Impact of Climate Change and Weather Variability on North Dakota Agriculture

Abstract

This study used county-level yields and panel data (1950-2006) to explain the Impact of climate change and weather variability on North Dakota agriculture by estimating the effect of variation in temperature and precipitation on the yields of four major crops: com, durum, soybeans and wheat. In addition to yields, the study examined Impacts of climate change on crop gross revenues per acre for all 53 counties in North Dakota. An econometric model was developed to infer statistical relationships between weather variability and crop yields. Fixed and random effects models were employed to estimate the impacts of climate variables (temperature and precipitation) on crop yields. The Hausman test statistics was applied to test the preferred panel estimation approach: fixed versus random effects. Using mean values of precipitation and degree days for all counties, we calculated percentage changes in estimated crop yields for six climate change scenarios. The historical price data for the four crops (com, soybeans, spring wheat and durum) were used to generate per acre gross returns under the six weather-change scenarios in order to provide preliminary evidence about the effects of precipitation and temperature changes on farmer returns for the four crops.