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

Author

Listed:
  • 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.

Suggested Citation

  • Yu, Tian & Babcock, Bruce A., 2010. "Are U.S. Corn and Soybeans Becoming More Drought Tolerant?," Staff General Research Papers Archive 32098, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:32098
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    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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