Climate Change Impacts on the U.S. Livestock Sector and Possible Adaptations

Final report for GS22-261

Project Type: Graduate Student
Funds awarded in 2022: $16,500.00
Projected End Date: 08/31/2025
Grant Recipient: Texas A&M University
Region: Southern
State: Texas
Graduate Student:
Major Professor:
Dr. Bruce A. McCarl
Texas A&M University
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Project Information

Summary:

The project will investigate the impact of climate change on the U.S. livestock sector and the potential adaptation strategies to cope with climate change. The U.S. livestock sector, especially beef and chicken, are mainly produced in the Southern U.S. and has been threatened by climate change. However, according to IPCC, the Southern US is projected to be hotter with longer and worse extreme heat in the future, which makes the livestock sector less sustainable. The reduction in livestock yield will drive up meat prices, which in turn exacerbates the market situation of the low-income groups. The potential adaptation strategies need to be investigated to cope with climate change impact and protect the disadvantaged groups.

In this study, we will (1) Build econometric models to empirically estimate climate influence on the hog and chicken production in the U.S. and project the changes in production rates under various climate scenarios. 2) Embed the estimated results from objective 1 to the Forestry and Agricultural Sector Optimization Model (FASOM) model to simulate the integrated impact of climate change on the U.S. livestock sector, focusing on the production and price changes, resource reallocation, and farm income changes. (3) Investigate adaptation alternatives to cope with climate change (e.g. changing the mix of livestock and breeds and investing in equipment), and estimate the value of adaptation. (4) Investigate the impact of climate change on the disadvantaged groups and the welfare improvement associated with the adaptation strategies.

Project Objectives:

Objective 1: Estimate climate impacts on the livestock production in the U.S. and project future impacts under various climate change scenarios

We will build fixed effects panel econometrics models to empirically estimate the climate change impacts on hog and chicken performance, including hog slaughter weight, piglet litter size, piglet survival rate, broiler slaughter weight, rate of lay, and broiler survival rate. Temperature, relative humidity, temperature, and humidity index (THI) (Ekine-Dzivenu et al. 2020) are considered the key explanatory variables as heat stress is the major threat to livestock performance.

Based on the best model selected by cross-validation, the impact of climate change on livestock performance under various emission assumption scenarios will be projected from now to the end of the century using the CMIP6 version projected climate data by IPCC. The projected impacts will be used in Objective 2.

Objective 2: Estimate the integrated impact of climate change on the U.S. livestock sector

The projected impact of climate change on the hog and chicken sector will be embedded into the Forestry and Agricultural Sector Optimization Model (FASOM) model to estimate the integrated impact of climate change on the U.S. livestock sector. The impact of climate change on cattle performance including the calf survival, calf loss rate, beef and milk production based on previous group work (Wang 2020; Fan 2018) will also be embedded. FASOM will simulate the new market equilibrium of the livestock market under various climate change scenarios. A set of comparison scenarios with and without the impact of climate change on crop yield based on previous studies will also be made to investigate the indirect impact of climate change on the livestock sector which is imposed through feed cost changes and the land-use changes.

Objective 3: Investigate the adaptation possibilities and the value of adaptation

FASOM can also simulate the optimal adaptation strategies to cope with climate change given various impacts projected by Objective 1. The potential adaptation strategies include changing livestock and breed mix, altering the land use by livestock, improving livestock management, and investing in cooling facilities (Escarcha, Lassa, and Zander 2018). All potential adaptation strategies are endogenized into the model so that they can be selected as the best fit or tradeoff.

As a comparison, a set of scenarios that do not allow the adaptation will also be examined for each climate case. The difference in the objective function between the with and without adaptation scenarios will be counted as the value of adaptation.

Objective 4: Investigate the influence on the well-being of livestock producers and low-income farmers induced by climate change impact on livestock with and without adaptation

As the market equilibrium price and quantity and the input costs will be changed by climate change impacts, the farm income will be recalculated based on simulated price and quantities. The meat consumption and utility changes of the low-income group will also be recalculated based on market information and price elasticities and utility assumptions from literature.

Cooperators

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Research

Materials and methods:

Approach and methods for Objective 1

Several econometric models will be built to estimate the impact of climate change on livestock production and reproduction rates, including a) poultry egg production, b) broiler finishing weights, c) broiler loss rate, d) hog litter size, e) piglet death rates and f) hog finishing weights.

A panel dataset of the livestock production and reproduction rates will be obtained from the USDA quick stats database at the state level. The finest available time-frequency of the data will be collected. Namely, monthly for poultry data and quarterly for hog and cattle data. The climate data for each state will be recalculated based on the PRISM dataset to match the time-frequency of livestock production and reproduction rates.

