Robert Ranieri and Ariel Singerman.
Production risk is one of the main risks that growers are subject to. Unlike in manufacturing, a grower can combine the same inputs every year and yet obtain different yields each time. The main source of risk and, therefore, the extent to which yields may differ from year to year in crop production stems from the unpredictable nature of weather, pests, diseases, etc. Figure 1 illustrates the indemnities (in percent) for all insured crops in Florida by cause of loss during 2016/17.
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