This study analyzes rainfall weather index insurance used for forage crops, in the Province of Ontario, Canada. The first objective of the study was to examine factors affecting the willingness of farmers to pay for forage rainfall index insurance, and a survey was undertaken. Some factors found to influence farmers' willingness to pay were knowledge and attitude regarding insurance, their risk profile, and socio-economic factors. A second objective of the study was to examine basis risk reduction approaches. Basis risk is the difference between the actual loss on a farm and the index measured loss payments that are determined by weather station data. The focus was to capture changing yield and weather relationships over crop growth stages. Using farm level forage yield and daily weather station data from Ontario, a multi-trigger index was designed using weighted crop cycle optimization, and results show that basis risk was substantially reduced. / May 2016

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Shandong Province, renowned as China’s greatest agricultural province, is dominated by smallholders growing rain-fed crops and vulnerable to severe weather shocks that can increase poverty rates. Weather index insurance, an innovative agricultural risk management product, may be an effective mechanism to address vulnerability to catastrophic weather risk in rural regions of China, including Shandong. This project evaluated current household livelihood and risk management strategies and farmer interest in weather index insurance. Data from 174 participants were collected using a methodology that included focus groups, questionnaires, and personal interviews. Despite limited access to formal financial services, Shandong farmers generally employ informal, well-diversified income strategies and rely on no-interest informal loans from community members to manage adverse impacts of natural disasters, such as drought. Households sometimes rely on reducing consumption as a risk coping strategy; however, unlike many regions of the world, Shandong farmers do not tend to sell livelihood assets to manage weather shocks. A majority of interviewed participants were interested in weather index insurance after they understood its basic concept; however, participants expressed concerns regarding basis risk and program implementation.