Farm programs and climate change

The view that the agricultural sector could largely offset any negative impacts of climate change by altering production practices assumes the government will not create disincentives for farmers to adapt. US. farm programs, however, often discourage such obvious adaptations as switching crops, investing in water conserving technologies, and entry or exit. We outline a simple portfolio model describing producer decision making: we then use this framework to assess how specific U.S. farm programs might affect adaption to climate change. Three future climate scenarios are considered and in each the present structure of U.S. farm programs discourages adaptation.