Abstract: | As crop losses from hail continue to rise, farmers increasingly rely on crop-hail insurance to mitigate the effects of hail damage. This paper examines a series of socio-economic and psycho-dynamic factors that affect the adoption decision in a relatively homogeneous agricultural region in central Illinois. The very high rates of insurance adoption found in the area indicate that adoption is based on the perceived existence of a hazard, satisfaction with insurance and its availability at acceptable costs, and the perceived lack of alternative adjustments. |