Nudge to insure: Can informational nudges change enrollment decisions in pasture, rangeland, and forage rainfall index insurance?

Abstract

AbstractThrough a framed field experiment with livestock farmers in the Northeast and Southeast United States, this research explores whether an informational nudge changes producers' selection of two‐month intervals and/or increases the likelihood of enrollment in pasture, rangeland, and forage (PRF) insurance. We find no evidence that a nudge influences interval choices; however, producers are more likely to enroll when PRF is framed as a risk management decision regarding forage loss. Risk aversion, familiarity with other United States Department of Agriculture livestock programs, and higher risk exposure increase the likelihood of enrollment. Past PRF and crop insurance participation decrease the amount insured during growing‐season months.