James Rising has a new working paper Weather-driven adaptation in perennial crop systems:An integrated study of Brazilian coffee yields, demonstrating how farmers in Brazil cope with changing environmental conditions by altering the portfolio of coffee crops they maintain. The analysis develops a novel structural Bayesian modeling approach that embeds reduced form modeling estimates, allowing James to solve (for the first time) the well-known "problem with perennials", i.e. the fact that analysts and policy-makes cannot generally observe the number of long-live plants (perennials) that farmers maintain on a farm. The analysis is important because it demonstrates how farmers cope with a changing climate by changing their investment decisions, sometimes amplifying the economic impact of changes in climate.
