Enrollment in Pasture, Rangeland, and Forage Rainfall Index Insurance: Awareness Matters

By: Goodrich, Brittney K.; Davidson, Kelly A.
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Goodrich, Brittney K.; Davidson, Kelly A., Enrollment in Pasture, Rangeland, and Forage Rainfall Index Insurance: Awareness Matters, Journal of Agricultural and Resource Economics, Volume 49, Issue 2, May 2024, Pages 311-331

Relatively little is known about producersÕ decisions to enroll in the Pasture, Rangeland and Forage Rainfall Index (PRF-RI) insurance program. By analyzing survey data from producers in the northeastern and southeastern United States, we show that assuming that producers are aware of crop insurance options leads to false inferences about enrollment decisions. Full-time producers who were more reliant on rented hay and pastureland and those who learned about PRF-RI from a crop insurance agent were more likely to enroll in PRF-RI. Livestock revenue insurance was found to be a complementary product to PRF-RI. Our study highlights the importance of targeted PRF-RI information campaigns.