Integrating predictive information into an agro-economic model to guide agricultural management

Skillful season-ahead climate predictions linked with responsive agricultural planning and management have the potential to reduce losses, if adopted by farmers, particularly for rainfed-dominated agriculture such as in Ethiopia. Precipitation predictions during the growing season in major agricultural regions of Ethiopia are used to generate predicted climate yield factors, which reflect the influence of precipitation amounts on crop yields and serve as inputs into an agro-economic model. The adapted model, originally developed by the International Food Policy Research Institute, produces outputs of economic indices (GDP, poverty rates, etc.) at zonal and national levels. Forecast-based approaches, in which farmers' actions are in response to forecasted conditions, are compared with no-forecast approaches in which farmers follow business as usual practices, expecting "average" climate conditions. The effects of farmer adoption rates, including the potential for reduced uptake due to poor predictions, and increasing forecast lead-time on economic outputs are also explored. Preliminary results indicate superior gains under forecast-based approaches.