The Impact of Weather Extremes on Agricultural Production Methods: Does Drought Increase Adoption of Conservation Tillage Practices?

The paper combines panel data techniques with spatial analysis to measure the impact of extreme weather events on the adoption of conservation tillage. Zellner's SUR technique is extended to spatial panel data to correct for cross-sectional heterogeneity, spatial autocorrelation, and contemporaneous correlation. Panel data allow the identification of differences in adoption rates. The adoption of no-till, other conservation tillage, and reduced-till are estimated relative to conventional tillage. Extremely dry conditions in recent years increase the adoption of other conservation tillage practices, while spring floods in the year of production reduce the use of no-till practices.