Climate Change and Agriculture: Subsistence Farmers' Response to Extreme Heat

This paper examines how subsistence farmers respond to extreme heat. Using microdata from Peruvian households, we find that high temperatures reduce agricultural productivity, increase area planted, and change crop mix. These findings are consistent with farmers using input adjustments as a short-term mechanism to attenuate the effect of extreme heat on output. This response seems to complement other coping strategies, such as selling livestock, but exacerbates the drop in yields, a standard measure of agricultural productivity. Using our estimates, we show that accounting for land adjustments is important to quantify damages associated with climate change.

Automated summary

When facing extreme heat, subsistence farmers respond by adjusting inputs to mitigate the impact on output, which complements other coping strategies. However, this response may exacerbate the drop in yields, affecting agricultural productivity. Accounting for land adjustments is crucial in quantifying damages associated with climate change.