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.
JEL-Codes:G22, G32, Q12, Q18
Keywords:agricultural risk management, income insurance scheme, insurance product, gross margin, wheat production
Research group:Macroeconomics and Public Finance – Climate, Environmental and Resource Economics