This section examines price and yield risk as recorded in micro data from the individual farms and uses coefficients of variation and correlations as statistical indicators of this risk or variability.2 Which is more relevant for farmers: the price risk from markets or the yield risk due to weather? The data show that the observed average wheat yield variability is higher at the farm level than at the aggregate level for all countries. Since the yield risk tends to be location specific, a favourable yield in one location is offset by an unfavourable yield in another location within the aggregated level, leading to the difference of average yield variability between the farm and aggregated levels.