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Adaptation to climate change via adjustment in land leasing: Evidence from dryland wheat farms in the U.S. Pacific Northwest

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  • Zhang, Hongliang
  • Mu, Jianhong E.
  • McCarl, Bruce A.

Abstract

Land leasing is a possible climate adaptation where risk is shared. We investigate how climate affects dryland wheat farmland rental patterns in the U.S. Pacific Northwest. Using farm-level agricultural census data, we study the relationships between climate and leasing arrangements. We find that increases in precipitation reduce leased land and increase the use of cash-rent leases, while increases in precipitation variability reduce the prevalence of cash-rent leases. Using medium and high greenhouse-gas emission-based climate projections we predict that, by 2050, leased acreage will decline by 23% and, respectively 29%.

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  • Zhang, Hongliang & Mu, Jianhong E. & McCarl, Bruce A., 2018. "Adaptation to climate change via adjustment in land leasing: Evidence from dryland wheat farms in the U.S. Pacific Northwest," Land Use Policy, Elsevier, vol. 79(C), pages 424-432.
    • Handle: RePEc:eee:lauspo:v:79:y:2018:i:c:p:424-432
    DOI: 10.1016/j.landusepol.2018.07.030
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    Cited by:

    1. Hasan, M. Mehedi & Alauddin, Mohammad & Rashid Sarker, Md. Abdur & Jakaria, Mohammad & Alamgir, Mahiuddin, 2019. "Climate sensitivity of wheat yield in Bangladesh: Implications for the United Nations sustainable development goals 2 and 6," Land Use Policy, Elsevier, vol. 87(C).
    2. Adewale Henry Adenuga & Claire Jack & Ronan McCarry, 2021. "The Case for Long-Term Land Leasing: A Review of the Empirical Literature," Land, MDPI, vol. 10(3), pages 1-21, March.
    3. Arnold, Chelsea & Yu, Jisang & Taylor, Mykel & Palm-Forster, Leah H. & Banjeree, Simanti, 2023. "The Role of Risk in Farmland Contract Choices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(2), May.

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    More about this item

    Keywords

    Land leasing; Climate change; Adaptation; Agriculture; Wheat; Rental contract;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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