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.

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.

Abstract: Sunflower is one of the major oilseeds produced in Tanzania, but due to insufficient domestic production more than half of the country’s demand is imported. The improvement of the sunflower food value chain (FVC) understanding is important to ensure an increase in the production, availability, and quality of edible oil. In order to analyse causes and propose solutions to increase the production of sunflower oil, a conceptual framework that proposes the combined use of different models to provide insights about the sunflower FVC was developed. This research focus on the identification of agricultural models that can provide a better understanding of the sunflower FVC in Tanzania, especially within the context of food security improvement. A FVC scheme was designed considering the main steps of sunflower production. Thereafter, relevant models were selected and placed along each step of the FVC. As result, the sunflower FVC model in Tanzania is organized in five steps, namely (1) natural resources; (2) crop production; (3) oil processing; (4) trade; and (5) consumption. Step 1 uses environmental indicators to analyse soil parameters on soil-water models (SWAT, LPJmL, APSIM or CroSyst), with outputs providing data for step 2 of the FVC. In the production step, data from step 1, together with other inputs, is used to run crop models (DSSAT, HERMES, MONICA, STICS, EPIC or AquaCrop) that analyse the impact on sunflower yields. Thereafter, outputs from crop models serve as input for bio-economic farm models (FSSIM or MODAM) to estimate production costs and farm income by optimizing resource allocation planning for step 2. In addition, outputs from crop models are used as inputs for macro-economic models (GTAP, MAGNET or MagPie) by adjusting supply functions and environmental impacts within steps 3, 4, and 5. These models simulate supply and demand, including the processing of products to determine prices and trade volumes at market equilibrium. In turn, these data is used by bio-economic farm models to assess sunflower returns for different farm types and agro-environmental conditions. Due to the large variety of models, it is possible to assess significant parts of the FVC, reducing the need to make assumptions, while improving the understanding of the FVC.