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

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.