2. Materials and Methods
We used a panel dataset for 77 Russian regions for 2002–2019 (
T = 18). Following Ahumada and Cornejo [
22], we consider several groups of factors describing the climatic, technological and price dynamics in Russian agriculture (
Table 1).
The choice of factors is determined by the availability of data and the perceived influence of the variables. We use two main indicators of agricultural productivity (yields and gross harvests) as the dependent variables for the four main crops: grain, potato, vegetables (onion, cabbage, beet, cucumber, tomato, pepper, eggplant, lettuce) and fruit and berry (pomaceous, drupaceous and berries).
The average temperatures and precipitation of the coldest (January) and the warmest (July) months are the most important factors to assess agricultural productivity [
14]. As climate change increases the frequency of extreme weather events, we additionally use their deviations from the normal values for the given month. Temperature and precipitation data were obtained from the Russian Statistical Yearbook published by the Federal State Statistics Service of Russia (Rosstat) [
28].
We also used several variables describing the global climatic patterns. There is evidence that CO
2 concentration might have a positive influence on plant growth [
32,
33]. As we do not have clear data for Russia, we presume that the genuine values for Russia are time-correlated with global ones. We used the values of CO
2 concentration from the Mauna Loa Observatory (Waimea, HI, USA) as the baseline [
29]. Other greenhouse gases, such as methane, also might influence the growth of the crops [
34], but due to the high correlation with CO
2 concentrations and the consequent bias of estimates, they were excluded from the analysis.
Other world climatic variables are the occurrences of El Niño and La Niña events in the Pacific Ocean. These events are usually associated with floods and droughts in southeastern South America [
22]. El Niño and La Niña do not directly influence most of the Eurasian continent and generally have an impact on North and South America, Southern Asia, South-Eastern Africa and Australia. Although, the Roshydromet pointed out that El Niño had a significant effect on the record-breaking high temperatures in autumn 2020 in Russia [
35]. We consider the presence of these events as dummy variables in each year that might affect both the plant growth conditions and the situation on the global crop markets. The data were obtained from the Golden Gate Weather Services website, managed by J. Null [
30].
The group of technological factors is represented by the regional endowment with tractors, combine harvesters and fertilizers, which are the major factors of the positive changes in Russian agricultural sector over the past twenty years [
18,
19]. Though crop lands have declined significantly from 116.5 mln ha in 1990 to 79.1 mln ha in 2020 with simultaneous increases in yields, we still consider this variable as one of the important predictors. Data for these variables were obtained from the Russian Federation Unified Interagency Information and Statistical System (EMISS), which is a project of
Rosstat, the official public statistics body of the Russian Federation [
27].
The last group of variables combines producer prices for crops in Russia, which can influence farmers’ decisions about crop management practices [
22]. These data were obtained from FAO [
31], so they are not fully compatible with the crops that we include in the list of dependent variables.
Various types of models fit the structure of panel data quite effectively. To choose the right one, we followed the approach to model choice described by Dougherty [
36]. Since the data sample for the Russian regions is not random, the model with fixed effects should be preferred to the model with random effects. In addition, we also ran an
F-test for the null hypothesis that all regions have a common intercept (see
Appendix B,
Table A3). In all cases, the null hypothesis was rejected, so the fixed-effects model is also preferable to the pooled OLS regression. It is notable that the approach of fixed effects panel modelling using a within-groups estimator is quite common in studies of yield dynamics and its dependence on climate change [
23,
37,
38,
39].
In its generalized form, the specification of the obtained model is as follows:
where
AP is the agricultural productivity indicator (yield or gross harvest),
RC stands for the list of Russian climate indicators (see
Table 1),
WC combines the world climate variables,
T is for the group of technological variables and
P denotes the prices vector. As for the indices,
c = 1, …, 4 stands for a specific crop,
i = 1, …, 77—Russian regions and
t = 1, …, 18—time period.
is the vector of model parameters,
reflects the fixed effects for Russian regions and
is the error term.
