Climate Derivatives – the Potential for Australian Agribusinesses

This presentation details climate risk management through climate indices because in the view of the author’s, Climate indices are useful for forecasting climate, crop yield and crop price; Seasonal climate/crop forecasting (SCF) should include evaluation of model errors; SOI derivatives could attract many wheat market participants in Eastern Australia; Climate Anomaly Indices (CAIs) can form a base for derivatives and insurance products around the World. Rainfall variability compared to other countries, historic drought data for Australia, and weather risk management generally for the specific case of Australian wheat farmers are discussed.