Economic Assessment of Climate Adaptation Options in Myanmar Rice-Based Farming System

Agriculture is highly sensitive to climate change and understandings how the adaptation options improve the farming household’s adaptive capacity are critical to the agricultural policies. The study was carried out for the economic assessment of climate adaption options in rice-based farming system of Myanmar. The propensity score matching approach was applied to explore the existing adaptation options and its contribution on the farm income. In addition, the binary probit model was used to analyse the factors influencing those adaptation decisions. The erratic rainfall, especially dry spell period and unexpected rain during the critical crop growth, was the critical challenge of rice-based farming in the study. The timely operation of farm machineries was one of the major adaptation options for the farmers, followed by other options such as use of more agrochemicals and changing rice varieties including early maturity, high yielding and stress tolerant varieties. The combination of those adaptations gave additional 0.86-0.89 ton/ha yield, 152-158 USD/ha total return and 108-124 USD/ha profit to the adapter farmers. The institutional factors such as irrigation access, access to credit, access to weekly weather information and participation to agricultural training were critically important to the adaptation decision. Moreover, the social capital factors like farming experience, farm size and farm income share were also major influencing variables.