I estimate stochastic production functions by regressing crop yields on precipitation,
temperature and land variables. One of the strengths of this paper is the use of the Standardized Precipitation Index (SPI) and the precipitation intensity index to account for droughts and rainfall variability and the inclusion of the degree-days to capture the effects of temperature on crop yields. (Note 1) Hence, this study will contribute to the existing literature on impact studies of climate variability.