Using a lot of variables to explore the yields and harvest dynamics is good in terms of interpretation and decreasing the model error, but also might cause the multicollinearity problem. Though the panel data analysis itself reduces the multicollinearity problem compared with cross-sectional OLS [
40], the relationships between variables can still cause some bias. In our sample, obvious linkages exist between temperature and precipitation variables with their deviations. To avoid the instability and bias of the estimates due to the high correlation between them, we assessed two specifications for each crop and productivity indicator. The other variables were added in each model one by one, and the coefficients remained stable.
There are several other well-known problems that occur while modelling the panel regression. In general, the structure of data causes autocorrelation and heteroskedasticity. To analyze autocorrelation, we used the test developed by Wooldridge [
41] and implemented in Stata by Drukker [
42]. To test heteroskedasticity in panel models, we used the likelihood ratio test suggested by Wiggins and Poi [
43]. The testing results (
Appendix B,
Table A3) show strong evidence of the presence of heteroskedasticity in all models. The correlation over time mostly appears in models with grain and vegetable yields and harvests as the dependent variables. The same tests for potatoes are less significant and the models on fruit yields and harvests show no autocorrelation at all. We employed a common way to avoid possible negative effects of these problems by using the heteroskedasticity and autocorrelation-consistent (HAC) standard errors [
44,
45].
All calculations and visualizations were made using Stata [
46] and tables with regression results were obtained via the
asdoc package for Stata [
47].
3. Results
Table 2 presents the results for the initial values of the temperature and precipitation as predictors of yields for different crops.
The climatic variables significantly influence all yields of crops within our study. The average temperature of January is highly significant and has the expected positive regression coefficient, which means that the softening temperatures in January through 2002–2019 contributed to higher yields. A warming of 1 °C in January on average caused an increase in grain yield by 0.016 tons per ha, fruit and berries yield by 0.06 tons per ha, potato yield by 0.098 tons per ha and vegetable yield by 0.076 tons per ha.
In contrast, higher July temperatures lead to droughts, which is reflected in negative coefficients. Although precipitation in Russia has been increasing over the past 40 years [
11], in the model obtained, only January precipitation is significant for most crops except fruit.
CO2 concentration has a strong positive effect on the growth of all crops, confirming the original hypothesis. Nevertheless, the specifics of the data used in the model force us to be cautious about the values of the coefficients because of possible bias.
The influence of the El Niño and La Niña events on crop yields is quite controversial. We found a strong positive influence of El Niño on grain, but a significant negative influence on vegetables. The La Niña dummy also showed a positive linkage for grain, but negative for fruit. This is quite consistent with other studies. For example, for Southeastern USA, El Niño has a negative impact on corn, winter vegetables, and strawberries but a positive influence on winter wheat. During La Niña years in this region, wheat, tomato and green pepper yields are higher, while the pasture crops and subtropical fruits yields might decrease [
8]. In Canada, which has similar climatic conditions to Russia, the El Niño Southern Oscillation has also caused an increase in wheat and barley yields in recent years [
48].
Cropland is significant only for grain and fruit. This is due to the largest share being grain land—more than half of all arable land. Over the past 20 years, grain acreage has increased slightly from 45.6 mln ha in 2000 to 46.6 mln ha in 2019. At the same time, the area under vegetables decreased from 7.4 to 5.2 mln ha, under potatoes from 2.8 to 1.3 mln ha and under fruit and berries from 0.8 to 0.5 mln ha.
The fertilizer variables showed different results. During the study period, the use of organic fertilizers increased by 1.8 times, and minerals—almost 3 times. This may be the reason for the more obvious and intense positive effect of mineral fertilizers on yields. The results for organic fertilizers are contradictory: they showed a strong but opposite effect on grains and vegetables. Though the effects of the organic fertilizer on crop nutrition are still not well-studied [
49], the negative coefficient on vegetable yield is hard to explain as the expected influence should be positive [
50].
The other technological factors also do not show the expected results. Tractors have no significant coefficients except for a weak positive influence on potato yields. Estimates for the combine harvesters are even more contradictory and show significant negative effects for the grain and fruit, but positive effects for the vegetables and potato. However, the coefficients are very small, which means that the possible impact is not large.
