It
is not news nowadays that the climate on earth is changing. And this change is
not a long-term prospect, this is a process happening here and now.
Consequences of it one can observe in this day and age. Climate
change has a global impact on the human environment, nature, wildlife. And
surely it also takes its strongest toll on economics. The most vulnerable to
climate change agricultural sector turns to be. Many agricultural
plants, on manufacture and market sale of which economics of some countries and
large sectors of world trade are based, are extremely susceptible
to weather changes; unexpected climate changes, not to mention here a process
of global warming, can affect production of these plants in the most disastrous
way. In its turn this process can directly influence the majority
of population of export countries, where cultivation of these plants is basically
the only source of income, and in some cases the main element of the food
supply. Kenya where about 9% of the world leafy tea are produced and this tea
is the largest source of foreign currency for the country faces the situation when
more abundant rainfall, severe drought and unexpected frost damage fragile
bushes. In consequence, tea plantations are reduced, and to maintain export
level of tea it is necessary to start locating new plantations at higher
altitudes. This case makes farmers’ work complicated, and many of them can lose
their livelihood.
A rise in temperature, frequent droughts and heat waves
reduce the growth period of cassava (Manihot esculenta) on African fields that
accordingly affects the crop adversely. Considering that cassava is a staple
food in this overpopulated region threat of famine seems
quite real.
“In the case of the US drought, soybean
production decreased by 12%, while core production fell by 13% to its lowest
level since 2006, according to the Department of Agriculture. Insured crop
losses were almost $12bn and overall GDP suffered as a result. Credit rating
agency Standard & Poor’s has predicted that weather events like extensive
droughts or high temperatures will have a negative impact on credit ratings of
corporations and institutions that are affected.”
(с) Allianz Global Corporate & Specialty
(с) Allianz Global Corporate & Specialty
Due to frost in Brazil, millions of tons of sugarcane
were damaged, which led to a significant reduction in sugar exports. Reuters
informs that frosts also would lead to considerable losses of wheat crop in the
current season and of coffee crop next year.
Thus one of the most important questions related to
climate change including global warming is how it will affect the food supply
of the world population which keeps growing.
Humanity can influence climate change only to some small
extent. And even if a battle with global warming is successful, the climate on
earth still will keep changing. Impact of such phenomena as El Niño is
hardly underestimated.
And also one should pay respect to rainfalls, drought or
frost, which are temporary, but sometimes protracted.
Currently a whole package of measures is suggested which can if not change the situation then smooth out the impact and consequences of various weather phenomena on economics in general and on agriculture in particular. For instance, increasing of efficiency of agricultural measures, so-called “current land use” is worth mentioning here. Nowadays these technologies exist which help making choices in how much land to cultivate, how many and what kind of crops to plant in some region and what the best use for fertilizers is in a condition of changing climate.
Currently a whole package of measures is suggested which can if not change the situation then smooth out the impact and consequences of various weather phenomena on economics in general and on agriculture in particular. For instance, increasing of efficiency of agricultural measures, so-called “current land use” is worth mentioning here. Nowadays these technologies exist which help making choices in how much land to cultivate, how many and what kind of crops to plant in some region and what the best use for fertilizers is in a condition of changing climate.
Here come to help weather forecasts specially designed
for agriculture, analysis of historical data, processing of satellite images in
various spectrums, etc. A new sector of economics called the weather
risk management market highly develops.
Public attitude to insurance in agricultural sphere has been changed. The standard common approach gives its way to thoughtful, based on analysis of all available data one, to insurance of farmers, which can help them survive crises caused by natural disasters.
Public attitude to insurance in agricultural sphere has been changed. The standard common approach gives its way to thoughtful, based on analysis of all available data one, to insurance of farmers, which can help them survive crises caused by natural disasters.
And there is a hope that the use of cloud and big data
technologies, the use of platforms such as VANE Spatial Data SciencePlatform by OpenWeatherMap if not tame weather phenomena, then make them a
calculated object for forecast and analysis.
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