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Mitigation and Adaptation Strategies for U.S. Agricultural

Businesses to Climate Change

Raphael J. Nawrotzki and Stephen Akeyo

Andrews University, Berrien Springs, MI

2009

Accepted pre-typeset version of article published as:

Nawrotzki, R. J., & Akeyo, S. (2009). Mitigation and adaptation strategies for

U.S. agricultural businesses to climate change. International Journal of

Climate Change, 1(2), 141-156.

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Mitigation and Adaptation Strategies for U.S. Agricultural

Businesses to Climate Change

Abstract

Within living memory agriculture has been the fundamental human activity for

food production to support the livelihood of everyone on earth. The human

wellbeing depends strongly on the success of the agricultural sector whereas the

agriculture’s success is linked to climate conditions that have started to change

rapidly over the last decade due to global warming. Based on recent research

studies and current literature this paper summarizes the impact of climate change

on U.S. agricultural businesses. Research show that the majority of these impacts

are negative such as increased flooding, rise in sea level, more frequent severe

storms, droughts, heat-waves, and related effects on animal health, pests and plant

diseases. Also, few positive effects are reported like increased plant growth rate

because of warmer temperatures, longer growing seasons, carbon dioxide

fertilization effect, and enhanced water availability.

However, the main purpose of this paper is to identify ways to respond to these

issues of climate change. Thus, two ways are discussed: 1. Mitigation of climate

change impacts by reducing carbon dioxide emission through the use of bio-fuels

from agricultural products and refeeding of atmospheric carbon subsurface by

carbon sequestration (biotic and abiotic). 2. Adaptation to occurring climate

change in a proactive way through mechanisms such as knowledge and learning,

improvement of risk and disaster management, infrastructure development,

institutional design and reform, public policy, and technological innovation.

Stopping climate change may be difficult or impossible. However, it is the

objective of this paper to show that there are ways to adapt so that adverse

impacts can be reduced or even reversed.

Keywords

Climate Change, Global Warming, Agriculture, Carbon Dioxide Effect on Weeds,

Plant Diseases, Drought, Heat Waves, Hurricanes and Severe Storms, Floods, Sea

Level Rise, Carbon Dioxide Fertilization, Mitigation, Bio-Fuel, Soil Carbon

Sequestration, Proactive Adaptation, Infrastructure Development, Institutional

Reform, Climate Policies, Technology Innovation

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Mitigation and Adaptation Strategies for U.S. Agricultural

Businesses to Climate Change

1 Introduction

During the last few years the frequency of natural disasters and their intensity

has steadily increased due to climate change (Hoeppe & Gurenko, 2006).

According to Webster et al. (2005) climate change has caused a substantial

increase in the proportion of the most severe storms. In North America the

impacts of this increase were especially felt in August 2005 as hurricane Katrina

made landfall along the north-central Gulf Coast (Travis, 2005). In New Orleans

and Louisiana the impact of this tornado was serious as more than 1500 of

Louisiana residents lost their live (Brunsma, Overfelt & Picou, 2007). Further,

climate change has lead to an increase in precipitation which resulted in more

flood events (Christensen et al., 2007). For example in June 2008 flooding caused

major problems in the American Midwest leading to twenty-four deaths and

significant economic damage (Galloway, 2008). In other regions of North

American a decrease in precipitation was recorded (Seager, 2007). Just recently,

on July 2008, North Carolina was suffering from a severe drought (DeOrnellas,

2008).

If the scientific Global Climate Models (GCMs) are valid, the current climate-

related problems will be further magnified in the near future (Hoeppe & Gurenko,

2006).The global warming trends and the weather-related events will also affect

the biophysical processes of photosynthesis and respiration, the regional

infestations of weeds, insects, and diseases, and indeed the entire thermal and

hydrological regimes (Rosenzweig, Iglesias, Yang, Epstein, & Chivian, 2001)..

