Impacts of Climate Change and Agricultural Diversification on Agricultural Production Value of Thai Farm Households
Climate change has caused widespread alterations in the environment and agricultural production. This paper investigates how higher temperature impacts agricultural production value of Thai farmers and the potential adaptation through diversification strategies. We use historical weather data coupled with farm household socioeconomic survey data to carry out econometric regression analysis and perform projections from the IPCC AR6 scenarios. We find that higher temperature reduces agricultural output value and that this will be worse as the planet keeps warmer. We also find that households engaged in diversified production activities are better adapted to higher temperature. The adaptation outcomes increase with access to irrigation and smaller farm size. Our findings support the country's policies to encourage integrated farming and diversified crop-mixes strategies for Thai farmers.