Well I would ans the question the little brief what i beleive is both climatic factors and government policies affect the farmers economy as you see..

According to climatic factors .

Farmers depend heavily on weather-rainfall,drought or else directly affect the crop

-excessive rain or drought can harm the crop

Impact :reduced crop yield= less income

Highest cost of irrigation and damage control

Now if we see under the concern of government policies

Policies like subsides and the famous longing topic minimum support price( MSP) affect farmers

Impact : good policies= lead to good stability and no extra cost or prblms to farmers

Bad policies= vulnerability to market forces

Climatic factors—such as temperature shifts, extreme weather events, droughts, and floods—have a direct and profound impact on farmers’ economic stability and indirectly shape government policy responses, especially in rural and structurally weaker regions. This dual effect can be interpreted through the lens of institutional theory and socio-technical systems, which also inform contemporary research on digital transformation in rural municipalities (Patalon & Wyczisk , 2024).

For farmers, climate variability influences crop yields, soil health, water availability, and pest dynamics—each of which affects economic outcomes, risk exposure, and long-term resilience (IPCC, 2022). As a result, agricultural households and businesses are increasingly dependent on adaptive capacities, such as access to real-time weather data, predictive analytics, and precision farming tools, many of which rely on digital infrastructure and public sector support.

In turn, government policies evolve in response to climatic stressors. Policies may include:

• Financial mechanisms such as crop insurance and disaster relief,
• Subsidies for climate-smart agriculture and technology adoption,
• Regulations around land use and water management, and
• Investments in digital infrastructure to support rural innovation and early warning systems (FAO, 2021).

Here, our research on municipal digital transformation and institutional isomorphism offers a critical bridge: Rural municipalities are becoming key actors in mediating between national climate policies and local agricultural practices. Municipalities must institutionalize both digital capabilities and climate responsiveness, often under resource constraints and institutional pressures (DiMaggio & Powell, 1983; Hinings et al., 2018). Climatic shocks can thus act as external triggers for institutional change, pushing local governments to integrate sustainability and digital tools into their service portfolios.

Hinings, B., Gegenhuber, T., & Greenwood, R. (2018). Digital innovation and transformation: An institutional perspective. Information and Organization, 28(1), 52–61.

IPCC. (2022). Climate Change 2022: Impacts, Adaptation and Vulnerability. Intergovernmental Panel on Climate Change. https://www.ipcc.ch/report/ar6/wg2/

Tornatzky, L. G., & Fleischer, M. (1990). The Processes of Technological Innovation. Lexington Books.

Patalon & Wyczisk (2024). Mapping Digital Transformation of Municipalities through the Lens of Institutional Isomorphism. International Journal on Social and Education Sciences (IJonSES), 6(1), 51–67.