Banse, M., Brouwer, F., Palatnik, R. R., & Sinabell, F. (2014). The Economics of European Agriculture under Conditions of Climate Change (Editorial). German Journal of Agricultural Economics, 63(3), 131–132.
Abstract: This Special Issue on “The Economics of European Agriculture under Conditions of Climate Change” brings together a selection of papers that contribute to the understanding of recent developments related to agriculture and climate change in four European coun- tries. The focus of the Special Issue is on quantitative modeling and empirical analyses. The papers presented here not only cover the heterogeneity of agriculture in Europe with case studies from the Mediterranean (Italy), central (Austria) and north-western Europe (Ireland and Scotland) but also give insights into the diversity of quantitative modeling approaches in agriculture.
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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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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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Schönhart, M., Mitter, H., Schmid, E., Heinrich, G., & Gobiet, A. (2014). Integrated analysis of climate change impacts and adaptation measures in Austrian agriculture. German Journal of Agricultural Economics, 63(3), 156–176.
Abstract: An integrated modelling framework (IMF) has been developed and applied to analyse climate change impacts and the effectiveness of adaptation measures in Austrian agriculture. The IMF couples the crop rotation model CropRota, the bio-physical process model EPIC and the bottom-up economic land use model PASMA at regional level (NUTS-3) considering agri-environmental indicators. Four contrasting regional climate model (RCM) simulations represent climate change until 2050. The RCM simulations are applied to a baseline and three adaptation and policy scenarios. Climate change increases crop productivity on national average in the IMF. Changes in average gross margins at national level range from 0% to + 5% between the baseline and the three adaptation and policy scenarios. The impacts at NUTS-3 level range from -5% to + 7% between the baseline and the three adaptation and policy scenarios. Adaptation measures such as planting of winter cover crops, reduced tillage and irrigation are effective in reducing yield losses, increasing revenues, or in improving environmental states under climate change. Future research should account for extreme weather events in order to analyse whether average productivity gains at the aggregated level suffice to cover costs from expected higher climate variability.
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Dono, G., Raffaele, C., Luca, G., & Roggero, P. P. (2014). Income Impacts of Climate Change: Irrigated Farming in the Mediterranean and Expected Changes in Probability of Favorable and Adverse Weather Conditions. German Journal of Agricultural Economics, 63(3), 177–186.
Abstract: EU rural development policy (RDP) regulation 1305/2013 aims to protect farmers’ incomes from ongoing change of climate variability (CCV), and the increase in frequency of adverse climatic events. An income stabilization tool (IST) is provided to compensate drastic drops in income, including those caused by climatic events. The present study examines some aspect of its application focussing on Mediterranean irrigation area where frequent water shortages may generate significant income reductions in the current climate conditions, and may be further exacerbated by climate change. This enhanced loss of income in the future would occur due to a change in climate variability. This change would appreciably reduce the probability of weather conditions that are favourable for irrigation, but would not significantly increase either the probability of unfavourable weather conditions or the magnitude of their impact. As the IST and other insurance tools that protect against adversity and catastrophic events are only activated under extreme conditions, farmers may not consider them to be suitable in dealing with the new climate regime. This would leave a portion of the financial resources allocated by the RDP unused, resulting in less support for climate change adaptation.
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