The prices influence on yields is still questionable in the literature. Lobel et al. [
51] concluded that the estimates of the dependence of yields from prices vary a lot due to the strong interrelationships between prices, technology and weather factors. Miao et al. [
52] found a significant influence of prices on corn yields, but not for soybean yields. In model (1), we did not find any impact of prices on grain yields. However, potato prices have a strong positive influence not only on potato but also on other crops. Negative significant coefficients for vegetable prices may be the result of incomplete comparability of data from different sources or due to the influence of unaccounted factors.
The worst results are obtained for regression (2) on fruit and berries. The number of significant variables is the smallest and the R-squared is only 0.28. For the other models, the obtained R-squared value is more reasonable and consistent with similar studies [
14,
23,
25].
Finally, we calculated the individual effects for the specific regions. The most significant positive effects over 2002–2019 were obtained for Southwestern Russia, especially for the Caucasian regions. For example, for grain yields (model 1), the highest values were found for the Republic of North Ossetia–Alania (3.06 tons per ha), the Kabardino-Balkarian Republic (2.62), Republic of Adygea (2.36), the Karachay-Cherkess Republic (1.12) and the Republic of Dagestan (1.09). These results are consistent with other studies [
14,
23] and are explained by the fact that these regions are the most productive in agricultural terms due to a favorable climate.
On the contrary, negative values for grain yields are inherent to the majority of Siberian regions such as Krasnoyarsk Krai (−2.94), Tomsk Oblast (−1.15), Omsk Oblast (−1.02), and Irkutsk Oblast (−0.34). However, moderate positive values were obtained for the Altay Krai (0.34) and Khakassia Republic (0.05), which are the most developed agricultural regions of South Siberia [
16,
53].
The central part of Russia mostly shows moderate positive values of region-specific effects: Ivanovo Oblast (0.51), Kaluga Oblast (0.50) Bryansk Oblast (0.40), Belgorod Oblast (0.16), and Kostroma Oblast (0.08). According to other studies, these regions will benefit from global warming, but this effect will be limited [
17,
21]. All these findings indicate the uncaptured effects of difference in soil productivity that greatly affect yield potential in Russian regions [
54].
The next list of models contains the same dependent variables (yields) but uses the deviations of climate variables as predictors (
Table 3).
The results for models 5–8 are similar to those for models 1–4, and the coefficients for the same predictors are rather stable. However, some discrepancies should be discussed. The ratio to the normal amount of precipitation in January is not significant for grain apart from the previous results with the initial indicator. Additionally, the same ratio for July became significant for potato. In this model, potato is also affected by La Niña, but the coefficient for fruit has become insignificant. The major difference with previous results is in the prices. In model (5), wheat price and oat price have significant but opposite effects on grain yields. This proves the multicollinearity of prices with weather and other factors as discussed above. A positive link with wheat was expected, as it is one of the main Russian crops. The shares of winter and spring wheat in the total area of grains and legumes are 34% and 26% in 2019, respectively. The share of oats is only 5%, so the possible significant negative effect of its prices on grain yields might be explained by the other unaccounted factors.
We also obtained the fixed effects models for harvests (see
Table A1 and
Table A2 in
Appendix A). The main results are quite similar to the yields models, but the R-squared values are lower. The major differences in estimates were revealed in the technological group of factors. The organic fertilizers are not significant at all in models 9–16. The positive effect of mineral fertilizers is also less significant and appears mainly in grain. The coefficients for combine harvesters and tractors are more reasonable in these models than for yields. These variables positively influence gross harvests of grain and potato.
4. Discussions and Conclusions
In this paper, we made the first attempt to estimate the influence of different factors on agricultural productivity in Russian regions over the past two decades. Most previous studies have focused only on two factors: temperature and precipitation. In contrast, we considered a large set of variables, including Russian and global climatic conditions, technological change, and producer prices for major crops. The results obtained are quite reasonable and consistent with other studies and common knowledge.
All regressions prove the significant influence of global and local climate conditions on yields and gross harvests for main crops. The January temperature and its deviation from the normal values have a strong positive contribution to the increase in yields and gross harvests for all crops. According to
Roshydromet estimates, the climate in Russia is warming about 2.5 times more intensely than the global average [
11]. The softening of winters in Russia could be an important factor in the future development of agriculture, especially for the Ural, Volga, and Siberian regions. This result for Russia is consistent with studies on other countries with similar climatic conditions. Projections to the middle of the 21st century show a significant expansion of winter crops in Finland [
6] and Canada [
9].