In terms of models, the fixed effect panel model with heteroscedasticity handling has been selected as the base model. In terms of explanatory variables, degree days, relative humidity, and THI are selected as the critical variables with nonlinear and piecewise functional forms. The degree days and THI with various thresholds are calculated and used as candidate explanatory variables to give the flexibility of heat stress criteria selection, following Schlenker and Roberts (2009). A cross-validation procedure will be applied to select the model with the best performance.

After selecting the best-performed model, the impact of climate change on each livestock performance character is projected over climate scenarios. The climate data will be calculated based on the CMPI6 collection of results from General Circulation Models (GCMs) under various Shared Socioeconomic Pathways (SSP) scenarios. The impact of climate change on the beef and dairy cattle will also be projected based on the previous studies (Wang 2020; Fan 2018), including the calf survival, calf loss rate, and beef and milk production. The percentage changes in livestock production and reproduction rates will then be calculated, implying how vulnerable and unsustainable the livestock sector is under current technology and management strategies. The percentage changes will also be used by Objective 2 for further integrated analysis.

Approach and methods for Objectives 2 and 3:

Generally, the agricultural component of the Forestry and Agricultural Sector Optimization Model (FASOM) will be used to investigate the integral impact of climate change on the livestock sector (Objective 2) and the optimal adaptation possibilities to cope with climate change plus the value of adaptation (Objective 3). FASOM is a dynamic, nonlinear, and price endogenous programming model for the forest and agricultural sectors in the United States. Its agricultural component simulates land allocation and the resultant consequences for the commodity markets supplied by these lands (Adams et al. 2005). FASOM has been widely used in analyzing the impact of climate change on the agricultural sector, the consequential market response, and the optimal adaptation strategies to cope with climate change (Fei et al. 2021; Fei et al. 2017). This study will embed the projected climate change impact on the livestock sector in Objective 1 into FASOM and simulate the integrated climate change effects following Fei et al. (2021). The impact of climate change on crop yield and water usage has been built into FASOM by Fei et al. (2021), and will also be activated for this study.

For Objective 2, FASOM will be used to simulate the changes in market equilibrium under climate scenarios. The changes in the livestock sector value, production, and prices in each region and more market information will be calculated based on the model solution. A set of comparison scenarios with and without the impact of climate change on crop yield based on Fei et al. (2021) will also be made to investigate the indirect impact of climate change on the livestock sector, through feed cost changes and the land-use changes. 

For Objective 3, we will focus on the adaptation strategies selected by the model. We endogenize potential adaptation strategies, including changing livestock and breeds mix, changing the land use by livestock, livestock management, and investing in cooling facilities. The management budget for each livestock and breed species has been built into the model, allowing these budgets to be switched within the convex combination of the historical livestock and breeds mix. Per animal land use (or animal unit month, AUM) is also built-in FASOM subject to the climate change impact on hay and forage yields. The cooling facility investment is a special adaptation strategy. We will first estimate the cost of installing more cooling facility and their offset on the climate change impacts on livestock performance (mainly due to the heat stress reduction). Then estimated cost and benefit will then be embedded into FASOM and operated only if a fixed cost of installation is charged. The adaptation strategies are also active when doing the Objective 2 analysis.

From Objective 2&3, we can estimate the integrated impact of climate change on the U.S. livestock sector and investigate the optimal adaptation strategies to cope with climate change and get sustainable development. If the results indicate the livestock sector is still vulnerable after adaptation, the alarm should be trigged to invest more in livestock technology improvement and make more mitigation efforts.

Approach and methods for Objective 4:

As climate change impacts will change the market equilibrium price and quantity and input costs, the farm income will be recalculated based on simulated market equilibrium price and quantities. The impact on the input cost changes will also be counted in the calculation.

For the meat consumption and utility changes of the low-income group, we will collect the specific price elasticity of meat, eggs, and dairy products and the suggested utility function with food consumption consideration from the literature. The meat consumption changes and the utility changes will then be analyzed using the market information under climate change.

Objective 4 examinate the changes in the well-being of livestock producers and disadvantaged customers affected by climate change's impact on the livestock sector. It is essential to secure farmers' quality of life and disadvantaged groups.

Research results and discussion:

Figures and Table

Herein we first present the threshold levels we found that gave the best model fit for low and high heat stress using THI level as a measure for heat stress, then we will discuss the climate change impacts estimation results by livestock breed and the technology impacts. In general the results indicate THI is related to the livestock productivity measures in the form of an inverted U-shaped impact, meaning that the productivity measures initially increase as THI increases and this persists until a certain threshold point then above that they decline.

  • Heat stress thresholds

Illustrations of heat stress thresholds for cattle, hogs, and chickens are shown in Figures 1-3, respectively. In general, cattle productivity gets more impacts from changes in THI when compared to hogs and chickens, and suffers a larger decrease in extreme heat conditions.

