The Impact of Weather on Agricultural Labor Supply

21 Pages Posted: 25 Jan 2018

See all articles by Jaehyuk Lee

Jaehyuk Lee

East Georgia State College - Department of Social Sciences

Denis A. Nadolnyak

Auburn University - Department of Agricultural Economics and Rural Sociology

Valentina Hartarska

Auburn University - Department of Agricultural Economics and Rural Sociology; Auburn University - Department of Finance

Date Written: January 17, 2017

Abstract

Recent work shows that the weather affects U.S. labor productivity and supply (e.g., Deryugina and Hsiang, 2016). Although agricultural economists have identified factors that affect farmers’ allocation of labor between on- and off- farm work, they have not related labor supply to weather. We estimate the impact of temperature and precipitation on individual on-farm labor supply using 10 years of the Agricultural Resource Management Survey data. We find that temperature and farm operator labor supply have a parabolic relationship with a minimum at 61oF. We compute that one 1oF increase in annual temperature translates into 8.5 million hours of reduced country-wide farm operator labor valued at about $188 million. Precipitation has a significant but negligible marginal impact on the operator labor supply, consistent with the existing literature.

Keywords: farm, labor supply, weather

JEL Classification: J43, Q1, Q10, Q12

Suggested Citation

Lee, Jaehyuk and Nadolnyak, Denis A. and Hartarska, Valentina, The Impact of Weather on Agricultural Labor Supply (January 17, 2017). Available at SSRN: https://ssrn.com/abstract=3104156 or http://dx.doi.org/10.2139/ssrn.3104156

Jaehyuk Lee

East Georgia State College - Department of Social Sciences ( email )

131 College Cir.
Swainsboro, GA 30401
United States

Denis A. Nadolnyak

Auburn University - Department of Agricultural Economics and Rural Sociology ( email )

Comer Hall
Auburn, AL 36830
United States

Valentina Hartarska (Contact Author)

Auburn University - Department of Agricultural Economics and Rural Sociology ( email )

Comer Hall
Auburn, AL 36849
United States

Auburn University - Department of Finance ( email )

Auburn, AL 36849
United States

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