Source: UNIVERSITY OF CALIFORNIA, DAVIS submitted to
THE ECONOMIC EFFECTS OF WEATHER, ADAPTATION, RESOURCE SCARCITY, AND INCENTIVES ON SPECIALTY CROP PRODUCTION
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
NEW
Funding Source
Reporting Frequency
Annual
Accession No.
1030656
Grant No.
2023-67023-40081
Project No.
CA-D-ARE-2778-CG
Proposal No.
2022-10685
Multistate No.
(N/A)
Program Code
A1641
Project Start Date
May 15, 2023
Project End Date
May 14, 2026
Grant Year
2023
Project Director
Beatty, T. K.
Recipient Organization
UNIVERSITY OF CALIFORNIA, DAVIS
410 MRAK HALL
DAVIS,CA 95616-8671
Performing Department
(N/A)
Non Technical Summary
This project supports the mission of the Agricultural Experiment Station by addressing the Hatch Act areas of (i) soil and water conservation and use, (ii) plant and animal production, protection, and health, (iii) processing, distribution, safety, marketing, and utilization of food and agricultural products, and (iv) sustainable agriculture.We will analyze the effects of weather, climate change, adaptation, and natural resource scarcity through the lens of Californian irrigated agriculture. We begin by exploring the effect of weather and climate change on specialty crop production, highly relevant to the topic area of plant production. Previous work in this literature focuses almost exclusively on the effect on quantity. But quality matters - upstream buyers value quality and so farmers are paid depending on the quality of their production. We will quantify the effect of weather and climate change on the revenue of specialty crop growers through both quantity and quality pathways. We will also measure the effects on post-harvest losses, which relates to the topic area on processing and distribution of food and agricultural products.Our analysis on specialty crops benefits from active collaboration with industry partners. We use observational data on quality, yield, price, and grower practices for thousands of fields in California. Thanks to this uniquely detailed data, we are able uncover common pitfalls that bias most estimates of climate change impacts.Against a backdrop of extreme drought, heat waves, and a changing climate, climate-smart practices are critical to improving resilience in the agriculture sector. We also ask how all irrigated crop producers in California engage with climate-smart practices. We explore how growers' characteristics, decisions, and technology adoption affect their climate resilience. This work strongly relates to the topic areas on sustainable agriculture and soil and water conservation and use.
Animal Health Component
0%
Research Effort Categories
Basic
100%
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
1320420301020%
1320430301015%
1310120301015%
6012410301050%
Goals / Objectives
We will analyze the effects of weather, climate change, adaptation, and natural resource scarcity through the lens of Californian irrigated agriculture.Our first objective is to explore the effect of weather and climate change on the revenue of irrigated specialty crop producers. While most agricultural producers are paid a price that depends on the quality of their product, prior work has largely ignored the impact of weather on quality. Failing to account for quality may lead to biased estimates of the impact of weather and climate change on farm income. We explore how growers' characteristics and decisions change their resilience to the effects of extreme weather. We study this question through the lens of California's $1 billion processing tomato industry, which produces nearly one third of the world's processing tomatoes.Our second objective is to explore econometric pitfalls that may bias most estimates of the effect of weather and climate on yield and quality in many settings. We simulate (a) selection bias from the common practice of selectively screening out low-quality products, (b) aggregation bias in county-level results from spatial averaging of weather, and (c) post-harvest bias, the effect of omitting a distinct and potentially important channel through which weather and climate change affect agricultural production. By documenting and quantifying these sources of biases, our work highlights the importance for researchers working in other settings to consider possible error in their estimation.The third objective asks how all irrigated crop producers in California engage with climate-smart practices. We will open the "black box" of adaption and quantify the economic consequences of different responses. Moreover, we explore how growers' characteristics, decisions, and technology adoption affect their climate resilience. Novel remotely-sensed data on irrigation activity gives us a unique insight into whether growers use water more efficiently.
Project Methods
Our project brings together data from many public and proprietary sources. We use observational data on quality, yield, price, and grower practices for thousands of fields in California. Gridded, daily weather data is publicly available from PRISM. We use satellite imagery on land use from the USDA's Cropland Data Layer, and new high frequency remotely sensed evapotranspiration data from OpenET to estimate irrigation. We calculate year-to-year variation in water availability using data on surface water allocations from the California Department of Water Resources and the U.S. Bureau of Reclamation.We use frontier techniques to estimate the key causal relationships of interest. Our modeling is at either the grower- or field-level, which allows us to explore grower heterogeneity. We propose to use a machine learning classification algorithm to identify the characteristics of growers who are more resilient to the effects of extreme weather and climate change.

Progress 05/15/23 to 05/14/24

Outputs
Target Audience:The target audiences of our published journal articles are researchers and academics, particularly general interest economists and agricultural economists. Our outreach publications and presentations will target agricultural producers, processors, industry, and state and federal governments. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?One goal of the grant is to train highly qualified personnel. To this end, the NIFA funds have supported the employment of a postdoctoral scholar at UC Davis. This early career researcher has been trained in new data and modelling skills and been involved in drafting manuscripts. The researcher has also had an opportunity to present the research which has provided a great opportunity for professional development and networking. How have the results been disseminated to communities of interest?Research has been presented to academics at two seminars and one conference. We plan to disseminate results to the broader agricultural industry after the manuscript has cleared the peer-review process and been accepted for publication. What do you plan to do during the next reporting period to accomplish the goals?Submit and publish the first manuscript. After acceptance, draft and circulate nontechnical companion piece for the first manuscript as outreach to growers and processors. For the second manuscript, finish a draft of the paper and continue presenting preliminary results. Incorporate feedback from academic colleagues and finalize a draft. Submit to academic journals for publication. After acceptance, draft and circulate nontechnical companion piece for the second manuscript as outreach to growers and processors. Continue data collection for the third manuscript. Begin data analysis and prepare preliminary results for presentation.

Impacts
What was accomplished under these goals? We submitted the first manuscript on the effect of weather and climate change on irrigated specialty crops for publication in a top field journal. It went out for review but was ultimately rejected for publication. We are currently implementing the reviewer feedback ahead of its submission to another journal. We have made good progress on the manuscript on sources of bias in current estimates of the effect of weather and climate change on agricultural production, particularly the impact on postharvest losses. We presented preliminary results at two seminars and a conference earlier this year and we will also present at the annual meeting of the Agricultural and Applied Economics Association in July 2024. We have begun data collection for the third manuscript on climate-smart practices and the economic consequences of different adaptation options.

Publications

  • Type: Conference Papers and Presentations Status: Published Year Published: 2023 Citation: Conference presentation at the Agricultural and Applied Economics Annual Meeting, 25 July 2023
  • Type: Conference Papers and Presentations Status: Published Year Published: 2023 Citation: Conference presentation at the European Association of Agricultural Economists Congress, 31 August 2023
  • Type: Conference Papers and Presentations Status: Published Year Published: 2024 Citation: Seminar in AERE@OSWEET online seminar series, 5 April 2024
  • Type: Conference Papers and Presentations Status: Published Year Published: 2024 Citation: Seminar to Australian National University Crawford School Arndt-Corden Department of Economics, 16 April 2024
  • Type: Conference Papers and Presentations Status: Published Year Published: 2024 Citation: Conference presentation at the Australasian Agricultural and Resource Economics Society annual meeting, 7 February 2024