Climate impacts on aggregate farm value: Accounting for adaptation

This paper explains a Ricardian method which compares actual farmer behavior across different climates. The method incorporates farmer's adaptation because it captures the outcome of each farmer matching his behavior to local climate conditions. This paper explores a new application of the Ricardian method capturing how climate affects both the per acre value of farms and how much land is farmed. These empirical relationships are used to predict the agricultural impacts of simple climate warming scenarios.