Double or Nothing: Impacts of Warming on Crop Quantity, Quality, and Revenue
By: Ramsey, A. Ford ; Tack, Jesse B. ; Balota, Maria
Ramsey, A. Ford ; Tack, Jesse B. ; Balota, Maria, Double or Nothing: Impacts of Warming on Crop Quantity, Quality, and Revenue, Journal of Agricultural and Resource Economics, Volume 47, Issue 1, January 2022, Pages 1-22
Using a unique data set from the multistate Peanut Variety and Quality Evaluation (PVQE) program, we quantify the economic impact of projected warming on revenue of Virginia-type peanuts, for which grade and kernel size are important determinants of price. In contrast to studies for other crops, the impacts of warmer temperatures on yield and quality are symmetric and negative, resulting in acutely depressed farm revenues. Our model predicts a roughly 11% decline in revenue under warming of 1textdegree C. Gains in yield and quality from breeding could offset revenue losses under moderate warming up to 1textdegree C but are unlikely to sustain farm revenues under more extreme changes in temperature.