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Agricultural production is vulnerable to severe weather such as heavy rain, cyclones, and cold wave, which challenges the matching of random output with random demand for agricultural products supply chains. The goal of this paper is to design an effective risk transfer mechanism for managing severe weather risks so as to ensure the stable operation of the agricultural products supply chain. We study the coordination of two\u2010level agricultural products supply chain with a single company and a single farmer under the influence of severe weather. Taking rainstorm weather as an example, this paper designs a risk transfer mechanism based on weather index (rainfall) insurance: \u201crainfall index insurance\u2009+\u2009revenue sharing\u2009+\u2009risk transfer fee.\u201d It is found that this risk transfer mechanism can overcome distortion of the farmer\u2019s agricultural investment level under the influence of severe weather. When the contract parameters meet certain conditions, using the risk transfer mechanism can achieve the supply chain coordination and a win\u2010win situation. More importantly, weather change does not affect the Pareto improvement of the company and the farmer under the risk transfer mechanism. In addition, we also find that the company can incentivize the farmer to purchase weather index insurance and use the insurance market to shift the severe weather risk encountered during the agricultural production to protect the company\u2019s and farmer\u2019s income and the stable operation of the supply chain.<\/jats:p>","DOI":"10.1155\/2018\/2369423","type":"journal-article","created":{"date-parts":[[2018,8,14]],"date-time":"2018-08-14T23:30:42Z","timestamp":1534289442000},"update-policy":"http:\/\/dx.doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":12,"title":["Risk Transfer Mechanism for Agricultural Products Supply Chain Based on Weather Index Insurance"],"prefix":"10.1155","volume":"2018","author":[{"ORCID":"http:\/\/orcid.org\/0000-0002-4017-8749","authenticated-orcid":false,"given":"Hongyong","family":"Fu","sequence":"first","affiliation":[]},{"given":"Jiawen","family":"Li","sequence":"additional","affiliation":[]},{"given":"Yujie","family":"Li","sequence":"additional","affiliation":[]},{"ORCID":"http:\/\/orcid.org\/0000-0002-7035-5283","authenticated-orcid":false,"given":"Shengzhong","family":"Huang","sequence":"additional","affiliation":[]},{"given":"Xiangkai","family":"Sun","sequence":"additional","affiliation":[]}],"member":"311","published-online":{"date-parts":[[2018,8,14]]},"reference":[{"key":"e_1_2_11_1_2","doi-asserted-by":"publisher","DOI":"10.1016\/j.omega.2005.07.011"},{"key":"e_1_2_11_2_2","doi-asserted-by":"publisher","DOI":"10.1016\/j.jdeveco.2004.01.001"},{"key":"e_1_2_11_3_2","first-page":"242","article-title":"Evaluating the impacts of low-temperature, sleet and freeze disaster on the planting industry in China","volume":"29","author":"Liu B. 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