Adaptation to Climate Change by Australian Farmers

Abstract

Climate change in the form of higher temperatures, changes of rainfall patterns, and for some, more natural disasters will reduce the returns from current farming choices on what to produce and the production methods. Variation of climate change across regions and uncertainty about the magnitudes of change call for a diverse mix of adaptations to climate change across different regions and individual farms. This paper considers the institutional structure for effective climate change adaptation by Australian farms. It is argued that a rerun of the history of successful adaptation of farms to new technology, changes in output and input prices, natural climate variation, and other circumstances can be repeated for climate change adaptation. Individual farms can benefit from incentives and rewards to revise their decisions, which will combine with better individual outcomes. Complementary support by the government includes the provision of climate change and weather forecast information, support for research into new technology, help to evaluate the pros and cons of alternative choices, and provision of a social safety net for those unable to adapt.