Recent innovations in energy markets suggest the possibility of addressing agricultural risk factors by issuing derivatives on weather elements. From an agricultural policy perspective, the possibility of adopting programs of the kind could represent significant progress in terms of cost savings and market transparency. The following paper describes the origin and use of financial weather contracts, current and prospective experiences of agricultural weather risk management and, through a detailed analysis of the design of a farm level product, highlight the necessary conditions for a successful application of such instruments in the agricultural context.