The impact of climate on farm inputs in developing countries agriculture

The success of the green revolution has prompted some analysts to suggest it can be extended more broadly to all poor farmers. This paper argues that suitable natural endowments are an important precondition for high input farming. Examining production functions across China, we find that outcomes are very climate sensitive. It follows that we also find that input demand functions are climate sensitive. Efforts to intensify farming in undeveloped regions should focus on places with suitable soils and especially climate. The results also suggest that farmers will partially adapt to climate change by altering their input intensity.