Economic Effects of Precipitation Enhancement in the Corn Belt

Abstract

Policy formulation in weather modification requires an understanding of the economic effects from altered weather. The focus of this study is to provide insight into the beneficiaries of a functioning weather modification technology when applied at various spatial and temporal levels. An econometric model which links the corn/scybean production to U.S. cattle, hog and poultry sectors is used to determine the effects of precipitation enhancement in the U.S. Corn Belt, a humid climatic region. A regional supply formulation permits assessment of weather modification on production, prices, revenues to producers, and savings in consumers expenditures on meat. The results provide insight into the distribution of economic effects, emphasize the importance of careful planning in the use of weather modification technology, and provide useful information on the roles of local, state, and federal governments in the support of weather modification.