Three specific aspects of agricultural risk management are addressed 1. Recent developments in price volatility and yield risk 2. The role of policy: - Subsidized crop insurance with examples from the massive US program ($115 billion in liability in 2011) - The 2012 US Farm Bill, which is currently being debated in Congress (with disturbing developments) 3. review of recent research on developments in the empirical modeling of risk with a focus on revenue insurance (combining aspects of dependent yield and price risks)