Index-Based Margin Insurance in Agriculture - On the Example of Wheat Production in Austria

This paper presents a concept of a system allowing farmers to insure against price risk of inputs and products. The insurance existing in agriculture so far (against hail and drought) did not cover incomes. The basic insurance category, which also takes into account the prices of products and inputs, is the gross margin obtained from respective products. The concept of gross margin insurance was discussed on the example of wheat. The article does not discuss the legal issues related to the implementation of the proposed system, which provides for state support.

Keywords: Agricultural Insurance, Gross Margin, Revenues, Inputs

JEL Classification: Q12, Q18, G22, G32

Suggested Citation: Suggested Citation

Sinabell, Franz and Url, Thomas and Heinschink, Karin, Index-Based Margin Insurance in Agriculture - On the Example of Wheat Production in Austria (2017). Problems of Agricultural Economics, 1(352) 2017, 133-145, Available at SSRN: https://ssrn.com/abstract=3091677