Climate change is a multi-dimensional issue that will in one way or another affect

all people and businesses in North America. However, one sector is particularly

vulnerable to these changes: the agricultural sector.

The vulnerability of North American’s agriculture to climatic change raises

many questions with regard to the diversity, magnitude, and location of climate

change impacts. These issues will be addressed in a balanced approach by

presenting negative as well as positive implications. In the second part mitigation

will be discussed, and proactive adaptation will be presented as the ultimate

solution to address climate change issues.

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2 Impacts of Climate Change on the U.S. Agriculture Sector

Many areas of the agricultural sector interface directly with the environment

and the prevalent climate conditions. Thus, the dependency on natural resources

and environmental conditions makes the agriculture sector particularly vulnerable

to the slightest changes. According to Field et al. (2007) North America has

experienced locally severe economic damage from recent weather-related

extremes, including hurricanes, severe storms, floods, droughts, heat-waves, and

wildfires.

2.1 Negative Impacts

Effects of Increased CO2 Concentration

The increase of carbon dioxide (CO2) in the atmosphere is seen as the major

cause for global warming (Staunt, Huddleston & Kraucunas, 2008). Some

simulations predict that within the next 30 years the atmospheric CO2

concentration will rise about 60 ppm, from today’s 380 ppm to about 440 ppm

(Hatfield et al., 2008). Elevated atmospheric CO2 concentration has different

negative effects.

Effect on weeds

Lewis Ziska and his colleagues at the U.S. Agriculture Research Service

found that weeds benefit far more from elevated CO2 concentrations than crop

plants. Tests with common agricultural weeds like Canada thistle and Quack-grass

found that they grow faster, produce more pollen, and were more resistant to

herbicides when grown at higher concentrations of CO2 (Christopher, 2008; Ziska

and George, 2004). Therefore, an indirect problem resulting from climate change

will be higher costs for anti-weed treatment to protect the crops (Ziska, 2008).

Further problems may arise from invasive weed species. For example Cheat-

grass (originated in central Asia) has displaced more nutritious native grasses with

negative implications for the nutrition uptake of grazing cattle. Moreover, Cheat-

grass has a higher combustibility compared to native grasses which will further

stoke rangeland wildfires (Christopher, 2008; Ziska and George, 2004).

Effects on shrubs

Woody plants have a photosynthetic metabolism and a carbon allocation

pattern that is more responsive to CO2 than grasses. An increased CO2

concentration (doubled concentration) in the atmosphere led in experiments at the

Colorado Short-grass Steppe to a 40-fold increased aboveground biomass

(shrubs). In other words, rising atmospheric CO2 may be contributing to the

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shrub-land expansion causing problems for rangeland farmers because shrubs

replace grasses that are preferred forage of domestic livestock (Morgan,

Milchunas, LeCain, West, & Mosier, 2007).

Plant-animal interaction

Under increased atmospheric CO2 concentrations the carbon to nitrogen (C:N)

ratio in plants increases (Luo et al., 2004). Increased carbon inclusion in the

leaves results in a lower protein (nitrogen) concentration in the leaves (Lincoln,

Sionit & Strain, 1984). Lower leaf protein concentrations may lead to increased

foliage damage by pests because these animals need to consume more to meet

their nutritional demands. It was found that the leaf area of soybean plants

damaged by herbivore beetles increased from 5 to 11% at an elevated CO2 level

(Hamilton et al., 2005).

The problem of a unpropitious C:N ratio applies also to the interaction

between grass and livestock. Elevated CO2 concentrations severely affect the

crude protein concentration in forage, such as when crude protein concentrations

of autumn forage on elevated CO2 treatment fell below critical maintenance

requirements (Milchunas et al., 2005).

Increased Mean Temperature

Hansen et al. (2001) analyzed air temperature changes in the U.S. and found a

region-specific increase in mean temperature from 0.5 to 1.5 °C for the last

century. A further warming between 2°C and 5°C until the end of this century is

projected (Christensen et al., 2007).

