Farmers will be 20% more willing to pay for crop insurance if climate change predictions are correct and crop variability increases by the predicted 20%.
Researchers from University of Western Australia interviewed a cross section of Western Australia farmers, finding a clear demand for extensive insurance policies against fire, hail, drought, flooding and frost.
Despite this companies don’t offer Multi-Peril Crop Insurance(MPCI) and government assistance remained limited due to the belief in “moral hazard”, that farmers will be less prudent if they are insured.
Read more at The University of Western Australia