As part of the Engaging 4 MO webinar series, senior research associate Ben Brown described findings from a project that focused on how precipitation and temperature affect corn and soybean basis in the presence of climate change. The research measured spatial basis - in particular, the difference between a local cash price and the price at the Port of New Orleans - and worked to understand how weather conditions may stress current infrastructure and, therefore, change basis levels.
The study yielded several key findings including these two:
1) Climate change scenarios are estimated to increase corn yields in most scenarios at the median across the region while decreasing soybean yields.
2) Corn and soybean basis distributions widen across the region. Local yields have the largest impact.
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