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Are U.S. Corn and Soybeans Becoming More Drought Tolerant?

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  • Yu, Tian
  • Babcock, Bruce

Abstract

The hypothesis that corn and soybeans have become more drought tolerant is tested by regressing county yields on a drought index and time. Results indicate that corn yield losses from drought of a given severity, whether measured in quantity terms or as a percentage of mean yields, have decreased over time. Soybean percentage yield losses have also declined, but absolute losses have remained largely constant. The potential impact of increased drought tolerance on U.S. crop insurance rates is illustrated by comparing Group Risk Plan premium rates assuming time-invariant susceptibility to drought with rates generated from this article’s regression results.

Suggested Citation

  • Yu, Tian & Babcock, Bruce, 2010. "Are U.S. Corn and Soybeans Becoming More Drought Tolerant?," ISU General Staff Papers 201010210700001520, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201010210700001520
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    References listed on IDEAS

    as
    1. Daniel O'Brien & Marvin Hayenga & Bruce Babcock, 1996. "Deriving Forecast Probability Distributions of Harvest-Time Corn Futures Prices," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(2), pages 167-180.
    2. Jerry R. Skees & J. Roy Black & Barry J. Barnett, 1997. "Designing and Rating an Area Yield Crop Insurance Contract," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 430-438.
    3. Arellano, M, 1987. "Computing Robust Standard Errors for Within-Groups Estimators," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(4), pages 431-434, November.
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    More about this item

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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