Abstract: The current paper investigates the medium term economic impact of climate changes on the EU agriculture. The yield change data under climate change scenarios are taken from the BIOMA (Biophysical Models Application) simulation environment. We employ CAPRI modelling framework to identify the EU aggregate economic effects as well as regional impacts. We take into account supply and market price adjustments of the EU agricultural sector as well as technical adaptation of crops to climate change. Overall results indicate an increase in yields and production level in the EU agricultural sector due to the climate change. In general, there are relatively small effects at the EU aggregate. For example, the value of land use and welfare change by approximately between -2% and 0.2%. However, there is a stronger impact at regional level with some stronger effects prevailing particularly in the Central and Northern EU and smaller impacts are observed in Southern Europe. Regional impacts of climate change vary by a factor higher up to 10 relative to the aggregate EU impacts. The price adjustments reduce the response of agricultural sector to climate change in particular with respect to production and income changes. The technical adaption of crops to climate change may result in a change production and land use by a factor between 1.4 and 6 relative to no-adaptation situation.

Abstract: The diversity in farmers’ objectives and responses to external drivers is usually not considered in integrated assessment studies that investigate impacts and adaptation to climate and socio-economic change. Here, we present an approach to assess how farmers’ stated objectives relate to their currently implemented practices and to preferred adaptation options, and we discuss what this implies for assessments of future changes. We based our approach on a combination of multi-criteria decision-making methods. We consistently assessed the importance of farmers’ objectives and adaptation preferences from what farmers say (based on interviews), from what farmers actually do (by analysing current farm performance) and from what farmers want (through a selected alternative farm plan). Our study was performed for six arable farms in Flevoland, a province in the Netherlands. Based on interviews with farmers, we reduced the long list of possible objectives to the most important ones. The objectives we assessed included maximization of economic result and soil organic matter, and minimization of gross margin variance, working hours and nitrogen balance. In our sample, farmers’ stated preferences in objectives were often not fully reflected in realized farming practices. Adaptation preferences of farmers largely resembled their current performance, but generally involved a trend towards stated preferences. Our results suggest that in Flevoland, although farmers do have more objectives, in practical decision-making they focus on economic result maximization, while for strategic decision-making they account for objectives influencing long-term performance and indicators associated with sustainability, in this case soil organic matter.

Abstract: The empirical evidence of decline in ecosystem services (ES) over the last century has reinforced the call for ES quantification, monitoring and valuation. Usually, only provisioning ES are marketable and accounted for, whereas regulating, supporting and cultural ES are typically non-marketable and overlooked in connection with land-use or management decisions. The objective of this study was to quantify and value total ES (marketable and non-marketable) of diverse production systems and management intensities in Denmark to provide a basis for decisions based on economic values. The production systems were conventional wheat (Cwheat), a combined food and energy (CFE) production system and beech forest. Marketable (provisioning ES) and non-marketable ES (supporting, regulating and cultural) ES were quantified by dedicated on-site field measurements supplemented by literature data. The value of total ES was highest in CFE (US$ 3142 ha(-1) yr(-1)) followed by Cwheat (US$ 2767 ha (1) yr(-1)) and beech forest (US$ 2328 ha(-1) yr(-1)). As the production system shifted from Cwheat – CFE-beech, the marketable ES share decreased from 88% to 75% in CFE and 55% in beech whereas the non-marketable ES share increased to 12%, 25% and 45% of total ES in Cwheat, CFE and beech respectively, demonstrating production system and management effects on ES values. Total ES valuation, disintegrated into marketable and non-marketable share is a potential way forward to value ES and `tune’ our production systems for enhanced ES provision. Such monetary valuation can be used by policy makers and land managers as a tool to assess ES value and monitor the sustained flow of ES. The application of ES-based valuation for land management can enhance ES provision for maintaining the productive capacity of the land without depending on the external fossil-based fertilizer and chemical input. (C) 2013 Elsevier Ltd. All rights reserved.