Impact of global warming on agricultural product markets: stochastic world food model analysis

Climatic change through global warming and drought is a major issue for agricultural production. Most researchers who discuss the effects of such changes on agriculture report estimated yield changes based on crop process models. However, studies focusing on the impact of climatic change on agricultural product markets are very rare. This paper examines the relationship between climatic change and world food markets, i.e., the supply and demand of crops, by using a stochastic version of a world food model, the International Food and Agricultural Policy Simulation Model. The results suggest that variations in the production of maize and soybeans in some major producing countries will be large, and variations in the producer prices of all crops will increase. Countries that suffer higher price risk because of high sensitivity to temperature fluctuations may need to consider changes in cropping patterns.