IDEAS home Printed from https://ideas.repec.org/p/ags/hebarc/54147.html

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

Author

Listed:
  • Yu, Tian
  • Babcock, Bruce A.

Abstract

An objective drought index that measures the dry and hot conditions adversely affecting crop yields is used in a regression analysis to test whether corn and soybeans have become more drought tolerant. Results indicate that corn yield losses, whether measured in quantity terms or as a percentage of mean yield, have decreased. The null hypothesis that the absolute level of soybean yield losses due to drought has not changed cannot be rejected. But yield losses in percentage terms have decreased over time. Because drought is the primary cause of yield loss in the U.S. crop insurance program and because U.S. crop insurance rates assume that percentage of yield losses are constant over time, these results indicate that U.S. crop insurance rates in the Corn Belt are too high.

Suggested Citation

  • Yu, Tian & Babcock, Bruce A., 2009. "Are U.S. Corn and Soybeans Becoming More Drought Tolerant?," Hebrew University of Jerusalem Archive 54147, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:54147
    DOI: 10.22004/ag.econ.54147
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/54147/files/09-WP_500.Yu-Babcock.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.54147?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
    ---><---

    Other versions of this item:

    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.
    Full references (including those not matched with items on IDEAS)

    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. repec:isu:genstf:201101010800002976 is not listed on IDEAS
    2. Demetrescu, Matei & Hosseinkouchack, Mehdi & Rodrigues, Paulo M. M., 2023. "Tests of no cross-sectional error dependence in panel quantile regressions," Ruhr Economic Papers 1041, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Jinyu Chen & Yixin Qiu & Qian Ding & Yuan Geng, 2025. "Climate transition risk and corporate environment, social and governance performance: Evidence from Chinese listed companies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(3), pages 2829-2848, July.
    4. Brice Corgnet & Roberto Hernán Gonzalez & Ricardo Mateo, 2015. "Cognitive Reflection and the Diligent Worker: An Experimental Study of Millennials," PLOS ONE, Public Library of Science, vol. 10(11), pages 1-13, November.
    5. J. Christina Wang, 2003. "Merger-related cost savings in the production of bank services," Working Papers 03-8, Federal Reserve Bank of Boston.
    6. Raventós, Pedro & Zolezzi, Sandro, 2015. "Electronic tendering of pharmaceuticals and medical devices in Chile," Journal of Business Research, Elsevier, vol. 68(12), pages 2569-2578.
    7. repec:lic:licosd:42821 is not listed on IDEAS
    8. Huy Quang Doan, 2019. "Trade, Institutional Quality and Income: Empirical Evidence for Sub-Saharan Africa," Economies, MDPI, vol. 7(2), pages 1-23, May.
    9. Kjetil Bjorvatn & Mohammad Reza Farzanegan, 2014. "Resource Rents, Power, and Political Stability," CESifo Working Paper Series 4727, CESifo.
    10. Krogmeier, Joseph L. & Wang, H. Holly, 1998. "The Possibility Of A Private Crop Insurance Market: The Theoretical Foundations," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20902, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Joshua D. Angrist & Jörn-Steffen Pischke, 2017. "Undergraduate Econometrics Instruction: Through Our Classes, Darkly," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 125-144, Spring.
    12. Kapphan, Ines, 2011. "Weather insurance design with optimal hedging effectiveness," MPRA Paper 35861, University Library of Munich, Germany.
    13. Özlem Onaran & Engelbert Stockhammer, 2006. "The effect of FDI and foreign trade on wages in the Central and Eastern European Countries in the post-transition era: A sectoral analysis," Department of Economics Working Papers wuwp094, Vienna University of Economics and Business, Department of Economics.
    14. Lee, Gemma & Masulis, Ronald W., 2009. "Seasoned equity offerings: Quality of accounting information and expected flotation costs," Journal of Financial Economics, Elsevier, vol. 92(3), pages 443-469, June.
    15. Deng, Xiaohui & Barnett, Barry J. & Hoogenboom, Gerrit & Yu, Yingzhuo & Garcia, Axel Garcia y, 2008. "Alternative Crop Insurance Indexes," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 223-237, April.
    16. Luis Alvarez & Bruno Ferman, 2020. "Inference in Difference-in-Differences with Few Treated Units and Spatial Correlation," Papers 2006.16997, arXiv.org, revised Apr 2023.
    17. Tidiane KINDA, 2010. "Increasing Private Capital Flows To Developing Countries: The Role Of Physical And Financial Infrastructure In 58 Countries, 1970-2003," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    18. Rik Chakraborti & Gavin Roberts, 2023. "How price-gouging regulation undermined COVID-19 mitigation: county-level evidence of unintended consequences," Public Choice, Springer, vol. 196(1), pages 51-83, July.
    19. Rok Spruk & Mitja Kovac, 2018. "Inefficient Growth," Review of Economics and Institutions, Università di Perugia, vol. 9(2).
    20. Özlem Onaran, 2008. "Jobless Growth in the Central and Eastern European Countries," Working Papers wp165, Political Economy Research Institute, University of Massachusetts at Amherst.
    21. Delgado-Cubillo, Pablo & Martín-Román, Ángel L., 2023. "Workers’ behavior after safety regulations: Impact evaluation of the Spanish Occupational Safety and Health Act," MPRA Paper 117284, University Library of Munich, Germany.
    22. Barnett, Barry J. & Barrett, Christopher B. & Skees, Jerry R., 2008. "Poverty Traps and Index-Based Risk Transfer Products," World Development, Elsevier, vol. 36(10), pages 1766-1785, October.

    More about this item

    Keywords

    ;
    ;
    ;

    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

    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:hebarc:54147. 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: .

    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.