IDEAS home Printed from https://ideas.repec.org/p/ags/sdsusp/32028.html
   My bibliography  Save this paper

Examining Economic Impact And Recovery In South Dakota From The 2002 Drought

Author

Listed:
  • Diersen, Matthew A.
  • Taylor, Gary

Abstract

During the 2002 drought, farm sector economic factors were monitored to assess the likely statewide economic impacts. Timely moisture during the spring of 2003 resulted in a sizeable wheat harvest relative to recent years. Prices in the fall of 2003 resulted in a sizeable wheat harvest relative to recent years. Prices in the fall of 2003 have also been significantly higher for cattle and soybeans compared to prices in recent years. As a result, there have been inquiries as to the extent of economic recovery in the farm sector of South Dakota. The purpose of this paper is to outline the estimation procedure used to assess the drought in 2002, validate the extent of the impact, and discuss potential mitigating effects observed during 2003. The results suggest the direct costs to the farm sector in 2002 can best be described using a range of $650-800 million. The improved market conditions in 2003 would offset a portion of those losses at the state level. While the offset estimate is $477 million, a range of $375-550 million would better encompass the scope of the impact. Finally, while the aggregate farm sector will benefit in 2003, winter wheat and cow-calf producers most adversely affected by the drought will likely need additional time to recover.

Suggested Citation

  • Diersen, Matthew A. & Taylor, Gary, 2003. "Examining Economic Impact And Recovery In South Dakota From The 2002 Drought," Economics Staff Papers 32028, South Dakota State University, Department of Economics.
    • Handle: RePEc:ags:sdsusp:32028
    DOI: 10.22004/ag.econ.32028
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/32028/files/sp03-08.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.32028?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Le Roy, Danny G. & Klein, Kurt K., 2003. "Say Hay And Hay West: Charity, Government And Farmer Responses To The 2002 Drought In Western Canada," Western Economics Forum, Western Agricultural Economics Association, vol. 2(1), pages 1-6.
    2. Morehart, Mitchell J. & Gollehon, Noel R. & Dismukes, Robert & Breneman, Vincent E. & Heimlich, Ralph E., 1999. "An Economic Assessment of the 1999 Drought: Agricultural Impacts Are Severe Locally, but Limited Nationally," Agricultural Information Bulletins 33655, United States Department of Agriculture, Economic Research Service.
    3. Marcel A.P.M. van Asseldonk & Miranda P.M. Meuwissen & Ruud B.M. Huirne, 2002. "Belief in Disaster Relief and the Demand for a Public-Private Insurance Program," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 196-207.
    4. Jason Henderson & Nancy Novack, 2003. "Will rains and a national recovery bring rural prosperity?," Economic Review, Federal Reserve Bank of Kansas City, vol. 88(Q I), pages 77-96.
    5. Tronstad, Russell & Feuz, Dillon M., 2002. "Impacts Of The 2002 Drought On Western Ranches And Public Land Policies," Western Economics Forum, Western Agricultural Economics Association, vol. 1(2), pages 1-6.
    6. Tobias Madden, 2003. "Agricultural conditions mixed in third quarter," Fedgazette, Federal Reserve Bank of Minneapolis, vol. 15(Jan), pages 18-19.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kim, Taeyoon & Kenkel, Philip L., 2008. "The Impact of Drought on Grain Handling Firms," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6844, Southern Agricultural Economics Association.
    2. Jaume Freire-González & Christopher A. Decker & Jim W. Hall, 2017. "A Scenario-Based Framework for Assessing the Economic Impacts of Potential Droughts," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(04), pages 1-27, October.
    3. White, Cody & Vassalos, Michael & Smith, Nathan, 2018. "Estimating the Overall Economic Loss to the South Carolina Peach Industry due to the March 2017 Freeze," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266717, Southern Agricultural Economics Association.
    4. Burton C. English & S. Aaron Smith & R. Jamey Menard & David W. Hughes & Michael Gunderson, 2021. "Estimated Economic Impacts of the 2019 Midwest Floods," Economics of Disasters and Climate Change, Springer, vol. 5(3), pages 431-448, October.
    5. K. Jenkins, 2013. "Indirect economic losses of drought under future projections of climate change: a case study for Spain," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 69(3), pages 1967-1986, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul Raschky & Hannelore Weck-Hannemann, 2007. "Charity hazard - A real hazard to natural disaster insurance," Working Papers 2007-04, Faculty of Economics and Statistics, Universität Innsbruck.
    2. Di Falco, Salvatore & Capitanio, Fabian & Adinolfi, Felice, 2011. "Natural Vs Financial Insurance in the Management of Weather Risk Exposure in the Italian Agriculture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114325, European Association of Agricultural Economists.
    3. Diersen, Matthew A., 2008. "Hay Price Forecasts at the State Level," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37600, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    4. Paul Raschky & Reimund Schwarze & Manijeh Schwindt & Ferdinand Zahn, 2013. "Uncertainty of Governmental Relief and the Crowding out of Flood Insurance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(2), pages 179-200, February.
    5. Enjolras, Geoffroy & Sentis, P., 2008. "The Main Determinants of Insurance Purchase: An Empirical Study on Crop Insurance Policies in France," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44395, European Association of Agricultural Economists.
    6. Diersen, Matthew A., 2008. "Hay Price Forecasts at the State Level," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37600, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    7. Mafoua, Edouard & Turvey, Calum G., 2004. "Effects Of Weather Events On Loss Ratios For Crop Insurance Products: A County-Level Panel Data Analysis," 2004 Annual meeting, August 1-4, Denver, CO 20113, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Sporri, Martina & Baráth, Lajos & Bokusheva, Raushan & Ferto, Imre, 2012. "The Impact of Crop Insurance on the Economic Performance of Hungarian Cropping Farms," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122525, European Association of Agricultural Economists.
    9. Heidelbach, Olaf, 2007. "Efficiency of selected risk management instruments: An empirical analysis of risk reduction in Kazakhstani crop production," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 40, number 92323.
    10. Cordeiro, M.R.C. & Mengistu, G.F. & Pogue, S.J. & Legesse, G. & Gunte, K.E. & Taylor, A.M. & Ominski, K.H. & Beauchemin, K.A. & McGeough, E.J. & Faramarzi, M. & McAllister, T.A., 2022. "Assessing feed security for beef production within livestock-intensive regions," Agricultural Systems, Elsevier, vol. 196(C).
    11. M.A.P.M. van Asseldonk & H.B. van der Veen & H.A.B. van der Meulen, 2010. "Retirement planning by Dutch farmers: rationality or randomness?," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 70(3), pages 365-376, November.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:sdsusp:32028. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/edsdsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.