Types of precipitation

The type of precipitation has changed in some areas due to increased mean

temperatures. In the western United States annual precipitation as rain rather than

snow increased at 74% in the western mountains of the U.S. over the last 50 years

(Knowles, Dettinger, & Cayan, 2006). This is derogatory to the agricultural sector

because it depends heavily on snowpack to store part of the wintertime

precipitation for the drier summer months (Knowles et al. 2006).

Droughts and heat waves

Even in an age of extensive water engineering, droughts remain a significant

source of stress to all natural systems. Morehouse, Carter and Tschakert (2002)

conducted a climate assessment for southwest America to analyze the sensitivity

of water systems, and found that Arizona’s agriculture is highly sensitive to

changes in precipitation. It is projected that net crop irrigation requirements will

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increase by 20% by 2080 because of higher transpiration reductions and longer

growing seasons (Fischer, Tubiello, van Velthuizen &Wiberg, 2007).

According to Bell et al. (2004) more frequent hot days and prolonged heat

waves are likely to occur in the southwest of the U.S. This may lead to yield

decreases when temperature peaks occur in particular time ranges because plants

are especially vulnerable during the pollination stage (Hatfield et al., 2008;

Rosenzweig et al., 2007).

In the western part of the U.S. droughts have been more frequent and intense

(Field et al. 2007). Southern California measured its driest November-April

season on record in 2007 (Comte, 2008). However, in 2008, the Southeast also

experienced drought conditions. Mississippi, Alabama, and Tennessee recorded

the driest February-April period in 113 years of record-keeping, and the related

drought, were categorized in the highest drought level and had a huge impact on

crop yield (Comte, 2008). In July 2008, farmers of Forsyth County, North

Carolina, requested federal disaster relief because of a severe drought. Especially

the loss of pasture was extensive (up to 80%) and caused problems for the

livestock producers to provide food for their animals (DeOrnellas, 2008).

Plant disease and insects

Insects are particularly sensitive to temperatures because they are cold-

blooded. They respond to higher temperatures with increased rates of

development and more generations per time unite. But if the temperature rises too

high the insect longevity is reduced. Nevertheless, warmer winters reduce

winterkill, and therefore increase insect populations in the following year which

may result in problems if crops are affected by insect attack (Rosenzweig et al.,

2001; Hatfield et al., 2008). Also, climate conditions may influence post-harvest

pest damage, such as the growth of the fungus Aspergillus flavus which is favored

by droughts. This fungus weakens crop and produces aflatoxin which can cause

acute liver damage in humans and has a highly carcinogenic effect (Rosenzweig

et al., 2001).

Effects on livestock

Cattle respond to thermal stress with reduced physical activity and a decline in

eating and grazing activity. During hot periods, voluntary food intake can

decrease as much as 50 percent below normal rates (Hatfield et al., 2008). When

these adverse conditions persist, the health of the animals is in danger (Mader,

2003). For example the extreme heat wave events of 1995, 2005, and 2006 in the

central United States resulted in massive livestock death (Hahn, 1999; Hatfield et

al., 2008). Furthermore, an increased mean temperature has negative impacts on

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milk production and also on the pregnancy rate of cattle (Hatfield et al., 2008;

Amundson et al., 2006).

Hurricanes and Severe Storms

According to Webster et al. (2005) there has been a substantial increase in the

number of the most severe tropical cyclones from 1975 to 2004. Especially along

the shoreline of the Atlantic coast, strong winds affect the agricultural sector. For

example, it was reported that recently high winds caused damage to Florida’s

winter crops (Rippey, 2008). Changnon (1997) analyzed data from crop

insurances and found that Texas experienced an increase in crop losses due to

hailstorms in the period from 1919 to 1994.

Furthermore, strong wind gusts in storm and hail events may lead to the

lodging of crops which is then impossible to harvest and therefore lost (Haftield et

al., 2008). Also, severe storms such as hurricanes and tornados can destroy farm

buildings, whole infrastructures (Bennett, 2007), and also threaten the lives of

humans and animals (“Twisters kill,” 1997).

