Mittenzwei, K., Persson, T., Höglind, M., & Kværnø, S. (2017). Combined effects of climate change and policy uncertainty on the agricultural sector in Norway. Agric. Syst., 153, 118–126. Abstract: Highlights • A framework to study climate and policy uncertainty in agriculture is presented. • Combining both sources of uncertainty has ambiguous effects on agriculture. • Uncertainty needs to be highlighted in modelling tools for policy analysis. Abstract Farmers are exposed to climate change and uncertainty about how that change will develop. As farm incomes, in Norway and elsewhere, greatly depend on government subsidies, the risk of a policy change constitutes an additional uncertainty source. Hence, climate and policy uncertainty could substantially impact agricultural production and farm income. However, these sources of uncertainty have, so far, rarely been combined in food production analyses. The aim of this study was to determine the effects of a combination of policy and climate uncertainty on agricultural production, land use, and social welfare in Norway. Output yield distributions of spring wheat and timothy, a major forage grass, from simulations with the weather-driven crop models, CSM-CERES-Wheat and, LINGRA, were processed in the a stochastic version Jordmod, a price-endogenous spatial economic sector model of the Norwegian agriculture. To account for potential effects of climate uncertainty within a given future greenhouse gas emission scenario on farm profitability, effects on conditions that represented the projected climate for 2050 under the emission scenario A1B from the 4th assessment report of the Intergovernmental Panel on Climate Change and four Global Climate Models (GCM) was investigated. The uncertainty about the level of payment rates at the time farmers make their management decisions was handled by varying the distribution of payment rates applied in the Jordmod model. These changes were based on the change in the overall level of agricultural support in the past. Three uncertainty scenarios were developed and tested: one with climate change uncertainty, another with payment rate uncertainty, and a third where both types of uncertainty were combined. The three scenarios were compared with results from a deterministic scenario where crop yields and payment rates were constant. Climate change resulted in on average 9% lower cereal production, unchanged grass production and more volatile crop yield as well as 4% higher farm incomes on average compared to the deterministic scenario. The scenario with a combination of climate change and policy uncertainty increased the mean farm income more than a scenario with only one source of uncertainty. On the other hand, land use and farm labour were negatively affected under these conditions compared to the deterministic case. Highlighting the potential influence of climate change and policy uncertainty on the performance of the farm sector our results underline the potential error in neglecting either of these two uncertainties in studies of agricultural production, land use and welfare. Keywords: Climate change; Norway; Agriculture; Policy uncertainty; Modelling; LINGRA; CSM-CERES-Wheat; DSSAT Permanent link \| Save citation: RTF PDF LaTeX Markdown \| Export record: BibTeX Endnote ISI RIS Atom XML MODS XML ODF XML Word XML
Kässi, P., Känkänen, H., Niskanen, O., Lehtonen, H., & Höglind, M. (2015). Farm level approach to manage grass yield variation under climate change in Finland and north-western Russia. Biosystems Engineering, 140, 11–22. Abstract: Cattle feeding in Northern Europe is based on grass silage, but grass growth is highly dependent on weather conditions. If ensuring sufficient silage availability in every situation is prioritised, the lowest expected yield level determines the cultivated area in farmers’ decision-making. One way to manage the variation in grass yield is to increase grass production and silage storage capacity so that they exceed the annual consumption at the farm. The cost of risk management in the current and the projected future climate was calculated taking into account grassland yield and yield variability for three study areas under current and mid-21st century climate conditions. The dataset on simulated future grass yields used as input for the risk management calculations were taken from a previously published simulation study. Strategies investigated included using up to 60% more silage grass area than needed in a year with average grass yields, and storing silage for up to 6 months more than consumed in a year (buffer storage). According to the results, utilising an excess silage grass area of 20% and a silage buffer storage capacity of 6 months were the most economic ways of managing drought risk in both the baseline climate and the projected climate of 2046-2065. It was found that the silage yield risk due to drought is likely to decrease in all studied locations, but the drought risk and costs implied still remain significant. (C) 2015 IAgrE. Published by Elsevier Ltd. All rights reserved. Keywords: silage grass; risk management; dairy farms; buffer storage; agricultural economics; grassland modelling; dairy-cows; impact; security; timothy; harvest; future; growth; norway; europe; time Permanent link \| Save citation: RTF PDF LaTeX Markdown \| Export record: BibTeX Endnote ISI RIS Atom XML MODS XML ODF XML Word XML

