Crop insurance and unintended consequences
Story Date: 8/17/2021

 

Source: NCSU, 8/13/21


A new study suggests that crop insurance serves as a disincentive for farmers to adopt climate change mitigation measures on their croplands. 

The study by researchers at North Carolina State University examined the interactions of warmer temperatures, crop yield risk and crop insurance participation by farmers. For the study, researchers developed models using historical county-level corn and soybean production data in the United States, with an eye toward understanding the production impacts of rising temperatures.
The researchers found that variation in crop yields due to higher temperatures rose when more farmers had crop insurance. Interestingly, the results showed greater variability effects for corn yields than for soybean yields.

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