According to the second graph in Figure 2.2, in Australia the income coefficient of variation is initially reduced as the farmer insures more land, but it starts to increase if the farmer insures more than half of his land. This crowding-out effect of insurance on diversification strategies is confirmed in the third graph of the figure, with reductions of 4% in the diversification index. As seen, the income variability continuously increases as the farmer insures more land in the UK because the stronger crowding out effects always dominate insurance effects.