Abstract: Feed crop cultivation dominates land use in North Savo region where the value of dairy milk and beef production is approx. 70 % of the total value of agricultural production. Grass silage is produced on cultivated grasslands through grass-cereal rotations. There are restricted or no markets for silage. Dairy and beef farms, directly dependent on the quantity and quality of silage, are vulnerable to adverse weather conditions. Long-term viability of farming is dependent on the long-term productivity development of feed crop production, and ability to cope with adverse weather conditions, affecting both quality and quantity of feed. Adaptation challenges include more frequent wet and dry conditions, increased pest and disease pressure, and overwintering problems, affecting quantity and quality of grass and cereals harvests. More frequent wet conditions are combined with larger farm size, higher axle loads of heavy machinery, increased risk of soil compaction, and high timeliness costs due to rapidly deteriorating feed quality if not harvested at the right time. Some solutions impose new investments and high costs. Results from bio-physical modeling show a clear need for new cultivars better suited in future climate. Various other solutions discussed with the farmers and extension specialists include improved maintenance of drainage and soil structure, to be promoted by crop rotation, soil improvements such as liming, as well as better crop protection. However, higher grass yields may be realized without considerably increased inter-annual yield variability. Needed long-term investments may thus lead to increased productivity under favorable market and policy conditions. No Label

Abstract: farm structure in Austria and level of educationchallenges of more volatile markets / more uncertain yieldsmore uncertainty about revenues and costsspecialisation and liquidity problems – not alleviated by EU direct paymentspolitical measures: late, uncertain, no legal title, wrong incentivestax credits – not relevant in Austria for most farmsprice hedging instruments steep learning curve and intransparent marketsmost frequently used: service of buying co-operatives control of accumulation risksdetails of contract are attractive for farmerse.g. monthly benefits for milk producersbenefits at the time of sale for pig, piglet, grain producerscombination with production risk insurance with discountsgovernment support during introduction period / as a new policy instrumentmarketing and sales: wholesale buyers / dairies / producer organisations offer margin insurance as a service

Abstract: Exploitation of alternative water sources is expected to grow in the decades to come in water-stressed countries with fast population growth, especially in regions where a further decline of natural freshwater availability is expected due to climate change. Increasing utilization of non-freshwater usually leads to salinity build-up in fields and water sources as well as accumulation of various pollutants – both having a considerable impact on the suitability of non-freshwater for irrigation due to constraints associated with crop salinity tolerance and food safety regulations.We developed a linked CGE – farm-level model of a water economy with representation for multiple water types characterized by different qualities. We employ the model to assess the impact of water shortage on the Israeli economy, where a steadily growing water scarcity is leading to an increasing utilization of alternative water sources. We simulate water shortage scenarios based on the Long Term National Master Plan for The Water Economy developed by the Israeli Water Authority (IWA).The linked CGE – farm-level model provides a mechanism for estimating the Constant Elasticity of Substitution (CES) rates between different irrigation water types used in agriculture. This mechanism accounts for the effects of salinity on yields and takes into consideration food safety regulations for irrigating crops with treated wastewater. We demonstrate that, in contrast to previous studies, CES rates between different water types are not identical and generally lower than previously assumed – differences that can be attributed to the constraints associated with crop salinity tolerance and food safety regulations.Our results reveal that water shortage can lead to a significant decline of Israel’s GDP, where a considerable part of the decline is attributed to the decrease in agricultural outputs. The magnitude of the impact depends on the underlying assumptions regarding future desalination capacity. To further study the effect of desalination, we run simulations under various desalination levels and examine its impact on the GDP. We also examine the extent to which the impact of water shortage is sensitive to CES rates between different irrigation water types. No Label