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Impacts of Increased Climate Variability on the Profitability of Midwest Agriculture

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  • Dixon, Bruce L.
  • Segerson, Kathleen

Abstract

Approximate profit functions are estimated using time-series, cross-sectional, county level data for 12 midwest states. Measures of climate variability are included in the profit functions. Simulated impacts of climate changes on profits are derived. Results show that inclusion of measures of climate variation are important for measuring the impact of changes in mean temperature and precipitation levels. Failure to account for the impact of differences in variability leads to an overestimate of damages. If global warming increases diurnal variation, such increases would have negative impacts on the profitability of midwest agriculture.

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  • Dixon, Bruce L. & Segerson, Kathleen, 1999. "Impacts of Increased Climate Variability on the Profitability of Midwest Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 31(3), pages 537-549, December.
    • Handle: RePEc:cup:jagaec:v:31:y:1999:i:03:p:537-549_00
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    2. Anthony Baffoe‐Bonnie & Genti Kostandini, 2019. "Annual and cropping season environmental production conditions effects on smallholder technical efficiency in sub‐Saharan Africa: Evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 50(6), pages 779-791, November.
    3. Garcia, Maria & Viladrich-Grau, Montserrat, 2009. "The economic relevance of climate variables in agriculture: The case of Spain," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 9(02), pages 1-32.
    4. Liu, Menglin, 2022. "The effect of conservation tillage on corn and soybean yields in the US Corn Belt: a Post-Double-Selection method," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322417, Agricultural and Applied Economics Association.
    5. Kanakasabai, Murali & Dillon, Carl R., 2004. "Potential For Farm Adaptation To Global Climatic Change In Kentucky," 2004 Annual meeting, August 1-4, Denver, CO 20422, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Paul J. Block & Kenneth Strzepek & Mark W. Rosegrant & Xinshen Diao, 2008. "Impacts of considering climate variability on investment decisions in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 171-181, September.
    7. Deal, John, 2006. "The Relationship Between Economically and Environmentally Marginal Land," 2006 Annual meeting, July 23-26, Long Beach, CA 21119, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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