| Abstract:
In this study, using a sample of 300 Iranian pistachio producers, the possibility of using area yield crop insurance for reducing production risk was investigated. In this way, township was considered as the appropriate level of geographic aggregation to use in area yield index. The results showed that, according to Miranda criteria, pistachio area yield crop insurance is a risk reducing tool. More investigations showed that the risk reduction degrees are 40% and 52% for full coverage and optimal coverage respectively. The results, also, showed that the optimal geographic region over which the area yield index is defined is smaller than township. Thus the investigation of finding the optimal level of geographic region for area yield crop insurance program should be continued in the future. At last some solutions were proposed.
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