The effect of El Nio Southern Oscillation on US corn production and downside risk

ENSO teleconnections imply anomalous weather conditions, causing yield shortages, price fluctuations, and civil unrest. We estimate ENSO's effect on U.S. county-level corn yield distributions and find that temperature and precipitation alone are not sufficient to summarize the effect of global climate on agriculture. We find that acreage-weighted aggregate impacts mask considerable spatial heterogeneity at the county-level for the mean, variance, and downside risk of corn yields. Impacts for mean yields range from -aEuro parts per thousand 24 to 33 % for El Nio and -aEuro parts per thousand 25 to 36 % for La Nia, with the geographical center of losses shifting from the Eastern to Western corn belt. ENSO's effect on the variance of crop yields is highly localized and is not representative of a variance-preserving shift. We also find that downside risk impacts are large and spatially correlated across counties.