Crop Insurance’s Role in Farm Solvency

By design, crop insurance is well suited to cover temporary or short-term adverse financial conditions for America’s farms. Farmers purchase crop insurance annually to cover losses as a result of either adverse growing conditions or price declines. This study examines the degree to which crop insurance may support farmers’ ability to meet long-term financial obligations. We explore the link between crop insurance coverage and farm solvency using a panel of farm records from 1995 – 2014