2023/10/12 by Serkan Aglasan, Roderick M. Rejesus, Stephen Hagen +1 · 55 citations
Agricultural and Biological Sciences · Environmental Science · #Agricultural economics #Agricultural risk and resilience #Agriculture #Agroforestry #Agronomy #Climate change #Climate change impacts on agriculture #Cover crop #Crop #Crop insurance #Crop yield #Econometrics #Economics #Endogeneity #Environmental science #Extreme weather #Forestry #Geography #Hydrology and Drought Analysis #Natural resource economics #Panel data #Psychological resilience #Resilience (materials science)
paper · pdf · doi:10.1111/ajae.12431
published in American Journal of Agricultural Economics 106(4), 1410-1434 (Wiley)
openalex publication_date 2023/10/12 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/25
Abstract This study investigates whether cover crop adoption reduces extreme‐weather‐related crop insurance losses. To achieve this objective, we utilize a county‐level panel data set with information on cover crop adoption acres, crop insurance losses (i.e., specifically due to drought, excess heat, or excess moisture), and a number of weather variables. The data cover the main row crop production region in the Midwestern United States (US) for the period 2005 to 2018. We utilize linear fixed effects econometric models and a number of robustness checks in the empirical analysis (i.e., a fractional regression approach, two “external‐instrument‐free” estimation procedures, and a variety of alternative empirical specifications). The estimation methods used take advantage of the panel nature of the data to address various specification and endogeneity issues. We find evidence that counties with higher cover crop adoption tend to have lower crop insurance losses due to drought, excess heat, or excess moisture. Our analysis also indicates that cover crops likely have stronger loss mitigation effects against excess moisture events (like floods) and somewhat weaker loss mitigation impacts against droughts and excess heat. Nonetheless, our results overall suggest that cover crops can enhance resilience to extreme weather events and have the potential to be an effective climate change adaptation strategy in US agriculture.