[{"data":1,"prerenderedAt":93},["ShallowReactive",2],{"page-\u002Fhedges":3},{"id":4,"title":5,"body":6,"description":81,"extension":82,"meta":83,"navigation":84,"path":85,"seo":86,"stem":91,"__hash__":92},"content\u002Fhedges.md","Demeter | Hedges",{"type":7,"value":8,"toc":77},"minimark",[9,18,25,34,41,51,64,70],[10,11],"hedges-hero-payoff-module",{":meta":12,":primaryCta":13,":secondaryCta":14,"eyebrow":15,"headline":16,"standfirst":17},"[{\"prefix\":\"Crop-aligned\",\"strong\":\"seasonal windows\"},{\"strong\":\"Specialist\",\"suffix\":\"risk partners\"},{\"strong\":\"North America\",\"suffix\":\"& Iberia\"}]","{\"label\":\"Open the workbench →\",\"href\":\"#workbench\"}","{\"label\":\"Explore hedges\",\"href\":\"#how-an-index-hedge-works\"}","Hedges","Protection that pays on an index,\nnot a loss adjustment process.\n","Index-settled hedging and insurance contracts are triggered by a published Demeter index value. No demonstration of loss or adjustment process is needed.",[19,20],"hedges-steps-module",{":steps":21,"count":22,"lede":23,"title":24},"[{\"heading\":\"Pick an index and window\",\"copy\":\"Choose a Demeter index and a seasonal window or whole-season coverage.\"},{\"heading\":\"Set the trigger and amount\",\"copy\":\"Define the index level below which the contract pays, and the amount of the payment. The calculator updates in real time.\"},{\"heading\":\"Settle on the published value\",\"copy\":\"At expiry the contract settles automatically on the published index value. No claims process or adjustment is required.\"}]","STEP 01 → 03","Demeter provides the settlement index; buyers contract with risk partners directly.","How an index hedge works",[26,27],"hedges-comparison-table-module",{":columnHeaders":28,":rows":29,"count":30,"dimensionHeader":31,"lede":32,"title":33},"[\"Index hedge\",\"Traditional crop insurance\"]","[{\"dimension\":\"Trigger\",\"cells\":[{\"text\":\"Published index value\"},{\"text\":\"Observed loss\"}]},{\"dimension\":\"Settlement speed\",\"cells\":[{\"text\":\"Days\",\"positive\":true},{\"text\":\"Weeks to months after adjustment\"}]},{\"dimension\":\"Claim process\",\"cells\":[{\"text\":\"None — automatic\",\"positive\":true},{\"text\":\"Proof of loss, adjuster visit, paperwork\"}]},{\"dimension\":\"Who can buy\",\"cells\":[{\"text\":\"Any participant with exposure to the index\",\"positive\":true},{\"text\":\"Grower of record\"}]},{\"dimension\":\"Coverage windows\",\"cells\":[{\"text\":\"Any defined window within the season\",\"positive\":true},{\"text\":\"Fixed policy year\"}]},{\"dimension\":\"Basis risk\",\"cells\":[{\"text\":\"Present — mitigated via region, tail β and footprint weighting\"},{\"text\":\"Lower (field-level)\"}]},{\"dimension\":\"Transparency of payout\",\"cells\":[{\"text\":\"Determined by a public value\",\"positive\":true},{\"text\":\"Determined by adjuster assessment\"}]}]","COMPARISON","Dimension","Parametric contracts can supplement and sometimes replace traditional cover.","Index hedges vs. traditional crop insurance",[35,36],"hedges-personas-module",{":personas":37,"count":38,"lede":39,"title":40},"[{\"key\":\"growers\",\"label\":\"Growers\",\"detail\":{\"heading\":\"Growers\",\"copy\":\"Protect revenue when yield or quality deteriorates, or opex increases, with growing conditions. Configure coverage by phenological stage — e.g. bloom or pre-harvest — or opt for whole-season.\"},\"secondary\":{\"heading\":\"How it complements MPCI\",\"copy\":\"Index hedges sit alongside Multi-Peril Crop Insurance: they top up specific phenological windows, close the gap between insured and actual revenue, and can be scaled to any portion of the grower's footprint.\"}},{\"key\":\"processors\",\"label\":\"Processors & handlers\",\"detail\":{\"heading\":\"Processors & handlers\",\"copy\":\"Protect throughput-dependent margins when supply volumes shift with seasonal conditions. Index contracts can be sized to the volumes a processor contracts for or expects to receive.\"}},{\"key\":\"lenders\",\"label\":\"Ag lenders\",\"detail\":{\"heading\":\"Ag lenders\",\"copy\":\"Reduce portfolio default risk tied to seasonal weather. Index protection can be embedded in loan products or held separately at the portfolio level.\"}},{\"key\":\"inputs\",\"label\":\"Input providers\",\"detail\":{\"heading\":\"Input providers\",\"copy\":\"Protect revenue exposed to grower purchasing power.