Response of Florida citrus growers to the freezes of the 1980s

Abstract

The decade of the 1980s brought a set of severe freezes to central Florida, killing many of the state's citrus trees. The reactions of Florida's citrus growers to these freezes suggest that the experience of extreme climate events induces adjustments in risk-hedging strategies. Replanting patterns and changes in the varietal mix are found to be consistent with a portfolio model of investment behavior if it is assumed that growers' climate expectations have been updated in response to the recent freezes. Orange growers now appear to perceive an increased risk of freeze damage in those areas that were heavily affected by these events. This suggests that climate expectations and investment patterns will tend to evolve in response to changes in the frequency of extreme climate events brought about by global climate change. -Author