Page:OMB Climate Change Fiscal Risk Report 2016.pdf/14

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1. Crop Insurance
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Climate Change and Crop Insurance
Climate change is already affecting agricultural production and negative impacts are, on average, expected to grow more severe over the course of this century. Some effects may be positive—higher levels of carbon dioxide in the atmosphere tend to increase plant growth (so-called “CO2 fertilization”) and water-use efficiency. However, negative effects from increased extreme heat and drought, more intense precipitation and soil erosion, growing stress from disease and pests, shifting soil moisture and water availability for irrigation, and higher concentrations of ozone are generally expected to outweigh