\"}},{\"key\":\"equipment\",\"label\":\"Equipment dealers\",\"detail\":{\"heading\":\"Equipment dealers\",\"copy\":\"Protect long-term leases against seasonal stressors affecting grower customers.\"}},{\"key\":\"buyers\",\"label\":\"Commodity buyers\",\"detail\":{\"heading\":\"Commodity buyers\",\"copy\":\"Hedge availability and cost of inputs against growing condition risk.\"}},{\"key\":\"financial\",\"label\":\"Financial actors\",\"detail\":{\"heading\":\"Financial actors\",\"copy\":\"Express views on crop condition directly via index-settled instruments, without the operational overhead of physical markets.\"}}]","06 PERSONAS","Protection is available to anyone with exposure to the underlying crop — not just the grower of record.","Who buys index hedges",[42,43],"hedges-workbench-preview-module",{":controls":44,":side":45,":stages":46,"count":47,"lede":48,"title":49,"url":50},"[{\"label\":\"Region: Northern San Joaquin\",\"active\":true},{\"label\":\"Year: 25yr Median\"},{\"label\":\"Tail β 97%\"},{\"label\":\"Footprint: 1,200 ac\"},{\"label\":\"$350\u002Fac\"}]","{\"eyebrow\":\"Modelling\",\"title\":\"Run the calculator in real time.\",\"body\":\"The workbench determines correlation between an exposure footprint and the index, allows interactive modelling and translates to illustrative outcomes.\",\"bullets\":[\"Region-specific DASI decomposition\",\"Tail-β calibration\",\"Four phenological windows plus whole-season\",\"Quote → bind with a risk partner directly\"],\"cta\":{\"label\":\"Open Workbench →\",\"href\":\"https:\u002F\u002Fhedging.demeterdata.ag\",\"external\":true}}","[{\"label\":\"Winter\"},{\"label\":\"Bloom\",\"active\":true},{\"label\":\"Kernel fill\"},{\"label\":\"Pre-harvest\"}]","LIVE TOOL","Model protection against any live Demeter index and observe how the contracts can operate.","Workbench","hedging.demeterdata.ag",[52,53],"hedges-worked-example-module",{":net":54,":rows":55,":scenarioBody":56,"count":57,"footnote":58,"lede":59,"scenarioEyebrow":60,"scenarioHeadline":61,"title":62,"totalsHeader":63},"{\"label\":\"Net outcome\",\"perAcre\":\"+ $183\",\"total\":\"+ $220,000\",\"positive\":true}","[{\"label\":\"Premium paid\",\"perAcre\":\"$150\",\"total\":\"$180,000\"},{\"label\":\"Amount per index point\",\"perAcre\":\"$33.33\",\"total\":\"$40,000\"},{\"label\":\"Trigger\",\"perAcre\":\"-10\",\"total\":\"-10\"},{\"label\":\"DASI change at window close\",\"perAcre\":\"-20\",\"total\":\"-20\"},{\"label\":\"Points above trigger\",\"perAcre\":\"10.0\",\"total\":\"10.0\"},{\"label\":\"Gross payout\",\"perAcre\":\"$333\",\"total\":\"$400,000\"}]","[\"Grower buys proteciotn against a DASI decline of more than 10 points for the bloom window (mid Feb – mid Mar), at $40,000 per index point of decline. Illustrative premium: \u003Cstrong>$180,000\u003C\u002Fstrong> ($150\u002Fac). A frost event in Week 24 damages orchards across the Northern San Joaquin Valley; DASI falls from 102 to 82, a decline of 20 points, at window close.\",\"The contract settles automatically after the bloom window closes, without a claims or loss adjustment process.\"]","ILLUSTRATIVE","Illustrative only. Values are hypothetical. Binding terms are neogiated with and offered by a risk partner.","A hypothetical 1,200-acre Northern San Joaquin grower buys a hedge for the almond bloom window in California.","Scenario · Bloom 2025","Frost event in Week 24 pushes DASI below trigger.","Worked example","× 1,200 ac",[65,66],"common-cta-button-module",{":external":67,"href":68,"label":69},"true","https:\u002F\u002Fdemeter-site.zapier.app\u002Findex-hedges","Request info",[71,72,73],"common-disclaimer-module",{},[74,75,76],"p",{},"Demeter publishes indices for reference and research purposes. It is not an authorised benchmark administrator under UK BMR, does not administer a regulated benchmark, and does not offer, recommend, or arrange financial products. The hedging workbench is for illustration; it produces no quotes or offers. Contracts are written by independent risk partners, with whom buyers contract directly.",{"title":78,"searchDepth":79,"depth":79,"links":80},"",2,[],"Index-settled hedging and insurance contracts triggered by published Demeter index values, with no loss adjustment process required.","md",{},true,"\u002Fhedges",{"meta":87,"title":5,"description":81},[88],{"name":89,"content":90},"keywords","demeter, demeter data, agriculture data, agricultural indices, agtech, Demeter | Hedges, Hedges","hedges","qCh45Hhp0jKjAk-GpToTcpqscd6T3kt8uwla-oGGXp4",1776981670074]