Increased Precipitation

The saturation vapor pressure in the atmosphere is temperature dependent.

Warming is therefore accompanied by an increase in atmospheric moisture flux

and its convergence/divergence intensity. This results in an increase in

precipitation of approximately 20% over most parts of the U.S.; except in the

Southwest, as previously stated (Christensen et al., 2007).

Thus, total annual precipitation has increased over the last century by 6.1%

with accelerating tendency (Julius et al., 2008). The result of these changes is a

significant increase of flood-related disasters over the last 50 years. For example

in 1960 eight floods were recorded, whereas in 2005 a number of 170 floods were

listed (Dow & Downing, 2006).

In 2007, Texas recorded its wettest January-August season since the start of

recordkeeping. Especially the southern and central Plains were affected (Comte,

2008) with its diverse agricultural usage (e.g. winter wheat, vegetable, fruit,

cotton production, ranch framing) (Hayes et al., 1999). The Midwest was battered

in June 2008 with the worst flooding in 15 years, and vast areas of fertile

farmland were submerged and significant amounts of crops were destroyed

(Garner, 2008; Galloway, 2008).

Crop growth and delayed harvest

A delayed planting or harvest will result from flooding and heavy

precipitation due to the inability to operate machinery, which jeopardizes profits

for farmers from early season production of high-value horticulture crops such as

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melon, sweet corn, and tomatoes (Rosenzweig et al., 2002; Hatfield et al., 2008).

But flooding also causes problems during the growth season resulting in crop

losses associated with anoxia, increases susceptibility to root diseases and leading

to an increased runoff and leaching of nutrients and agricultural chemicals into

groundwater (Haflield et al., 2008). Studies with maize show that waterlogging

had a significant inhibitory effect on plant growth (Ashraf & Habib-ur-Rehman,

1999). Furthermore, flooding causes seedling death in corn and soybeans, and the

combination of flooding with high temperatures accelerates death even more

(Rosenzweig et al., 2001; Coakley et al., 1999).

Flooding promotes diseases

Water-borne diseases and degraded water quality are likely to increase with

heavier precipitation (Field et al., 2007). Kirkpatrick et al. (2006) studied the

effect of flooding on soybean plants as an important agricultural product for

Arkansas, and found that even a flooding for two days resulted in a negative effect

on the plant resistance against the common plant diseases, Phythium-damping-off

and Root-rot.

Furthermore, soil saturation promotes fungal development that causes diseases

like Crazy Top and Common Smut in corn. Increased humidity may result in the

spread of diseases because wet vegetation promotes the germination of spores and

the proliferation and spread of fungi, bacteria and nematodes (Rosenzweig et al.,

2001; Kozdroj & van Elsas, 2000).

Rise of Sea-Level

Global warming also affects coastal areas with regard to rise of the sea-level.

For example, the sea-level measured at Pleasure Pier, Galveston, Texas over 40

years (1965-2005) rose more than 40 cm (POL, 2006), and further sea-level

increase is expected (Field et al., 2007). It was projected by the emissions

scenario IS92a that between 2000 and 2100, up to 21% of the remaining coastal

wetlands in the U.S. mid-Atlantic region may be submerged by salt-water (Najjar

et al., 2000). Particular low-lying coastal plains, like the lower eastern shore of the

Chesapeake Bay in Maryland, are in danger.

This coastal plain region comprises one of the largest expanses of coastal

wetlands along the Mid-Atlantic coast and is hosting a mix of forestry and

agriculture activities. Maryland’s low-lying coastal plain, consisting of very fine

sand, silts, clay, and lighter organic material, is particularly susceptible to erosion

due to a rising sea-level (Pfahl Johnson, 2000). Another major problem for

agricultural businesses near coasts will be the freshwater supply. A rise in the sea-

level causes salt water intrusion in the groundwater and thereby contaminates

fresh water that is used by plants and animals (Tucker, 2008). Furthermore, a rise

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in the sea-level will increase flood-risk, raise the groundwater table, and prolong

waterlogging which will seriously reduce agricultural yields (Chen & Zong,

1999).