The other side of the global warming trend is droughts. The forecasted increase in climate aridity poses additional risks to crop yields [
15]. In our models, the July temperatures have a significant and strong negative influence on most of the specifications. The main risks to crop production in Russia are increased aridity in the southwestern regions, which are currently the main producers of agricultural products, and the increased negative impact of pests and crop pathogens, which may spread their habitat to other regions.
We found a strong negative effect of winter precipitation for all crops, but almost no effect of July precipitation, except for potato yield in model (7). Since most of the literature proves the existence of a positive relationship between yield and summer precipitation [
23], this result can be explained by the unaccounted influence of precipitation in other months. In addition, there are spatial differences in crop response to precipitation due to a combination of latitudinal temperature gradient, altitudinal precipitation gradient, and the technological water infrastructure such as hydrological network and irrigation system [
26].
As was mentioned above, the geographical location of Russia makes it very sensitive to global climate changes. Our modelling results support this assumption since global climate variables such as El Niño and La Niña events have a significant impact on agriculture in Russia, especially on grain yields and gross harvests. The CO
2 concentrations also show a strong positive significant effect, which is consistent with other studies in the literature [
22,
55]. However, there is also evidence of a possible effect of decreased protein concentration in cereal crops [
56,
57].
Although technological factors have been the main drivers of Russian agricultural development over the past 20 years, their influence is not obvious in our models. The influence of crop land and machinery is limited and, in some models, controversial. This may be due to poor data quality and aggregation errors. Assessing the impact of these factors requires further research, which would consider disaggregated data on sown areas and combine harvesters by type of crop.
Fertilizer application made the most obvious contribution to the increase in yields and gross harvests. Mineral fertilizers are used more intensively in Russia, and according to modeling results, they had a sustained positive impact on yields, while the impact of organic fertilizers was limited. Nevertheless, the potential of the fertilizer market in Russia is not explored. The average volume of mineral fertilizers used in Russia is 48 kg/ha, while in European countries, the annual consumption of mineral fertilizers per 1 ha of arable land averages 149 kg [
58]. In addition, the use of combinations of mineral and organic fertilizers can further increase yields [
59] and accumulation of soil organic carbon [
60].
We found that producer price factors are related with weather variables, which is consistent with other studies [
51]. The use of temperature and precipitation deviations from normal values made wheat price a significant predictor of grain yield in model (4) in contrast to the initial weather conditions in model (1). However, the positive impact of potato prices on yield and gross harvest and the negative impact of vegetable prices were stable and significant in all obtained models. In our opinion, the negative coefficients are mainly explained by a gradual decrease in vegetable prices since 2010, along with the positive dynamics of crop yields.
Although we confirmed the main research hypothesis of positive impact of climate change on agricultural productivity in Russia, the fraction of variance unexplained is still significant in all obtained models. Directions for further analysis and refinement of modelling results can be formulated as follows:
Data set supplementation with other factors of agricultural productivity. There are unaccounted factors that might bias the estimations, such as labor, use of modified seeds or irrigation practices [
22]. This is especially important for interregional comparison. For instance, the Southwestern regions of Russia are export-oriented and, consequently, may employ more agricultural practices to increase yields.
Use of more disaggregated data for both dependent and explanatory variables. The contradictory results for croplands and combine harvesters not divided by crop type have already been discussed above. This is also true for grain yield. For instance, winter and spring wheat also differ in their response to climatic conditions [
15,
17].
Using additional weather data. Although weather conditions during the coldest and warmest months of the year explain the dynamics of yields and gross harvests relatively well, models that take into account temperatures and precipitation in all seasons of the year are more accurate [
23].
Considering the spatial heterogeneity. Due to its vast territory, Russia is a very heterogeneous country in many dimensions [
61], and climate change trends have a multidirectional impact on Russian agriculture in different regions [
21].
Testing the different specifications. There is some evidence of the nonlinear nature of the influence of climatic conditions on yield, so it is possible to consider logarithmic or polynomial specifications [
23,
38].