Abstract: Agricultural practice is facing multiple challenges under volatile commodity markets, inevitable climate change, mounting pest pressure and various other environment-related constraints. The objective of this research is to present a dynamic optimization model of crop rotations and farm management and show its suitability for economic analysis over a 30 year time period. In this model, we include management practices such as fertilization, fungicide treatment and liming, and apply it in a region in Southwestern Finland. Results show that (i) growing pest pressure favours the cultivation of wheat-oats and wheat-oilseeds combinations, while (ii) market prices largely determine the crops in the rotation plan and the specific management practices adopted. The flexibility of our model can also be utilized in evaluating the value of other management options such as new cultivars under different projections of future climate and market conditions.

Abstract: Agricultural vulnerability to climate change is likely to vary considerably between agro-environmental regions. Exemplified on Austrian cropland, we aim at (i) quantifying climate change impacts on agricultural vulnerability which is approximated by the indicators crop yields and gross margins, (ii) developing robust crop production portfolios for adaptation, and (iii) analyzing the effect of agricultural policies and risk aversion on the choice of crop production portfolios. We have employed a spatially explicit, integrated framework to assess agricultural vulnerability and adaptation. It combines a statistical climate change model for Austria and the period 2010-2040, a crop rotation model, the bio-physical process model EPIC (Environmental Policy Integrated Climate), and a portfolio optimization model. We find that under climate change, crop production portfolios include higher shares of intensive crop management practices, increasing average crop yields by 2-15% and expected gross margins by 3-18%, respectively. The results depend on the choice of adaptation measures and on the level of risk aversion and vary by region. In the semi-arid eastern parts of Austria, average dry matter crop yields are lower but gross margins are higher than in western Austria due to bio-physical and agronomic heterogeneities. An abolishment of decoupled farm payments and a threefold increase in agri-environmental premiums would reduce nitrogen inputs by 23-33%, but also crop yields and gross margins by 18-37%, on average. From a policy perspective, a twofold increase in agri-environmental premiums could effectively reduce the trade-offs between crop production and environmental impacts. (C) 2015 Elsevier Ltd. All rights reserved.

Abstract: As a result of anthropogenic activities, ozone is produced in the surface atmosphere, causing direct damage to plants and reducing crop yields. By combining a biophysical crop model with an economic supply model we were able to predict and quantify this effect at a fine spatial resolution. We applied our approach to the very varied French case and showed that ozone has significant productivity and land-use effects. A comparison of moderate and high ozone scenarios for 2030 shows that wheat production may decrease by more than 30% and barley production may increase by more than 14% as surface ozone concentration increases. These variations are due to the direct effect of ozone on yields as well as to modifications in land use caused by a shift toward more ozone-resistant crops: our study predicts a 16% increase in the barley-growing area and an equal decrease in the wheat-growing area. Moreover, mean agricultural gross margin losses can go as high as 2.5% depending on the ozone scenario, and can reach 7% in some particularly affected regions. A rise in ozone concentration was also associated with a reduction of agricultural greenhouse gas emissions of about 2%, as a result of decreased use of nitrogen fertilizers. One noteworthy result was that major impacts, including changes in land use, do not necessarily occur in ozone high concentration zones, and may strongly depend on farm systems and their adaptation capability. Our study suggests that policy makers should view ozone pollution as a major potential threat to agricultural yields. (C) 2012 Elsevier B.V. All rights reserved.