He then drops the wolf off with the cabbage and finally comes back for the goat. This includes providing subsidies for livestock feed.
I can think of two reasons for this. Because this is a thought experiment, there's no difference between us other than how we act. This is like building part of a brick wall against people who only contribute a little to the digging.
Such insurance, if done well, could provide farmers with better protection from climate risk, while also supporting adaptation and productivity growth — effectively sidestepping our current drought policy dilemma.
For a while I thought the farmer's dilemma was a standard name, but I can't find anything about it online. Farmers must therefore be more conservative about financing and operating their businesses, which constrains investment, innovation and ultimately productivity.