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

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: 2011 – Release of non-GE DT corn. – 2012: Commercial launch of GE DT hybrids by firms like Monsanto and DuPont Pioneer. – By 2016: 22% of U.S. corn acreage planted with DT hybrids.

Key Drivers: – Climate stress in Midwest regions. – Strong marketing and bundling strategies by seed companies. – Technical assistance and credit for hybrid seed purchases.

Takeaway: The success of DT crops depended not just on innovation but on companies’ ability to deploy field agents, promote adoption, and ensure product-market fit. Firms like Corteva are at the forefront of pairing agronomic expertise with market expansion.