Risk Reduction Potential of Weather Index-based Insurance in Agribusiness – The Importance of the Aggregation Level of Yield Time Series
Abstract: Weather index-based insurance is not sufficiently used in agriculture as of yet. Basis risks are considered to be a major reason for this. By the use of weather in-dex-based insurance, basis risks remain with the farmer. However, weather index-based insurance can be interesting for agribusiness companies, specifically those which aggregate yields of several farms amongst themselves. This paper investigates the importance of the aggregation level of yield time series for the hedg-ing effectiveness of weather index-based insurance following the example of a sugar processing company. This investigation is based on empirical sugar beet yield data from 40 sugar beet producing farms in Northern Germany. Furthermore, we work with the aggregated sugar yield time series of roughly 5,000 farms, which account for sugar beets used in the sugar processing company in question. At the same time, this highly aggregated yield time series de-scribes the quantity risk of the sugar processing com-pany.... https://www.tib-op.org/ojs/index.php/gjae/article/view/1985
- Location
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Deutsche Nationalbibliothek Frankfurt am Main
- Extent
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Online-Ressource
- Language
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Englisch
- Bibliographic citation
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Risk Reduction Potential of Weather Index-based Insurance in Agribusiness – The Importance of the Aggregation Level of Yield Time Series ; volume:64 ; number:2 ; year:2015
German journal of agricultural economics ; 64, Heft 2 (2015)
- Creator
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Pelka, Niels
Mußhoff, Oliver
- DOI
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10.52825/gjae.v64i2.1985
- URN
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urn:nbn:de:101:1-2409251008239.114004282797
- Rights
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Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
- Last update
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15.08.2025, 7:33 AM CEST
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Associated
- Pelka, Niels
- Mußhoff, Oliver
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