The value of shelterbelts to agricultural production in the northern Great Plains: An economic assessment in a changing climate

his project examined value of field shelterbelts in agricultural production and assessed the prospects for using them in adapting to climate change using a benefit-cost analysis approach. The financial analysis indicated positive returns for discount rates above eight percent without cost share. However, without the benefit of cost-share, producers would endure a significant period of negative returns. When cost share was included, negative returns were all but eliminated and benefits exceeded costs up to a discount rate of 37 percent.;Economic analysis indicated favorable returns to a public investment in shelterbelts for discount rates approaching ten percent. With erosion-control costs comparable to those for the establishment of permanent grass cover, it was concluded that shelterbelts represent a more efficient investment of public funds where the control of wind erosion is the primary objective.;The capacity of shelterbelts to mitigate potential economic losses connected with climate change were assessed. A comparison of the yield impacts of climate change on five million acres of sheltered and unsheltered crops were made. Yield simulations generally indicated a higher yield for sheltered crops than for unsheltered crops. The yield benefits of shelterbelts increased as more stressful climate conditions were considered. Shelterbelts completely erase financial losses for moderately stressful climate change scenarios but shelterbelt protection minimized losses in every other scenario.;An input-output model was used to assess the yield impacts of climate change on agricultural production of the entire region. In every climate scenario, the conjectural shelterbelt establishment program provided benefits to the regional economy. Shelterbelt establishment activities and enhanced yields provided a total economic impact of...