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

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  • Yu, Tian
  • Babcock, Bruce A.

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.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 32098.

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Date of creation: 15 Nov 2010
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Publication status: Published in American Journal of Agricultural Economics 2010, vol. 92, pp. 1310-1323
Handle: RePEc:isu:genres:32098

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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Keywords: corn; crop insurance rates; drought tolerance; soybean; yield risk;

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  1. O'Brien, Daniel & Hayenga, Marvin L. & Babcock, Bruce A., 1996. "Deriving Forecast Probability Distributions of Harvest-Time Corn Futures Prices," Staff General Research Papers 5234, Iowa State University, Department of Economics.
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Cited by:
  1. Xiaodong Du & David A. Hennessy & Cindy L. Yu, 2012. "Testing Day's Conjecture that More Nitrogen Decreases Crop Yield Skewness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 225-237.
  2. Du, Xiaodong & Hennessy, David A. & Yu, Cindy L. & Miao, Ruiqing, 2012. "Geography of Crop Yield Skewness," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124748, Agricultural and Applied Economics Association.
  3. Leister, Amanda M. & Lee, John G. & Paarlberg, Philip P., 2013. "Dynamic Effects of Drought on the U.S. Livestock Sector," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149946, Agricultural and Applied Economics Association.
  4. Adhikari, Shyam & Knight, Thomas O. & Belasco, Eric J., 2012. "Evaluation of Crop Insurance Yield Guarantees and Producer Welfare with Upward-Trending Yields," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), December.

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