Sheng, YuZhao, ShijiYang, Sansi2025-06-242025-06-240140-9883ORCID:/0000-0002-8467-6213/work/173374585http://www.scopus.com/inward/record.url?scp=85110221414&partnerID=8YFLogxKhttps://hdl.handle.net/1885/733764881This paper investigates the dynamic impact of weather shocks on agricultural total factor productivity (TFP) of Australian broadacre industry, by applying a Panel Error Correction model (PECM) to the data of 32 agricultural regions over the period 1978–2013. In response to weather shocks, farmers take adaptive actions by adjusting their output and input structures to alleviate weather-induced loss in productivity. Moreover, farmers in regions with the least favorable climate condition are found to adapt to weather shocks more rapidly than those in regions with more favorable climate condition. Our finding highlights the importance of public policies to encourage farmers to improve adaptive capacities in the events of weather shock.We acknowledge the data supports from Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), and supports from National Natural Sciences Foundation of China ( 71333013 , 71803189 ) and Chinese Academy of Sciences ( Y02015004 and KSZD-EW-Z-021-1 ). All errors belong to the authors.enPublisher Copyright: © 2021 Elsevier B.V.Adaptive capacityAgricultural TFPCross-region comparisonWeather shocks202110.1016/j.eneco.2021.10541785110221414