Abstract: Climate and socio-economic change will affect the land use and the economic viability of Dutch dairy farms. Explorations of future scenarios, which include different drivers and impacts, are needed to perform ex-ante policy assessment. This study uses a bio-economic farm model to assess impacts of climate and socio-economic change on dairy farms in a sandy area in the Netherlands. Farm data from the Farm Accountancy Data Network provided information on the current production levels and available farm resources. First, the farm plans of individual farms were optimized in the current situation to benchmark farms and assess the current scope for improvement. Secondly, simulations for two scenarios were included: a Global Economy with 2 °C global temperature rise (GE/W+) and a Regional Community with 1 °C global temperature rise (RC/G). The impacts of climate change, extreme events, juridical change (including abolishment of milk quota), technological change and price changes were evaluated in separate model runs within the predefined scenarios. We found that farms can increase profit both by intensification and land expansion; the latter especially for medium sized farms (less than 70 cows). Climate change including the effect of increased occurrence of extreme events may negatively affect farm gross margin in the GE/W+ scenario. Lower gross margins are compensated for by the effects of technology and price changes. In contrast with the GE/W+ scenario, climate change has positive impacts on farm profit in RC/G, but less favourable farm input-output price ratios have a negative effect. Technological change is needed to compensate for revenue losses due to higher input prices. In both GE/W+ and RC/G scenarios, dairy farms increase production and the use of artificial fertilizer. Medium sized farms have more options to increase profit than the large farms: they benefit more from the abolishment of the milk quota and better adapt to negative and positive impacts of climate change. While the exact impact of different drivers will always remain uncertain, this study showed that changes in prices, technology and markets have a relatively larger impact than climate change, even when extreme events are taken into account. By using whole farm plans as activities that can be selected, the model is grounded in observations, and it was shown that half of the farms are gross margin maximizers as assumed in the model. The model therefore indicates ‘what could happen if’, and gives insights in drivers and impacts of dairy farming in the region.

Abstract: Agriculture is unique among economic sectors in the nature of impacts from climate change. The production activity that transforms inputs into agricultural outputs involves direct use of weather inputs (temperature, solar radiation available to the plant, and precipitation). Previous studies of the impacts of climate change on agriculture have reported substantial differences in outcomes such as prices, production, and trade arising from differences in model inputs and model specification. This article presents climate change results and underlying determinants from a model comparison exercise with 10 of the leading global economic models that include significant representation of agriculture. By harmonizing key drivers that include climate change effects, differences in model outcomes were reduced. The particular choice of climate change drivers for this comparison activity results in large and negative productivity effects. All models respond with higher prices. Producer behavior differs by model with some emphasizing area response and others yield response. Demand response is least important. The differences reflect both differences in model specification and perspectives on the future. The results from this study highlight the need to more fully compare the deep model parameters, to generate a call for a combination of econometric and validation studies to narrow the degree of uncertainty and variability in these parameters and to move to Monte Carlo type simulations to better map the contours of economic uncertainty.

Abstract: Moving towards a more sustainable future requires concerted actions, particularly in the context of global climate change. Integrated assessments of agricultural systems (IAAS) are considered valuable tools to provide sound information for policy and decision-making. IAAS use storylines to define socio-economic and environmental framework assumptions. While a set of qualitative global storylines, known as the Shared Socio-economic Pathways (SSPs), is available to inform integrated assessments at large scales, their spatial resolution and scope is insufficient for regional studies in agriculture. We present a protocol to operationalize the development of Shared Socio-economic Pathways for European agriculture – Eur-Agri-SSPs- to support IAAS. The proposed design of the storyline development process is based on six quality criteria: plausibility, vertical and horizontal consistency, salience, legitimacy, richness and creativity. Trade-offs between these criteria may occur. The process is science-driven and iterative to enhance plausibility and horizontal consistency. A nested approach is suggested to link storylines across scales while maintaining vertical consistency. Plausibility, legitimacy, salience, richness and creativity shall be stimulated in a participatory and interdisciplinary storyline development process. The quality criteria and process design requirements are combined in the protocol to increase conceptual and methodological transparency. The protocol specifies nine working steps. For each step, suitable methods are proposed and the intended level and format of stakeholder engagement are discussed. A key methodological challenge is to link global SSPs with regional perspectives provided by the stakeholders, while maintaining vertical consistency and stakeholder buy-in. We conclude that the protocol facilitates systematic development and evaluation of storylines, which can be transferred to other regions, sectors and scales and supports intercomparisons of IAAS.