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Özkan, Ş., Farquharson, R. J., Hill, J., & Malcolm, B. (2015). A stochastic analysis of the impact of input parameters on profit of Australian pasture-based dairy farms under variable carbon price scenarios. Environmental Science & Policy, 48, 163–171.
Abstract: The imposition of a carbon tax in the economy will have indirect impacts on dairy farmers in Australia. Although there is a great deal of information available regarding mitigation strategies both in Australia and internationally, there seems to be a lack of research investigating the variable prices of carbon-based emissions on dairy farm operating profits in Australia. In this study, a stochastic analysis comparing the uncertainty in income in response to different prices on carbon-based emissions was conducted. The impact of variability in pasture consumption and variable prices of concentrates and hay on farm profitability was also investigated. The two different feeding systems examined were a ryegrass pasture-based system (RM) and a complementary forage-based system (CF). Imposing a carbon price ($20-$60) and not changing the systems reduced the farm operating profits by 28.4% and 25.6% in the RM and CF systems, respectively compared to a scenario where no carbon price was imposed. Different farming businesses will respond to variability in the rapidly changing operating environment such as fluctuations in pasture availability, price of purchased feeds and price of milk or carbon emissions differently. Further, in case there is a carbon price imposed for GHG emissions emanated from dairy farming systems, changing from pasture-based to more complex feeding systems incorporating home-grown double crops may reduce the reductions in farm operating profits. There is opportunity for future studies to focus on the impacts of different mitigation strategies and policy applications on farm operating profits. (C) 2015 Elsevier Ltd. All rights reserved.
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Nendel, C., Kersebaum, K. C., Mirschel, W., & Wenkel, K. O. (2014). Testing farm management options as climate change adaptation strategies using the MONICA model. European Journal of Agronomy, 52, 47–56.
Abstract: Adaptation of agriculture to climate change will be driven at the farm level in first place. The MONICA model was employed in four different modelling exercises for demonstration and testing different management options for farmers in Germany to adjust their production system. 30-Year simulations were run for the periods 1996-2025 and 2056-2085 using future climate data generated by a statistical method on the basis of measured data from 1961 to 2000 and the A1B scenario of the IPCC (2007a). Crop rotation designs that are expected to become possible in the future due to a prolonged vegetation period and at the same time shortened cereal growth period were tested for their likely success. The model suggested that a spring barley succeeding a winter barley may be successfully grown in the second half of the century, allowing for a larger yields by intensification of the cropping cycle. Growing a winter wheat after a sugar beet may lead to future problems as late sowing makes the winter wheat grow into periods prone to drought. Irrigation is projected to considerably improve and stabilise the yields of late cereals and of shallow rooting crops (maize and pea) on sandy soils in the continental climate part of Germany, but not in the humid West. Nitrogen fertiliser management needs to be adjusted to increasing or decreasing yield expectations and for decreasing soil moisture. On soils containing sufficient amounts of Moisture and soil organic matter, enhanced mineralisation is expected to compensate for a greater N demand. (C) 2012 Elsevier B.V. All rights reserved.
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Nelson, G. C., Valin, H., Sands, R. D., Havlík, P., Ahammad, H., Deryng, D., et al. (2014). Climate change effects on agriculture: economic responses to biophysical shocks. Proc. Natl. Acad. Sci. U. S. A., 111(9), 3274–3279.
Abstract: Agricultural production is sensitive to weather and thus directly affected by climate change. Plausible estimates of these climate change impacts require combined use of climate, crop, and economic models. Results from previous studies vary substantially due to differences in models, scenarios, and data. This paper is part of a collective effort to systematically integrate these three types of models. We focus on the economic component of the assessment, investigating how nine global economic models of agriculture represent endogenous responses to seven standardized climate change scenarios produced by two climate and five crop models. These responses include adjustments in yields, area, consumption, and international trade. We apply biophysical shocks derived from the Intergovernmental Panel on Climate Change’s representative concentration pathway with end-of-century radiative forcing of 8.5 W/m(2). The mean biophysical yield effect with no incremental CO2 fertilization is a 17% reduction globally by 2050 relative to a scenario with unchanging climate. Endogenous economic responses reduce yield loss to 11%, increase area of major crops by 11%, and reduce consumption by 3%. Agricultural production, cropland area, trade, and prices show the greatest degree of variability in response to climate change, and consumption the lowest. The sources of these differences include model structure and specification; in particular, model assumptions about ease of land use conversion, intensification, and trade. This study identifies where models disagree on the relative responses to climate shocks and highlights research activities needed to improve the representation of agricultural adaptation responses to climate change.
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Müller, C., & Robertson, R. D. (2014). Projecting future crop productivity for global economic modeling. Agric. Econ., 45(1), 37–50.
Abstract: Assessments of climate change impacts on agricultural markets and land-use patterns rely on quantification of climate change impacts on the spatial patterns of land productivity. We supply a set of climate impact scenarios on agricultural land productivity derived from two climate models and two biophysical crop growth models to account for some of the uncertainty inherent in climate and impact models. Aggregation in space and time leads to information losses that can determine climate change impacts on agricultural markets and land-use patterns because often aggregation is across steep gradients from low to high impacts or from increases to decreases. The four climate change impact scenarios supplied here were designed to represent the most significant impacts (high emission scenario only, assumed ineffectiveness of carbon dioxide fertilization on agricultural yields, no adjustments in management) but are consistent with the assumption that changes in agricultural practices are covered in the economic models. Globally, production of individual crops decrease by 10-38% under these climate change scenarios, with large uncertainties in spatial patterns that are determined by both the uncertainty in climate projections and the choice of impact model. This uncertainty in climate impact on crop productivity needs to be considered by economic assessments of climate change.
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Müller, C., Elliott, J., & Levermann, A. (2014). Food security: Fertilizing hidden hunger. Nat. Clim. Change, 4(7), 540–541.
Abstract: Atmospheric CO2 fertilization may go some way to compensating the negative impact of climatic changes on crop yields, but it comes at the expense of a deterioration of the current nutritional value of food.
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