1. For a synthesis of risk-management literature, see B. Barnett and K. Coble (2008), “Poverty traps and index-based risk transfer products”, World Development 36(10): 1766–1785 (retrieved:
http://www.agriskmanagementforum.org
/sites/agriskmanage-mentforum.org/files/Documents/Poverty%20Traps%20Index-Based%20Risk%20Transfer.pdf).
2. See further, M. Vassalos, C. A. Dillon, and T. Coolong (2013), “Optimal land allocation and production timing for fresh vegetable growers under price and production uncertainty”, Journal of Agricultural and Applied Economics 45(4): 683–699 (retrieved:
http://ageconsearch.umn.edu
/bitstream/157391/2/jaae595.pdf).
3. See, for example (extensive literature to be found in relevant chapter), R. Kappel, R. Pfeiffer, and J. Werner (2010), “What became of the food price crisis in 2008?”, Aussenwirtschaft 65(I): 21–47, Zurich (retrieved:
http://www.nadel.ethz.ch
/publikationen/food_price_crisis.pdf).
4. See, for example, A. Tarasov (2013), “Impact of interest rates on the decision to insure in agricultural production”, Studies in Agricultural Economics 115: 1–7 (retrieved:
http://dx.doi.org
/10.7896/j.1226).
5. The index is based on Pacific Ocean surface temperatures measured by the National Oceanic and Atmospheric Administration. Increases in the sea surface temperatures are a good indication of an El Nino weather pattern that brings torrential rain and catastrophic flooding to parts of northern Peru. See further on this topic, J. R. Skees and B. Collier (2010), “New approaches for index insurance: ENSO insurance in Peru”, in R. Kloeppinger-Todd and M. Sharma, eds, 2020 Vision for Food, Agriculture, and the Environment, Focus 18 Innovations in Rural and Agriculture Finance (Washington, DC: International Food Policy Research Institute).