Climate-Driven Innovation: The Rise of Drought-Tolerant Corn

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Link to NBER Paper

Drought is one of the most persistent threats to U.S. agriculture. This study examines how seed companies assisted farmers in adapting to drought conditions through the development and promotion of drought-tolerant (DT) corn hybrids.

Adoption Timeline: Conventionally bred and genetically engineered drought-tolerant corn became broadly available between 2011 and 2013, with hybrids from firms like Monsanto and DuPont Pioneer. By 2016, 22% of U.S. corn acreage was planted with DT varieties (USDA ERS).

Key Drivers: The paper finds that long-run temperatures and drought risk, rather than recent drought exposure, drove DT corn adoption in 2016, and that the western Corn Belt was a major marketing focus in the early years of commercialization.

Takeaway: The success of DT crops depended not just on innovation but on where seed companies focused their marketing and how well the product fit local climate risk. Firms like Corteva are at the forefront of pairing agronomic expertise with market expansion.