2.2 Positive Effects

Most impacts of climate change will negatively influence agricultural

businesses. However, the magnitude and direction of climate impacts will vary

locally because of regional differences in natural and anthropogenic factors and

may even result in positive effects for some farmers.

CO2 fertilization

CO2 has a strong fertilization effect on crop growth. A doubling of the CO2

concentration may lead to a 20-30% increased crop production under ideal

conditions and also affects pasture and forage production positively (Tubiello et

al., 2002; Hatfield et al., 2008). This positive effect of an elevated CO2

concentration is the result of a 20-50% increased leaf photosynthesis activity

(Ainsworth & Long, 2005). However, the extent to which a plant can utilize the

higher CO2 concentrations varies with the species. For example, wheat is more

likely to take advantage of higher CO2 concentrations compared to corn

(Easterling et al., 2004).

Warmer temperatures

Increasing temperatures generally accelerate the plant’s life cycle (Hatfield et

al., 2008). For this reason global warming has affected the premium wine industry

of coastal California in a positive way and led to higher quality wines and larger

grape yields. Even though the temperature increase was only 1.13 °C in 47 years,

the result was a 65-day increase in the length of the frost-free growing season

(Nemani et al., 2001). Furthermore, it was found that in California global

warming had a positive effect on the yield of oranges, strawberries, and walnuts

(Lobell, Cahill & Field, 2007).

Longer growing season

Cayan et al. (2001) proved by three indicators that in the western U.S. the

spring onset now starts approximately 10 days earlier compared to the mid-1970s

(see also Myneni et al., 2001). Westerling et al. (2006) linked the earlier spring

onset to higher temperatures and an earlier snow-melt. An earlier spring onset

results in a longer growing season and is therefore an advantage for agricultural

businesses.

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Increased water availability

As discussed above, climate change will lead in most parts of the U.S. to

higher precipitation. Using climate scenarios of the U.S. National Assessment,

Tubiello et al. (2002) projected that increased precipitation may result in a higher

crop yield for spring wheat, maize, and potatoes, at approximately 20% by the

year 2030.

3 Ways to Approach Climate Change

There are two major ways to approach climate change. The first way is

mitigating climate change impacts by addressing its cause. The second way is to

adapt to occurring changes in the best way possible.

3.1 Mitigation of Climate Change Impacts

The best way to mitigate climate change is by rigorously cutting down the

burning of fossil fuels and thereby stopping further CO2 emission (King, 2005).

However, oil as the major fossil fuel is the lifeblood that keeps the world

economy running (“Lifeblood of the Word”, 2006). Currently the industry is not

prepared to stop using fossil fuels because alternative technologies are not

available in the amounts and cost for a radical shift from fossil fuels to

regenerative or environmental safe energies (LeShane, 2007). However, on a

small scale, persons and businesses have changed to regenerative energies. For

example, some farmers are using self-made bio-gas for their energy supply

(Lindegaard, 2007). Also, bio-mass of willow, switch-grass, or poplar can be used

for electrical power generation as well as conventional crop-like corn for ethanol

production (Schneider & McCarl, 2003).

Another opportunity currently under research is the production of bio-fuels

from weeds that show an increased growth under elevated CO2 conditions. For

example, Kudzu roots contain as much as 50% starch which is ideal for ethanol

production (Christopher, 2008). These bio-fuels still release CO2 upon

combustion but the CO2 does not add to the atmospheric GHG concentration

because it is of atmospheric origin (Smith et al., 2007).

