Title: Climate Change--Building Greater Resilience in Agriculture Description: American farmers, ranchers and other agricultural producers are increasingly facing the impacts of climate change. Federal insurance programs can help offset some of these financial impacts. But as extreme weather events increase, so does the government's financial exposure. We find out more about federal efforts to create greater climate resilience in agriculture from GAO's Steve Morris. Related GAO Work: GAO-23-104557, Climate Change: Options to Enhance the Resilience of Agricultural Producers and Reduce Federal Fiscal Exposure Released: February 2023 [Music] [Steve Morris:] The changes in the climate have already had some significant impacts on our agricultural system and have resulted in billions of dollars of losses thus far. [Holly Hobbs:] Hi and welcome to GAO's Watchdog Report. Your source for news and information from the U.S. Government Accountability Office. I'm your host, Holly Hobbs. American farmers, ranchers and other agricultural producers are increasingly facing the impacts of climate change. Droughts, for example, can lead to crop losses and large financial costs for farmers. Federal insurance programs can help offset some of these financial impacts. But as extreme weather events increase, so does the government's financial exposure. Today, we'll talk with GAO's Steve Morris, an expert on federal agriculture programs, about some steps being taken to enhance climate resilience in farming and what more can be done. Thanks for joining us. [Steve Morris:] Great to be here with you today, Holly. [Holly Hobbs:] So, Steve, can you start by giving us some examples of how climate change is already impacting farmers and ranchers? [Steve Morris:] Yeah, absolutely, Holly. You know, farmers and ranchers are really on the front lines of climate change. They're going to continue to experience extreme weather events now and in the future. So we're likely to see some areas of the country, for example, experiencing high temperatures and frequent droughts and devastating fires. But you're going to have other areas that are going to experience severe storms and torrential rainfall and major flooding. You know, the changes in climate are also going to probably spread harmful pest and disease to new areas, which is going to make farming and ranching even more difficult. [Holly Hobbs:] What about the financial impacts? What have they been so far and what is the government's role in helping farmers with those costs? [Steve Morris:] The changes in the climate have already resulted in billions of dollars of losses. As there's more and more extreme weather events, the cost of providing financial assistance to the farmers and ranchers impacted by events also increases. You'll see, over the last several years, Congress has directed more than $15 billion in aid to farmers because of losses due to natural and weather related disasters. You know, another way the government helps farmers is through the federal crop insurance program. And this is a multi-billion dollar program which provides coverage on over 100 different crops and products. And according to USDA, the overall cost of their program actually could increase almost 40% in the coming decades if no action is taken to enhance the climate resilience of the farmers and ranchers. [Holly Hobbs:] And what about the impacts on consumers? For example, what could we see at the grocery store? [Steve Morris:] Climate change is going to have some multiple, I'd say, cascading impacts. So what you're going to see is, you know, as the environment is impacted, so will our agricultural system and productivity. And in turn that's going to impact the availability and cost of food as well. You'll also see on a broader scale impacts on our society and economy as a whole. You have to remember, U.S. agriculture is really a huge business. It accounts for almost 20 million jobs. So any significant impact could have a devastating impact also on people's livelihoods, right. So think of it this way, it's very essential and it touches all of us, hopefully every day, three times a day. We need to make sure that our agricultural system is strong and that farmers and ranchers are really resilient to the extreme weather events coming their way. That's what building resilience is really all about, right? It's about taking action today so that we can help minimize the effects of disaster tomorrow. [Holly Hobbs:] So, Steve, with all that said, what is the Department of Agriculture doing to help reduce this exposure or to help farmers and ranchers avoid climate related losses? [Steve Morris:] Well, Holly, the good news is that USDA has already taken some important steps. And I'll give you a couple of examples. USDA has created a Climate Change Program Office, and it's essentially a way of the department coordinating all the efforts that are designed to provide some assistance to farmers and ranchers. USDA has also established what's called regional climate hubs, and there's about ten of them across the country. And these hubs are really designed to provide some real-time, region specific information to farmers and ranchers to help them better understand the vulnerabilities they're facing, and also provide some ways to mitigate against some of those risks. So just as an example, we looked at one hub that developed it basically was an online tool that farmers could access to identify like specific actions they could take. So, for example, planting drought and heat tolerant crops in areas of the country that were predicted to become drier and hotter. [Holly Hobbs:] And you said these are important steps, but in our report, we identified some additional actions USDA should be taking, right? [Steve Morris:] Well, USDA has made some good progress. We found some additional opportunities that could help enhance some of their climate resilience efforts. So, we identified 13 options that we think could prove helpful. These include things like, and I just mentioned the climate hubs, but, expanding their role and their capacity so they could serve even more farmers and ranchers throughout the country. Another is creating some additional incentives in programs, such as the Federal Crop Insurance Program, to basically encourage and incentivize farmers to adopt what's considered climate resilient practices like planting cover crops and improving irrigation systems. That sort of thing. Now each option we identified has its strengths and limitations. We acknowledge that. But, you know, we think by implementing multiple options, USDA could kind of leverage some of the strengths and limitations of these various options. In addition to all that, some of these options, if adopted, really could enhance the resilience of the USDA efforts and also reduce the government's fiscal exposure to the effects of climate change. So that's a good thing. [Holly Hobbs:] So we've shared our list of 13 things with USDA. How did they respond? [Steve Morris:] We did share this with the department. You know, they essentially agreed that a combination of the various options we identified would likely be more effective in helping producers enhance their climate resilience. They told us, however, that they may need some additional authority and additional resources to fully implement all these options. {MUSIC} [Holly Hobbs:] So Steve just told us that the Department of Agriculture has already taken important steps to help farmers and ranchers respond to climate change and reduce federal financial exposure. But that we identified additional steps USDA could take to improve its efforts. So, Steve, what needs to happen for USDA to act on the additional steps we identified? [Steve Morris:] We made a recommendation that USDA conduct a pretty comprehensive analysis of the 13 options we identified as a way to help guide and prioritize their own climate resilience efforts. And we also specified that USDA should identify any additional authority or resources it may need to implement these various options. The good news here is that USDA agreed with the recommendation, and they're taking some initial steps to implement it. [Holly Hobbs:] And last question, what's the bottom line of this report? [Steve Morris:] We're already seeing changes in climate, right. And it's already had major impacts on farmers and ranchers. And these impacts are expected to worsen in the future. The government really can play a key role here in helping ranchers and farmers by fully, really supporting them in terms of enhancing their resilience. Implementing the options we identified in our report would be an important step in that direction. And in turn, it's going to help reduce the government's fiscal exposure to the effects of climate change. [Holly Hobbs:] That was Steve Morris talking about GAO's recent review of climate resilience and agriculture. Thanks for your time, Steve. [Steve Morris:] Thank you, Holly. [Holly Hobbs:] And thank you for listening to the Watchdog Report. 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