Abstract: Highlights • A framework to study climate and policy uncertainty in agriculture is presented. • Combining both sources of uncertainty has ambiguous effects on agriculture. • Uncertainty needs to be highlighted in modelling tools for policy analysis. Abstract Farmers are exposed to climate change and uncertainty about how that change will develop. As farm incomes, in Norway and elsewhere, greatly depend on government subsidies, the risk of a policy change constitutes an additional uncertainty source. Hence, climate and policy uncertainty could substantially impact agricultural production and farm income. However, these sources of uncertainty have, so far, rarely been combined in food production analyses. The aim of this study was to determine the effects of a combination of policy and climate uncertainty on agricultural production, land use, and social welfare in Norway. Output yield distributions of spring wheat and timothy, a major forage grass, from simulations with the weather-driven crop models, CSM-CERES-Wheat and, LINGRA, were processed in the a stochastic version Jordmod, a price-endogenous spatial economic sector model of the Norwegian agriculture. To account for potential effects of climate uncertainty within a given future greenhouse gas emission scenario on farm profitability, effects on conditions that represented the projected climate for 2050 under the emission scenario A1B from the 4th assessment report of the Intergovernmental Panel on Climate Change and four Global Climate Models (GCM) was investigated. The uncertainty about the level of payment rates at the time farmers make their management decisions was handled by varying the distribution of payment rates applied in the Jordmod model. These changes were based on the change in the overall level of agricultural support in the past. Three uncertainty scenarios were developed and tested: one with climate change uncertainty, another with payment rate uncertainty, and a third where both types of uncertainty were combined. The three scenarios were compared with results from a deterministic scenario where crop yields and payment rates were constant. Climate change resulted in on average 9% lower cereal production, unchanged grass production and more volatile crop yield as well as 4% higher farm incomes on average compared to the deterministic scenario. The scenario with a combination of climate change and policy uncertainty increased the mean farm income more than a scenario with only one source of uncertainty. On the other hand, land use and farm labour were negatively affected under these conditions compared to the deterministic case. Highlighting the potential influence of climate change and policy uncertainty on the performance of the farm sector our results underline the potential error in neglecting either of these two uncertainties in studies of agricultural production, land use and welfare.

Keywords: Climate change; Norway; Agriculture; Policy uncertainty; Modelling; LINGRA; CSM-CERES-Wheat; DSSAT

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Abstract: Cattle feeding in Northern Europe is based on grass silage, but grass growth is highly dependent on weather conditions. If ensuring sufficient silage availability in every situation is prioritised, the lowest expected yield level determines the cultivated area in farmers’ decision-making. One way to manage the variation in grass yield is to increase grass production and silage storage capacity so that they exceed the annual consumption at the farm. The cost of risk management in the current and the projected future climate was calculated taking into account grassland yield and yield variability for three study areas under current and mid-21st century climate conditions. The dataset on simulated future grass yields used as input for the risk management calculations were taken from a previously published simulation study. Strategies investigated included using up to 60% more silage grass area than needed in a year with average grass yields, and storing silage for up to 6 months more than consumed in a year (buffer storage). According to the results, utilising an excess silage grass area of 20% and a silage buffer storage capacity of 6 months were the most economic ways of managing drought risk in both the baseline climate and the projected climate of 2046-2065. It was found that the silage yield risk due to drought is likely to decrease in all studied locations, but the drought risk and costs implied still remain significant. (C) 2015 IAgrE. Published by Elsevier Ltd. All rights reserved.