The impact of drought on agricultural production in Spain

Isabel Molina Vileya and Matías J. Pacce
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Isabel Molina Vileya: Banco de España
Matías J. Pacce: Banco de España

Economic Bulletin, 2025, issue 2025/Q2, No 07

Abstract: Rationale Climate change could exacerbate the magnitude and frequency of extreme weather events, increasingly affecting crop yields. This article analyses the effects of drought on the production of a selection of key crops for Spanish agriculture. Takeaways •Granular climate data and province-level data on agricultural land and production are used for the period 2000-23 to estimate the relationship between drought and the yields of a selection of crops in Spain. •The results obtained show that the adverse impact of water scarcity on crop yields differs across crops. Specifically, the impact was found to be greater on wheat, barley and olives (largely rainfed crops) than on oranges and maize (predominantly irrigated crops). •In 2022 and 2023, Spain experienced prolonged periods of water scarcity. This is estimated to have reduced wheat and barley yields by between 20% and 30%, on average, and olive yields by at least 10%.

Keywords: Drought; crop yields; agricultural production; SPEI (search for similar items in EconPapers)
JEL-codes: C33 Q15 Q18 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bde:journl:y:2025:i:02:n:07

DOI: 10.53479/39768

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