Abstract: Highlights • A framework to study climate and policy uncertainty in agriculture is presented. • Combining both sources of uncertainty has ambiguous effects on agriculture. • Uncertainty needs to be highlighted in modelling tools for policy analysis. Abstract Farmers are exposed to climate change and uncertainty about how that change will develop. As farm incomes, in Norway and elsewhere, greatly depend on government subsidies, the risk of a policy change constitutes an additional uncertainty source. Hence, climate and policy uncertainty could substantially impact agricultural production and farm income. However, these sources of uncertainty have, so far, rarely been combined in food production analyses. The aim of this study was to determine the effects of a combination of policy and climate uncertainty on agricultural production, land use, and social welfare in Norway. Output yield distributions of spring wheat and timothy, a major forage grass, from simulations with the weather-driven crop models, CSM-CERES-Wheat and, LINGRA, were processed in the a stochastic version Jordmod, a price-endogenous spatial economic sector model of the Norwegian agriculture. To account for potential effects of climate uncertainty within a given future greenhouse gas emission scenario on farm profitability, effects on conditions that represented the projected climate for 2050 under the emission scenario A1B from the 4th assessment report of the Intergovernmental Panel on Climate Change and four Global Climate Models (GCM) was investigated. The uncertainty about the level of payment rates at the time farmers make their management decisions was handled by varying the distribution of payment rates applied in the Jordmod model. These changes were based on the change in the overall level of agricultural support in the past. Three uncertainty scenarios were developed and tested: one with climate change uncertainty, another with payment rate uncertainty, and a third where both types of uncertainty were combined. The three scenarios were compared with results from a deterministic scenario where crop yields and payment rates were constant. Climate change resulted in on average 9% lower cereal production, unchanged grass production and more volatile crop yield as well as 4% higher farm incomes on average compared to the deterministic scenario. The scenario with a combination of climate change and policy uncertainty increased the mean farm income more than a scenario with only one source of uncertainty. On the other hand, land use and farm labour were negatively affected under these conditions compared to the deterministic case. Highlighting the potential influence of climate change and policy uncertainty on the performance of the farm sector our results underline the potential error in neglecting either of these two uncertainties in studies of agricultural production, land use and welfare.

Abstract: HERMES is a widely used agricultural system model; however, it has never been tested for simulating N loss to subsurface drainage. Here, we integrated a simple drain flbw component into HERMES. We then compared the predictions to four years of data (2002-2005) from central Iowa fields in corn-oybean with winter rye as a cover crop (CC) and without winter rye (NCC). We also compared the HERMES predictions to the more complex Root Zone Water Quality Model (RZWQM) predictions for the same dataset. The average annual observed and simulated N loss to drain flow were 43.8 and 44.4 kg N/ha (NCC) and 17.6 and 18.9 kg N/ha (CC). The slightly over predicted N loss for CC was because of over predicted nitrate concentration, which may be partly caused by slightly under predicted average annual rye shoot N (observed and simulated values were 47.8 and 46.0 kg N/ha). Also, recent research from the site suggests that the soil field capacity may be greater in CC while we used the same soil parameters for both treatments. A local sensitivity analysis suggests that increased field capacity affects HERMES simulations, which includes reduced drain flow nitrate concentrations, increased denitrification, and reduced drain flow volume. HERMES-simulated cumulative monthly drain flow and annual drain flow were reasonable compared to field data and HERMES performance was comparable to other published drainage model tests. Unlike the RZWQM simulations, however, the modified HERMES did riot accurately simulate the year to year variability in nitrate concentration difference between NCC and CC, possibly due in part to the lack of partial mixing and displacement of the soil solution. The results suggest that 1) the relatively simple model HERMES is a promising tool to estimate annual N loss to drain flow under corn-soybean rotations with winter rye as a cover crop and 2) soil field capacity is a critical parameter to investigate to more thoroughly understand and appropriately model denitrification and N losses to subsurface drainage. Published by Elsevier B.V.