The Potential to Use Futures and Options to Manage Crop Insurance Losses

Jonathon Driedger, Lysa Porth and Milton Boyd

No 235747, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: Crop insurers have limited ability to manage the risk of losses once premiums are set and farmers have taken out their policies. Any additional instruments that enhance the ability for insurers to reduce their risk between when premiums are set and final yields are determined can help manage potential losses. The relationship between crop insurance losses and changes in futures prices are examined, and whether there is the potential to hedge crop insurance losses with grain futures contracts.

Keywords: Agricultural Finance; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 19
Date: 2016
New Economics Papers: this item is included in nep-agr, nep-ias and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235747

DOI: 10.22004/ag.econ.235747

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