An index-based margin insurance for agriculture – the example of wheat production in Austria

This paper presents an overview of institutions governing risk management in Austrian agriculture and reports on recent developments in the market of crop insurances. A novel framework to manage agricultural risks more comprehensively is also presented. The major features of this margin insurance tool are shown using wheat production as an example. Ways to address moral hazard are explored in more detail. Limitations of the presented approach and ways to overcome them are discussed in the concluding section.