Demand for Crop Insurance by Organic Corn andSoybean Farmers in Three Major Producing States

A survey of organic grain and oilseed producers in Iowa, Minnesota and Wisconsin wasconducted to collect information about their demographic characteristics, production and pricerisk management strategies, yields and losses, and crop insurance decisions. The data areanalyzed using a discrete choice model to establish which variables influence organicproducers’ decision of whether to purchase crop insurance and also which ones affect theinsurance product choice when applicable. The study describes the risk profiles of organicproducers, and analyzes whether significant variations exist between organic and conventionalmethods of production so as to quantitatively determine the differential production riskassociated with organic production. This research may contribute to the design of an organiccrop insurance policy in which organic producers would be charged according to theiridiosyncratic production risks, rather than the arbitrary 5% blanket premium surchargecurrently in use.[...]