Weather Derivatives as a Potential Risk Management Tool for Irrigators

Irrigators in the Republican Basin and in parts of the North Platte Basin must learn to incorporate multiple year drought risk into their management plans, as they adapt to the limitations imposed by five-year pumping allocations. A major concern involves the implications of being water-short during the later years of the allocation period, because of an accumulative rainfall shortage or drought. Currently, producers can either ignore the risk of substantially lower incomes if their allocation is exhausted too soon, or reduce the risk by using less water early in the allocation period. The latter approach, however, may substantially reduce the present value of total net income over the five-year period. Alternatively, in the future it may be possible to use weather derivatives to manage income risk.

Overabundant deer: Better management through research

Overabundance of white-tailed deer (Odocoileus virginianus) continues to challenge wildlife professionals nationwide, especially in urban settings. Moreover, wildlife managers often lack general site-specific information on deer movements, survival, and reproduction that are critical for management planning. We conducted radio-telemetry research concurrent with deer culling in forest preserves in northeastern Illinois and used empirical data to construct predictive population models. We culled 2,826 deer from 16 forest preserves in DuPage County (1992-1999) including 1,736 from the 10 km2 Waterfall Glen Forest Preserve. We also radio-marked 129 deer from 8 preserves in DuPage and adjacent Cook County (1994-1998). Recruitment was inversely associated with deer density suggesting a classic density-dependent response. Female deer were philopatric and 20% of adult males dispersed. Survival was high for all sex and age classes, and deer-vehicle collisions accounted for >55% of known mortalities. Based upon data from other areas, early attempts to apply population models to deer at Waterfall Glen Forest Preserve were not useful. The subsequent quantification of the density-dependent recruitment response and use of other empirical data strengthened the predictive capability of models. Our experience illustrates the importance of understanding demographics of overabundant deer in order to set realistic objectives and make sound management decisions.