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Description

Agriculture is a risky enterprise because of its dependence on climatic conditions, and the time lag between decision-making and actualizing returns for the enterprise. The Federal Crop Insurance Program is an institutional mechanism through which the government helps farmers cope better with risks by providing subsidies on premiums. Farmers that adopt crop insurance can share the loss incurred with others in the same area with other adopters. Farmers face lots of climate-induced risks such as droughts, floods, hurricanes, wildfires, etc. Farmers in the southeastern US are prone to hurricanes that have increased in severity and frequency due to climate change. We contribute to providing information on the adoption of the Hurricane Index Protection- Wind Index (HIP-WI) Program by using data from Risk Management Agency for information on the policy to quantify adoption levels in States affected by hurricanes. We examined variabilities to identify areas of needed interventions and the results showed that states like North Carolina (13.6%) and Florida (3.9%) have experienced reduction in adoption rates while the adoption rate for Georgia has by 43.29%. This study suggests that more educational and extension intervention programs should be made available to the affected regions with low adoption rates.

Publication Date

4-1-2025

Keywords

Risk Management, Climate Change, Resilience, Adoption, Subsidy

Bolstering Resilience and Adaptation to Climate Change Among Farmers in Hurricane-Prone Areas in United States

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