The Impact of the 1936 Corn-Belt Drought on American Farmers’ Adoption of Hybrid Corn

Richard Sutch ()
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Richard Sutch: Department of Economics, University of California Riverside

No 201002, Working Papers from University of California at Riverside, Department of Economics

Abstract: The severe drought in 1936 revealed an advantage of hybrid corn not previously recognized – its drought tolerance. This revealed ecological resilience motivated some farmers to adopt hybrids despite their commercial unattractiveness in normal years. That response to climate change had a tipping effect. The increase in sales of hybrid seed in 1937 and 1938 financed research at private seed companies that led to new varieties with significantly improved yields in normal years. This development provided the economic incentive for late adopters to follow suit. Because post-1936 hybrid varieties conferred advantages beyond improved drought resistance, the negative ecological impact of the devastating 1936 drought had the surprising, but beneficial, consequence of moving more farmers to superior corn seed selection.

Pages: 42 pages
Date: 2010-01, Revised 2010-01
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Persistent link: https://EconPapers.repec.org/RePEc:ucr:wpaper:201002

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