Geographical Diversification in Agriculture: An Applied Case to Western U.S. Wheat Growers

Yield correlations between 380 different counties are calculated for non-irrigated wheat. Using this data, a function is estimated that shows the relationship between correlation and changes in geographic and climate data. In addition movement variables are included added to the specification to capture the impact of moving from one production region to another. A negative relationship was found between changes in latitude, longitude, precipitation, elevation, and temperature. Correlations and longitude and precipitation showed downward sloping concave relationship, whereas correlations and latitude showed downward sloping convex relationships. Changes in latitude and longitude are found to have greatest impact on correlation with elasticities of -1.54 and -1.

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 Record created 2017-04-01, last modified 2020-10-28

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