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The Impact of Crop Insurance Participation on Landscape Complexity

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  • Che, Yuyuan
  • Aglasan, Serkan
  • Burchfield, Emily K.
  • Rejesus, Roderick M.

Abstract

This study explores how increased participation in the Federal Crop Insurance Program likely influences county-level landscape complexity. We utilize 2008-2018 county-level panel data with information on landscape complexity, crop insurance participation, and a number of weather variables to achieve the study objective. We apply linear fixed effect models, fixed effect instrumental models, and a number of robustness checks in the empirical analysis (i.e., two “external-instrument-fre” estimation procedures and a variety of alternative empirical specifications). Our estimation methods take advantage of the panel nature of the data to address various specification and endogeneity issues. Our results suggest that counties with greater crop insurance participation, especially at the intensive margin, tend to have lower landscape complexity. The finding underscores the idea that governmental policies aimed at helping farmers manage risk may inadvertently influence rural landscape diversity and sustainable agricultural systems.

Suggested Citation

  • Che, Yuyuan & Aglasan, Serkan & Burchfield, Emily K. & Rejesus, Roderick M., 2025. "The Impact of Crop Insurance Participation on Landscape Complexity," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360700, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:360700
    DOI: 10.22004/ag.econ.360700
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    File URL: https://ageconsearch.umn.edu/record/360700/files/75173_94736_105300_Insurance_and_landscape_AAEA2025.pdf
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