The degree of CRRA of 2 is chosen for the entire simulation analysis. The results in Part II depend on this level of risk aversion. Some sensitivity analysis is presented in (TAD/CA/APM/WP/RD(2009) 14/FIN AL]. Since the first order conditions to maximize the expected utility lead to analytical expressions that are difficult to quantify, the analysis depends on simulation with an empirically calibrated model. The first step of calibration generates the multivariate normal distribution of uncertain prices and yields that have already been performed to simulate crop specific revenue in the previous section. The benefit from crop yield insurance strategy gt is the net of an indemnity receipt and insurance premium payment.