Cover crops as climate insurance: Exploring the role of crop insurance discounts to promote climate adaptation and mitigate risk.

Climate adaptation is vital for agriculture to manage the growing risks from more frequent droughts, floods, and extreme heat. Yet, adaptation measures remain underused in some of the most agriculturally productive regions, such as the U.S. Cornbelt. Cover crops represent a growing but still underutilized adaptation measure that offers co-benefits to farmers and society. In this study we examine farmers' perceptions of cover crops as a climate adaptation tool and explore the potential for integrating cover crops into existing crop insurance. We surveyed 1023 farmers in Illinois, Indiana, and Iowa to examine what factors shape cover crop acreage, intensity (percent of farm with cover crops), and farmers' future cover crop plans through negative binomial and ordered logit regression models. In addition, we explored farmers' views on policy changes to incorporate the use of cover crops into crop insurance decisions. We found that farmers largely do not perceive extreme weather as a factor in their cover crop decisions, but they do see cover crops as effective in mitigating some impacts of extreme weather. Nearly twice as many farmers reported neutral or improving cash crop yields following cover crops as those who reported declining cash crop yields. Perceptions of negative cash crop yield responses correlated to fewer acres, lower intensities, and plans for fewer cover crops, while positive yield responses only predicted plans to increase cover crops. Program enrollment, self-efficacy, and reduced tillage were all associated with higher cover crop intensities, acres, and plans. Farm size was positively correlated with more acres of cover crops but also lower intensities. Farmers were interested in crop insurance discounts and carbon markets as policy instruments but ranked cost-share programs as their top option overall. Future research should further explore the link between training, experience, and financial costs to inform what policy instruments will most effectively support scaling up cover crop adoption.