      address = {2011},
      number = {297-2016-3803},
      year = {2011},
      abstract = {It has been long known that weather conditions are the  main factor of
uncertainty in plant production. For this  reason, an integrated system of risk
management in plant  production is necessary today, in order to  somewhat
compensate for the loss caused by weather risks.  In the past, farmers have bought
insurance for protection  against fluctuations in crop yields caused by weather  risks.
Relatively new tools for risk management in plant  production are weather
derivatives. Although weather  derivatives show many advantages over traditional
insurance  the market for these products is still relatively limited.  Therefore it is
necessary to quantify the effect of risk  reducing that can be achieved by using
weather derivatives  on the example of selected farm in Germany. If the field  of
production is close to the meteorological station, and  if a high correlation between
weather indices and yield is  assumed, then the effect of risk reducing is  significant
(over 30 %).},
      url = {http://ageconsearch.umn.edu/record/244916},
      doi = {https://doi.org/10.22004/ag.econ.244916},
}