For cattle, the heat stress thresholds for production (milk yields and slaughter weights) are higher than those for the reproductive performance measures (birth rates and survival rates). The low heat stress occurs at a THI level of 55 for milk yield and 57 for cattle slaughter weights, while for calf birth rates it is 52 and for calf survival it is 53. This indicates that as heat stress level increases, the calves and pregnant animals will be more sensitive to the change, and the growing animals will experience heat stress until it reaches a more elevated level. Cattle yield will decrease at a small pace until the THI rises to a higher level, exhibiting a sharp decrease in cattle slaughter weight and milk yield at THI = 74 and THI = 72, respectively.

When considering hogs and chickens we find they exhibit both low heat stress and high heat stress at a lower level compared to cattle. Piglet survival rate and egg laying rate start to decrease at THI thresholds of 55 and 50, and sharply decrease under high levels of heat stress at 65. In contrast, a sharp decrease for calf birth and calf survival rate will occur at THI = 70. In other words, hogs and chickens have shorter intervals of tolerance to low heat stress and exhibit high heat stress at lower THI levels compared to cattle.

Although we have to admit that there is a set of models that perform almost equally well and the differences among them are quite small.

  • Projected livestock productivity over time

We make the projections under RCP 4.5 and ensembled 6 GCMs. We present a weighted average on the national level based on the production. The climate change impacts on milk yield and cattle slaughter weight may seem. However, this is misleading because climate change is imposing opposite impacts on northern and southern regions, and on the national average the impacts cancel out. For cattle reproduction measures, calf birth rate and calf survival rate, the former shows a decreasing trend under “with technology” cases and climate change makes things worse, and the latter keeps increasing with the support of improving technology while climate change is also playing a negative role.

For hogs and chickens, hog slaughter weight shows an upward trend with the inclusion of technology progress but piglet survival rate has a downward trend with technologies. Broilers slaughter weight and egg lay rate are increasing with the help of technology . Climate change imposes negative impacts on all these four yield measures.

Table 1, summarizes our findings for the projected productivity changes in 2100 for the national level and in some leading production states. The presented numbers are the ensemble average across the 12 climate change scenarios. Our results indicate that climate change will decrease all the eight livestock productivity measures although less than the projected technical change so in general we still expect greater productivity but less than would have occurred in the absence of climate change.

Regional contrasts are most pronounced for cattle. Milk yields decline by as much as 11% in Florida and Texas across scenarios, while most northern states show increases, and slaughter weight and calf survival follow the same pattern. Among the seven leading cattle-producing states, South Dakota is the only one anticipating an overall increase, yet calf birth rates are projected to fall even in northern regions. Aggregated across 12 climate scenarios to the end of the century, the national average decline is 2.15%, with some states seeing losses as large as 13.72%, indicating that localized impacts can be substantially more severe than the national mean.

Hog and poultry productivity also weakens, though generally less than cattle. In the five largest hog states, slaughter weights decrease under all scenarios, yielding national average declines between 0.5% and 3.26%. Piglet survival drops by roughly 0.58% to 2.35%, which lowers today’s survival rate of about 92% to below 90% by 2100. For chickens, impacts are more modest but broad-based: broiler slaughter weight declines by less than 1% at the national level, and the layer rate of lay decreases by about 1.18% on average, with some states experiencing reductions up to 3.28% under the HadGEM2-ES RCP8.5 scenario. 

  • Integrated impact of climate change on the US livestock sector.

We compare no-livestock vs. with-livestock climate impacts across RCP 4.5 and RCP 8.5 and report decadal outcomes for social welfare, prices/quantities, and spatial production shifts. Ignoring livestock damages overstates gains from climate change; under RCP 8.5, aggregate welfare in the no-livestock case climbs from roughly $2.8B in 2030 to $29.2B by 2090 (2019$). Once livestock impacts are included, the 2090 total is $3.9B lower, driven primarily by domestic consumers’ lower surplus (~$3.0B) and a smaller producer loss (~$1.0B). Domestic producers gain modestly through mid-century under both RCPs when livestock is included, but by 2090 in RCP 8.5 the producer advantage reverses, which indicates tightening meat markets and diminished producer gains as heat-stress damages accumulate. Overall, the welfare gap between no-livestock and with-livestock scenarios demonstrates that livestock damages meaningfully erode the apparent benefits from crop-side productivity and market rebalancing.

Regarding the price–quantity patterns, Fisher indices show a broad decline in farm-level price indices and an increase in quantity indices over time, larger in RCP 8.5 than 4.5. Adding livestock damages barely moves crop indices but raises meat prices and reduces meat quantities relative to the no-livestock case by 2090 (meat prices higher by a few percentage points; quantities lower by a couple of points), consistent with lower livestock performance. Within commodities, price declines are heterogeneous: butter exhibits the deepest projected price drop (~17% by 2090, RCP 8.5), while egg prices fall only ~0.2%. On the crop side, cotton quantity can surge (up to ~81%) with large price drops (up to ~52%) under RCP 8.5; soybeans show prices down (~17%) with quantities up (~41%); corn edges above baseline by 2070 before easing below by 2090. These movements reflect supply expansions in climate-favored regions and cross-commodity substitutions.

