Does crop insurance influence crop yield impacts of warming temperatures? A farm‐level analysis

Abstract

We examine the effects of the federal crop insurance program on crop production under extreme heat using farm‐level data from Kansas. We find that insured dryland corn is 38% more sensitive to extreme heat than uninsured dryland corn. Results also suggest that a uniform C warming scenario leads to yield reductions of 16.7% (11.8%) for insured (uninsured) corn production; and 6.0% (4.4%) for insured (uninsured) wheat production. Warming had a stronger impact with reduced rainfall, especially on insured farms compared with uninsured farms, while altered growing seasons showed potential benefits for wheat but limited improvements for corn.