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Barnes, A., Shrestha, S., Thomson, S., Toma, L., Mathews, K., & Sutherland, L. A. (2014). Comparing visions for CAP reforms post 2015: Farmer intentions and farm bio-economic modelling (Vol. 3).
Abstract: This paper illustrates the impacts of two of the potential CAP reform post 2015 scenarios using an optimising farm level model and compares results with farmers’ perception about the policy changes, captured in a farmer intentions survey. The model results suggest that beef farms suffer a loss in farm net margins under fully decoupled (up to -21%) as well as under partially decoupled scenario (up to -19%) compared to current historical single farm payments. The model also shows that farm respond by reducing the number of beef animals on farm by up to 5%. However, under a partial decoupled scenario, beef farms increase calf numbers by 15% to benefit from coupled calf payment. A survey of 1,400 beef producers with respect to their intentions toward 2020 was conducted in the Summer of 2013. A set of hypothetical payment scenarios was used to test self-reported response to a number of scenarios related to expanding and extensifying. These were compared with the modelling results and found a range of responses which could, we argue, be used for future calibration and ‘sense-checking’ of results within future modelling strategies. No Label
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Shrestha, S. (2015). Comparing the cost effectiveness of GHG mitigation options on different Scottish dairy farm groups (Vol. 5).
Abstract: Greenhouse gas (GHG) mitigation is one of the main challenges faced by agriculture sector especially under an increasing demand for food. Production expansion needs to be accompanied by reductions in the GHG emission intensity of agricultural products. However, any uptakes of mitigation options by the farmers depend on the cost effectiveness of adopting such options as well as the farm characteristics. A highly effective mitigation option might not be practical for a farmer if the associated costs are high. A list of mitigation option implemented on different farm types with their cost effectiveness on farms would therefore be very useful for farmers as well as policy makers to make a decision. This paper aims to explore the use of three GHG mitigation options on different dairy farm groups in Scotland and determine the cost effectiveness of each of the options in those farm groups. The mitigation options considered for this paper are; i) use of sexed semen, ii) installing and using anaerobic digester and iii) increasing the share of concentrate diet. Farm level data from the Scottish Farm Accountancy dataset (FAS) was used and a cluster analysis was carried on to identify different dairy farm groups. The potential reduction of GHG emission per farm, including emissions arising from inputs used on the farm, under each of the option is then calculated using the GLEAM life cycle assessment model. An optimising farm level model, ScotFarm, was used on each of the farm groups to determine the optimum farm net margins under a baseline situation (with no options implemented) and three mitigation scenarios. The cost effectiveness of all three mitigation options are then determined based on reduction in GHG emission per farm and change in farm net margins under those options. Initial results for the sexed semen scenario suggest that this option can be cost effective for both efficient dairy farms (-£6.26/tCO2e) and medium-sized dairy farms (-£12.56/tCO2e). No Label
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Shrestha, S., Hennessy, T., Abdalla, M., Forristal, D., & Jones, M. J. (2014). Determining short term responses of Irish dairy farms under climate change. German Journal of Agricultural Economics, 63(3), 143–155.
Abstract: This study aimed to determine short term farm responses of Irish dairy farms under climate change. The Irish National Farm Survey data and Irish weather data were the main datasets used in this study. A set of simulation models were used to determine grass yields and field time under a baseline scenario and a future climate scenario. An optimising farm level model which maximises farm net income under limiting farm resources was then run under these scenarios. Changes in farm net incomes under the climate change scenario compared to the baseline scenario were taken as a measure to determine the effect of climate change on farms. Any changes in farm activities under the climate run compared to the baseline run were considered as farm’s responses to maximise farm profits. The results showed that there was a substantial increase in yields of grass (49% to 56%) in all regions. The impact of climate change on farms was different based on the regions. Dairy farms in the Border, Midlands and South East regions suffered whereas dairy farms in other regions generally fared better under the climate change scenario. For a majority of farms, a substitution of concentrate feed with grass based feeds and increasing stocking rate were identified as the most common farm responses. However, farms replaced concentrate feed at varying degree. Dairy farms in the Mid East showed a move towards beef production system where medium dairy farms in the South East regions shifted entire tillage land to grass land. Farms in the South East region also kept animals on grass longer under the climate change scenario compared to the baseline scenario.
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Eory, V., MacLeod, M., Shrestha, S., & Roberts, D. (2014). Linking an economic and a life-cycle analysis biophysical model to support agricultural greenhouse gas mitigation policy. German Journal of Agricultural Economics, 63, 133–142.
Abstract: Greenhouse gas (GHG) mitigation is one of the main challenges facing agriculture, exacerbated by the increasing demand for food, in particular for livestock products. Production expansion needs to be accompanied by reductions in the GHG emission intensity of agricultural products, if significant increases in emissions are to be avoided. Suggested farm management changes often have systemic effects on farm, therefore their investigation requires a whole farm approach. At the same time, changes in GHG emissions arising offfarm in food supply chains (pre- or post-farm) can also occur as a consequence of these management changes. A modelling framework that quantifies the whole-farm, life-cycle effects of GHG mitigation measures on emissions and farm finances has been developed. It is demonstrated via a case study of sexed semen on Scottish dairy farms. The results show that using sexed semen on dairy farms might be a costeffective way to reduce emissions from cattle production by increasing the amount of lower emission intensity ‘dairy beef’ produced. It is concluded that a modelling framework combining a GHG life cycle analysis model and an economic model is a useful tool to help designing targeted agri-environmental policies at regional and national levels. It has the flexibility to model a wide variety of farm types, locations and management changes, and the LCA-approach adopted helps to ensure that GHG emission leakage does not occur in the supply chain.
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Vosough Ahmadi, B., Shrestha, S., Thomson, S. G., Barnes, A. P., & Stott, A. W. (2015). Impacts of greening measures and flat rate regional payments of the Common Agricultural Policy on Scottish beef and sheep farms. J. Agric. Sci., 153(04), 676–688.
Abstract: The latest Common Agricultural Policy (CAP) reforms could bring substantial changes to Scottish farming communities. Two major components of this reform package, an introduction of environmental measures into the Pillar 1 payments and a move away from historical farm payments towards regionalized area payments, would have a significant effect on altering existing support structures for Scottish farmers, as it would for similar farm types elsewhere in Europe where historic payments are used. An optimizing farm-level model was developed to explore how Scottish beef and sheep farms might be affected by the greening and flat rate payments under the current CAP reforms. Nine different types of beef and sheep farms were identified and detailed biophysical and financial farm-level data for these farm types were used to parameterize the model. Results showed that the greening measures of the CAP did not have much impact on net margins of most of the beef and sheep farm businesses, except for ‘Beef Finisher’ farm types where the net margins decreased by 3%. However, all farm types were better off adopting the greening measures than not qualifying for the greening payments through non-compliance with the measures. The move to regionalized farm payments increased the negative financial impact of greening on most of the farms but it was still substantially lower than the financial sacrifice of not adopting greening measures. Results of maximizing farm net margin, under a hypothetical assumption of excluding farm payments, showed that in most of the mixed (sheep and cattle) and beef suckler cattle farms the optimum stock numbers predicted by the model were lower than actual figures on farm. When the regionalized support payments were allocated to each farm, the proportion of the mixed farms that would increase their stock numbers increased whereas this proportion decreased for beef suckler farms and no impact was predicted in sheep farms. Also under the regionalized support payments, improvements in profitability were found in mixed farms and sheep farms. Some of the specialized beef suckler farms also returned a profit when CAP support was added.
Keywords: CAP reform; models; level; water; Agriculture
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