Reducing yield risks of extreme weather events by combining crop diversification and insurances

• Weather risks in German agriculture vary greatly from region to region, and droughts have been the weather risk with the highest monetary losses between 1995 and 2019. • Growing multiple crops is often an effective strategy for significantly reducing a farm's overall yield risk in the event of drought. • Multiple-yield insurance is one way of making yield insurance more affordable for farms with diverse crop rotations.