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Abstract

This thesis examines the feasibility of weather insurance for corn in Georgia. Using historical data from 1954-1992, the relationship between weather and county-level yield is established. Then weather insurance for six counties of Georgia is designed and the efficiency of the designed insurance is examined using farm level yield data from the 1993 to 2002 time period. The weather insurance was assumed to be actuarially fair. So the performance of the insurance is under the best situation. Results indicate that the ability of weather insurance to reduce yield loss risk for farmers in Georgia is limited.

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