Examining Adverse Selection in Organic Crop Insurance: Where Do We Go From Here?

Understanding when and why organic farmers use crop insurance can not only instruct the design of an equitable and financially sustainable crop insurance system but also identify production methods that decrease dependence on program-based risk management. In this article, the research team will identify factors influencing organic farmers’ decision to purchase or forgo crop insurance. Do organic farmers opt out of crop insurance because it is not cost-effective, because alternative risk management tools are preferred, due to barriers to access, or for some other reason? Understanding the drivers of and barriers to crop insurance use by organic producers can inform crop insurance designs that meet producer needs as well as illustrate alternative risk management methods that should not be lost as a result of the crop insurance safety net.