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.

RELATED LAWS ON EXOTIC AND NATIVE WILD ANIMALS

This paper is submitted in an effort to acquaint the personnel of allied State agencies with related laws which control the public and private possession of live exotic and native wild animals. The need for this common knowledge of related laws by agencies with law enforcement responsibility is readily apparent when the annual number and related problems from imported or resident wild animals in California are examined. In addition to resident wild animal populations, millions of fish and thousands of mammals, birds, and reptiles enter California each year through the utilization of most methods of transportation. Most of these imported animals are exotic species from foreign lands which cannot be readily identified and pose various degrees of potential and actual threat to native wild life, agriculture, and public health if they are introduced into the wilds of this State. For the purpose of this report, a general picture of imported exotic animals is presented in an introduction, and specific animals with related laws are treated individu-ally under the headings of current laws and future regulations.