Also the use of nuclear power as a substitute for fossil fuel was discussed

recently (Streimikiene, 2008). Furthermore, a change in the attitude of U.S.

politicians is visible (Bluey, 2008), but, for a profound effect on the global

climate engine, all countries of the world need to reduce their GHG emission.

Unfortunately, the tendencies are just the opposite. In particular, newly-

industrialized countries like China, with their emerging markets, are increasing

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GHG emission year after year without an end in sight (Auffhammer & Carson,

2008).

Carbon sequestration

At the current state it seems unlikely that the global community will curtail the

CO2 emission on a significant scale. However, an alternative to reduce the sum of

emitted CO2 can be the returning of carbon to its original, sub-surface storage

place. This technique is called carbon sequestration. There are two different

options for sequestering atmospheric carbon, an abiotic and a biotic method.

Abiotic carbon sequestration:

In this technique, exhaust from fossil fuels is treated with monoethanolamine

or glycol solvent to recover the CO2 followed by compression, transfer, and

injection into aquifers underground, depleted gas wells, or in the deep ocean

(Halman & Steinberg, 1999).

Biotic carbon sequestration:

The Kyoto Protocol recognizes in article 3.4 the possibility of atmospheric

CO2 removal by sinks in the agricultural soils (UN, 1998). It is the goal to

accumulate carbon in the soil and thereby remove it from the atmosphere. This is

done by plants and its storage as soil-organic matter. Humification, aggregation,

deep incorporation of carbon in the subsoil, and calcification are major processes

for soil-organic carbon sequestration (Lal, 2003).

Humification takes place when plant residues are converted into complex

humic substances, which are stable and recalcitrant (Lal, 2003). During

aggregation, organo-mineral complexes are formed that encapsulate carbon and

protect it from microbial processes (Kay, 1998).

Deep incorporation of carbon in the subsoil occurs, for example, through

deep-rooted grasses (Andropogon gayanus, Brachiaria humidicolo) which

sequester significant amounts of organic carbon below the plough layer in the soil

(Fisher et al., 1994). If such plant systems were planted alternating with annual

crops, a steady sequestration could be achieved. Calcification is the formation of

carbonates which are then leached into the ground water (Lal, 2003). By utilizing

these techniques, the agricultural sector can promote carbon uptake plus fixation,

and thereby decrease GHG emission.

The agricultural sector can also contribute to increase carbon inputs and

decreasing decomposition by conservation tillage, which encompasses different

farming techniques (no tillage, strip tillage, stubble mulching, etc.) with the aim

of reducing the physical disturbance and mixing of different soil layers (Uri,

2000).

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Even though the described techniques of carbon sequestration could affect the

total atmospheric GHG concentration in a positive way, its potential is finite.

Moreover, some scientists, like Ron Miller, Gerald Meehl, and Tom Wigley,

argue that a point of no return was already passed and therefore major climate

change impacts for the next century are inevitable (Avasthi, 2005). Hence, it is

important to consider adaptation as a vital solution for agricultural businesses to

address climate change issues.

3.2 Adaptation to Occurring Climate Changes

Adaptation is a highly complex process that depends on external factors

(public policies, public opinion, market, climate, etc.) and internal factors (soil

condition, terrain, technology, infrastructure, etc.). None of these factors can be

isolated because they are all intertwined and affect each other by feedback

mechanisms and dependencies (Wall & Smit, 2005).

Adaptation aims to build “adaptive capacity” which is defined as “the ability

of a system to adjust to climate change, including climate variability and

extremes, to moderate potential dangers, to take advantage of opportunities, or to

cope with the consequences” (McCarthy et al., 2001, p. 21). In other words, the

adaptive capacity indicates how well a system is able to adjust to environmental

changes (Easterling et al., 2004). If a system is able to adjust well to changes, it is

possible to reverse otherwise adverse impacts.

