Small farmer here, no crop insurance on my scale. Definitely agree with the comments about harboring disease and pests, though.
Another factor is weed growth. They are faster than vegetables. Letting a field go means taller weeds, which make harvesting harder, quality worse, and field clean up difficult, in addition to producing many more seeds for next year.
Turning in a failed crop gives you the oppurtunity to plant cover crops that hold the soil together more effectively than weeds, sequester nutrients, and are easier to turn in come planting time.
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