With no forecast, optimal decision rule is to always purchase insurance. Decision rules are suboptimal in case of imperfect forecasts. Land allocation conditioned on ENSO phases in the Pampas of Argentina. Constant relative risk aversion assumed. Dynamic aspects of the impact of the use of perfect climate forecasts in the Corn Belt region.
Consumers are winners, producers are losers.
Government institutional effects on the value of seasonal climate forecasts. Price changes would decrease forecast value. Risk-averse producer would value forecasts less. Crop insurance has little effect on forecast value, disaster program decreases forecast value, and farm program may increase or decrease forecast value. Utilising a farm-level decision model to help prioritise future climate prediction research needs.