Doctoral Dissertation Research in DRMS: The Role of Farm Financial Programs in Climate and Market Risks and Land Management

University Of Wisconsin-Madison, Madison WI

Investigators

Abstract

Farm financial programs are crucial for farmers’ profitability and help them adapt to climate change and market risks. These programs, which include crop insurance, agricultural loans, and conservation cost-share programs, are widely used by farmers and attract fierce discussion and debate in the U.S. Farm Bill and worldwide. They serve not only as financial tools but also as key factors in guiding farmers’ land practices toward either conservation or non-conservation management. These land practices have profound impacts on soil health, water quality, and land sustainability, which in turn influence risks to individual farmers and broader societal and environmental risks over the long term. This research illuminates two areas of farmer behavior related to the Farm Bill: (1) the decision-making processes of farmer households regarding financial programs and land practices and (2) the relationship of these financial program decisions to land practices and, subsequently, the ability to adapt to climate and market risks. This study addresses understudied complex interactions among individual decision making and risk management, social identity theory, and government financial support. The team employs both a farmer survey and in-depth interviews to gather data. The study involves a diverse range of farmers, such as those involved in row crops, forage, confinement livestock, and grass-based livestock operations, enabling comparative analysis. The study aims to deepen understanding that can bring about a reshaping of financial programs that are central to the Farm Bill. By exploring the decision-making processes of a wide variety of farmers, the project enhances knowledge of diverse agricultural systems. The findings inform policy recommendations that may contribute to food, water, and land security as well as improve the well-being of farming communities. This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.