Proactive Adaptation

Often adaptation occurs in the form of a reaction to adverse impacts as an

activity for self-preservation. Only a few businesses have started integrating

climate-related consideration into their strategic decision-making (Bleda &

Shackley, 2008). However, waiting to act until changes have occurred can be

more costly than making forward-looking decisions that anticipate climate

change. Forward-looking responses are termed “proactive adaptations” and

include categories such as knowledge and learning, improvement of risk and

disaster management, infrastructure development, related institutional reform,

public policy, and technological innovation (Easterling et al., 2004).

Knowledge and learning

It is important to thoroughly observe, monitor, and analyze ongoing changes

to adapt in a timely manner as well as use the accumulated data to make long-term

predictions for future changes. For instance, evidence exists that global warming

will lead to an overall increase in the number of outbreaks of a wide variety of

insects and pathogens. The existing Integrated Pest Management (IPM)

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infrastructure for monitoring insects and disease populations could be very

valuable for tracking shifts in habitable zone and forecasting outbreaks (Hatfield

et al., 2008).

Furthermore, Reilly et al. (2001) described the concept of “Precision

Farming” as style of management that incorporates information technology (e.g.

computer and satellite technology) in agriculture, and will improve farmers’

abilities to administer resources and rapidly adapt to changing conditions.

Risk and disaster management

Disaster management may include formulating a Continuity of Operations

Plan (COOP). This plan is a strategy for how a business can be kept running when

a disaster occurs, and then afterwards be able to resume normal operations (Rash,

2003). It may be good to assign an emergency response team for a larger

agricultural business that uses the Incident Command System (ICS) for its

operations in case of a disaster (Henderson, 2005).

Risk management includes adequate insurance coverage. Mills et al. (2001)

mentioned that insurers use safety programs with the aim of proactive loss

prevention to arm the individual against risks. Insurance companies may require

the adoption of certain practices to reduce exposure of people and property to

climate extremes (Easterling et al., 2004).

In case of a major natural disaster farmers rely on governmental support for

recovery, which can be expensive. Therefore, Hoeppe and Gurenko (2006)

recommend an insurance-based climate risk financing at the country level.

Infrastructure development

Infrastructures are systems designed to meet the needs of a particular business.

They can be both physical (water, energy, etc.) or institutional (health care, food

supply, security, etc.) in nature. Proactive adaptation may include installing water

harvesting systems and sub-surface tanks in the southwest of the U.S. to store

adequate water for irrigation purposes as used for example in semi-arid areas in

China (Li et al., 2000).

To help livestock during extreme heat-waves, Mader (2003) recommends

installing sprinkler devices to hydrating pen surfaces, or providing shades to

protect cattle against solar radiation.

On the other hand, transportation infrastructure is vulnerable to extreme

weather events such as rain-induced landslides. Therefore, roads should be

constructed in a way that prevents such incidences; for example, by enhancing

gravity drainage systems, widening drainage canals, or forcing drainage by

pumps, as used in New Orleans (Titus et al., 1987).

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Also, the infrastructure for power transmission is vulnerable to high winds and

ice storms when installed in the form of suspended overhead cables. Proactive

adaption may include burying the cables underground (Wilbanks et al., 2007).

An adaption to a rising sea-level for agricultural businesses in coastal areas

may include small-scale erosion-control measures such as erecting sand fencing

or elevating their structures as protection against storm surges (Easterling et al.,

2004).

Related institutional reform

With increasing need of irrigation in the Southwest U.S., water management is

a serious issue. Proper institutions for water management, that overlook allocation

mechanisms and water-use efficiency, are needed to help farmers adapt to

increasing dry climate conditions (Smith et al. 2007).

In the other parts of the U.S., flooding and related damages need to be

addressed. Flood relief and insurance institutions play an important role here, and

they may have to review flood relief and compensation programs, particularly

with the intent to increase the use of incentives that encourages proactive adaption

to reduce flood risk exposure (Hurd, Callaway, Smith & Kishen, 2004).