Production centers shift modestly over the century in directions consistent with resource and climate signals: cattle west, hogs north, broilers northeast, eggs southwest. Milk production moves farthest and is scenario-sensitive: about 206 km west under RCP 8.5 vs. ~15 km under RCP 4.5 by 2090, while other livestock show smaller, similar shifts across scenarios.

In summary, FASOM’s integrated markets show that climate change expands total agricultural output and depresses broad price indices, but livestock-specific damages tighten meat markets and erode consumer gains, cutting into total welfare by late century, especially under RCP 8.5. Spatially, production gradually relocates toward climates and feed bases that remain competitive. 

 

Participation Summary

Educational & Outreach Activities

1 Webinars / talks / presentations
2 Other educational activities: 2 Ph.D. dissertations

Participation Summary:

50 Ag professionals participated
Education/outreach description:

Cheng, M., McCarl, B.A. and Fei, C., 2022. Impact of Climate Change on the US Livestock Sector. Presented at AAEA Annual Meeting

Cheng, Muxi. 2024 "Three Essays on Climate Change Impacts on the U.S. Livestock Sector". Ph.D. dissertation, Texas A&M University, College Station, Texas

Liu, Zehao Naomi. 2025 "Adapting U.S. Agriculture to a changing climate: spatial shifts in crop production, grain elevator infrastructure, and the evaluation of permanence". Ph.D. dissertation, Texas A&M University, College Station, Texas

Project Outcomes

1 Grant received that built upon this project
1 New working collaboration
Project outcomes:

This project has generated new insights into how climate change influences the productivity, profitability, and resilience of the U.S. livestock sector, offering a foundation for more sustainable agricultural systems. By quantifying heat-stress thresholds and projecting production losses across regions and species, the research provides actionable information for producers, policymakers, and researchers to better anticipate and manage climate risks.

Economically, the integration of econometric estimates into the FASOM sector model revealed how heat-related productivity declines can tighten meat markets and raise prices, particularly under high-emission scenarios. These findings highlight the economic value of timely adaptation—such as investing in cooling systems, shifting production northward, and optimizing breed or species mixes—which can preserve farm income and stabilize supply.

Environmentally, the project supports sustainability through targeted adaptation that reduces resource waste, lowers emissions intensity per unit of meat produced, and promotes efficient land and feed use under changing climate conditions. By identifying regions where production can remain viable with minimal additional resource inputs, the work advances climate-smart agricultural planning.

Socially, the project emphasizes the importance of protecting vulnerable populations, as rising meat prices and declining production disproportionately affect low-income consumers. The framework developed here enables policymakers to design adaptive programs that improve resilience for both producers and consumers, ensuring a more equitable and sustainable livestock sector in the face of climate change.

Knowledge Gained:

This project has advanced understanding of how weather affects the U.S. livestock sector, particularly heat stress impacts on productivity, welfare, and adaptation potential. By integrating econometric modeling with sector-level optimization through the Forestry and Agricultural Sector Optimization Model (FASOM), the team developed a comprehensive framework linking climate variables, livestock performance, market equilibrium, and distributional welfare outcomes.

Empirical analysis identified clear temperature–humidity index (THI) thresholds for cattle, hogs, and poultry beyond which productivity and reproductive performance decline sharply. Cattle exhibited higher tolerance to moderate heat but greater sensitivity at extreme conditions, while hogs and poultry were vulnerable at lower THI levels. Projections using CMIP6 climate scenarios indicate that, without adaptation, climate change will lower livestock productivity nationwide by 0.5–3% by 2100, with the greatest losses in the southern states. These results provide quantitative evidence of regional vulnerability and support targeted adaptation investment.

Embedding these productivity projections into FASOM revealed that climate-induced livestock damages will tighten meat markets, elevate prices, and erode consumer welfare, offsetting apparent crop-side gains. By 2090 under RCP 8.5, aggregate welfare is projected to be about $3.9 billion lower than scenarios excluding livestock damages. The model also identified adaptive shifts—such as geographic relocation of production northward, breed and species mix adjustments, and increased investment in cooling systems—that can substantially mitigate losses.

Overall, this study demonstrates that climate change imposes measurable, uneven pressures on the U.S. livestock sector, with disproportionate effects in heat-prone southern regions and among low-income consumers. It provides a data-driven foundation for designing adaptation and mitigation policies, guiding future research on technology innovation, resource allocation, and equity in agricultural resilience.

Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and should not be construed to represent any official USDA or U.S. Government determination or policy.