Crop Insurance Participation and Cover Crop Use: Evidence from Agricultural Resource Management Survey Data

Dylan Turner, Francis Tsiboe, Maria Bowman and Roderick M. Rejesus

Journal of Agricultural and Applied Economics, 2025, vol. Volume 57, issue Number 4

Abstract: Historical ambiguity on how cover crop use influences future crop insurance eligibility has been proposed as one explanation for low cover crop adoption rates. However, explicit guidance on cover crop use for crop insurance participants was added in the 2018 Farm Bill. This study uses farm level data from the Agricultural Resource Management Survey to ascertain whether crop insurance participation influenced adoption of cover crops and to what degree that influence persisted after the 2018 Farm Bill. Estimation of a double hurdle model, combined with a control function approach to address endogeneity, suggests statistically and economically significant effects between crop insurance expenditures and cover crop use at the “extensive margin,” but no statistically significant effect at the “intensive margin.” Estimation on subsets of the data defined by before and after the 2018 Farm Bill suggest that the effect is primarily attributable to participation trends prior to the 2018 Farm Bill. Following the 2018 Farm Bill, no statistically significant effects are observed between cover crop use and crop insurance expenditures.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Research Research Methods/Statistical Methods; Resource/Energy Economics and Policy; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:joaaec:387619

DOI: 10.22004/ag.econ.387619

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