Who buys crop insurance? Predictors of the participation gap between organic and conventional farms

Abstract

This study examines the participation gap in crop insurance between organic and conventional producers.To solicit input from producers of organic and diversified crop production systems, we developed a national survey through the Organic Agriculture Research and Education Initiative (OREI) that resulted in over 1,000 valid responses, as well as data from the Agricultural Resource Management Survey (ARMS). Results suggest a high degree of correlation between crop insurance participation with respect to the degree of commercialization of a farm. Additionally, small and diversified operations report that the complexity and record keeping associated with crop insurance is often not worthwhile. This paper concludes with a discussion regarding future risk management education programs and how they can be better targeted by combining the use of crop insurance in conjunction with improved record keeping and a better understanding of loan requirements and documentation.