Furthermore, agricultural GHG offsets are encouraged by institutions like the

Pacific Northwest Direct Seed Association or the Chicago Climate Exchange

Institution. Offset trading allows farmers to obtain credits for soil carbon

sequestration by no tillage and conversion of cropland to grassland (Smith et al.

2007).

Public policies

A number of public policies exist that aim to mitigate climate change impact

but also serve as proactive adaptation by promoting behavior that helps

agricultural businesses to prepare against negative climate influences. There are

different tools that have been used for climate policy, ranging from regulatory

standards to taxes, charges, tradable permits, subsidies, and incentives (Gupta et

al., 2007).

For example, the U.S. Global Climate Change Initiative uses subsidies and

incentives with the goal to reduce GHG emission by 18% by the year 2012.

Actions of the agricultural sector include manure management, reduced tillage,

grass planting, and afforestation of agricultural land (Smith et al., 2007).

Energy conservation and energy security policies promote bio-energy and

thereby encourage the agricultural sector to adapt to declining fossil fuel

availability in the future. Furthermore, the Conservation Reserve Program

promotes environmentally sensitive land conversion to native grasslands which

may be a proactive measure against soil erosion (Smith et al., 2007).

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Also, trade policies for genetically modified plants and organisms as well as

patents on genetic sequences across the world may have a strong effect on the

international trade pattern and the use of this species for a proactive adaptation of

the changing environment (Reilly et al. 2001).

Technological innovation

Crop yield has increased by an average of two percent each year since 1950

due to intense research activities, adaptation of new technologies, and educating

farmers (Huffman & Everson, 1992). It can be expected that research and

development will assist farmers to adapt their crop production to a changing

climate (Reilly et al., 2001).

For example, bio-technology has the potential to improve adaptability,

increase resistance to heat and drought, change crop maturity schedules, and may

allow the interchange of characteristics among crops. Bei et al. (2008) created

transgenic maize plants that showed a significant increased drought resistance,

higher percentage of seed germination, and better developed root systems. Also,

crop-to-wild hybridization has been discussed widely (Ellstrand, 2001) and since

weeds are benefiting more from elevated CO2 conditions, a hybridization with

crops may result in increased growth capacity.

Furthermore, improved farm management and husbandry techniques, such as

the diversifying of crops (Hatfield et al., 2008), improved cultivars and irrigation

techniques (Reilly et al., 2001), and improved animal nutrition and dietary in

order to increase animal health and fertility, (Smith et al., 2007) may help to adapt

to a changing climate in a proactive way.

4 Conclusion

Climate change is a global phenomenon that affects all businesses. The

agricultural sector is especially vulnerable to changes because it directly depends

on climate variability. Climate change and global warming are caused by

increased CO2 concentration in the atmosphere which fosters weed growth and

leads to warmer temperatures that will result in heat-waves and increased

frequency of droughts in the Southwest. In other parts of the U.S., an increase in

precipitation, floods, severe storms, and further rises of sea-levels are likely.

However, there are also positive effects related to climate change like longer

growth seasons, the CO2 fertilization effect, increased crop growth due to warmer

temperatures, and enhanced water availability. Despite these positive effects, the

negative impacts of climate change are superior and agricultural businesses need

to react.

16

The two ways to approach climate change presented in this article are

mitigation and adaptation. Mitigation includes techniques to reduce CO2 emission

like substitution of fossil fuels with bio-fuels, as well as methods to return carbon

to sub-surface areas through carbon sequestration. Adaptation is needed in a

variety of areas and should occur in a proactive way. Adaptation includes

mechanisms like knowledge and learning, improvement of risk and disaster

management and response, infrastructure development, related institutional

reform, public policy, and technological innovation.

It may not be possible to mitigate climate change impacts completely, but the

sooner agricultural businesses proactively adapt the more likely it is that adverse

impacts can be reduced or even reversed to achieve an advantage. If U.S.

agricultural businesses take the lead in adaptation they may not only benefit

themselves, but can also be a role model for the whole world.

17

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