THE OGALLALA AQUIFER PROVIDES A VALUABLE INPUT FOR AGRICULTURE ACROSS EIGHT US STATES. TO STEM AQUIFER DEPLETION, BOTH FEDERAL AND LOCAL POLICYMAKERS HAVE DEDICATED SUBSTANTIAL RESOURCES TO CONSERVING GROUNDWATER. THE US GOVERNMENT ALSO SPENDS MORE THAN $10 BILLION PER YEAR ON CROP INSURANCE POLICIES AND THERE IS LITTLE CONSENSUS ON THE IMPACT THIS HAS ON GROUNDWATER USE IN THE REGION. THIS RESEARCH PROPOSES TO INVESTIGATE THE MECHANISMS THROUGH WHICH CROP INSURANCE AFFECTS GROUNDWATER USE IN THE OGALLALA REGION TO EXPLORE THE EMPIRICAL RELATIONSHIP BETWEEN CROP INSURANCE AND GROUNDWATER USE. THE PROJECT TEAM WILL INVESTIGATE THE ROLE OF CROP INSURANCE USING COUNTY-, FIELD-, AND WELL-LEVEL DATA ON CROP CHOICES, INSURANCE COVERAGE, AND GROUNDWATER PUMPING VOLUMES. FIRST, A DYNAMIC MODEL WILL REVEAL THE MECHANISMS THROUGH WHICH CROP INSURANCE COVERAGE AFFECTS WATER USE OVER TIME. NEXT, THE RESEARCHERS WILL PRODUCE FIELD LEVEL DATA ON GROUNDWATER USE IN THE STUDY REGION FROM 1984 TO THE PRESENT. OBJECTIVE 3 WILL QUANTIFY THE IMPACT OF CROP INSURANCE ON PLANTING AND WATER USE DECISIONS ACROSS THE OGALLALA. WITH ACCESS TO FIELD LEVEL CROP INSURANCE DATA THROUGH THE ERS, THE RESEARCHERS WILL INVESTIGATE THE IMPACT OF GROUNDWATER RESTRICTIONS AND LIMITED IRRIGATION COVERAGE ON CROP INSURANCE ENROLLMENT, CROP CHOICE, AND WATER USE (OBJECTIVE 4), FINALLY, CROP INSURANCE IMPACTS ON IRRIGATION RESPONSES TO WEATHER SHOCKS WILL BE QUANTIFIED (OBJECTIVE 5). RESULTS OF THE PROPOSED RESEARCH WILL INFORM THE DESIGN OF CROP INSURANCE POLICIES AS WELL AS GROUNDWATER MANAGEMENT STRATEGIES THAT ACCOUNT FOR THE INCENTIVES PROVIDED BY CROP INSURANCE.