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: The current paper aims to determine regional impacts of climate change on Irish farms examining the variation in farm responses. A set of crop growth models were used to determine crop and grass yields under a baseline scenario and a future climate scenario. These crop and grass yields were used along with farm-level data taken from the Irish National Farm Survey in an optimizing farm-level (farm-level linear programming) model, which maximizes farm profits under limiting resources. A change in farm net margins under the climate change scenario compared to the baseline scenario was taken as a measure to determine the effect of climate change on farms. The growth models suggested a decrease in cereal crop yields (up to 9%) but substantial increase in yields of forage maize (up to 97%) and grass (up to 56%) in all regions. Farms in the border, midlands and south-east regions suffered, whereas farms in all other regions generally fared better under the climate change scenario used in the current study. The results suggest that there is a regional variability between farms in their responses to the climate change scenario. Although substituting concentrate feed with grass feeds is the main adaptation on all livestock farms, the extent of such substitution differs between farms in different regions. For example, large dairy farms in the south-east region adopted total substitution of concentrate feed while similar dairy farms in the south-west region opted to replace only 0.30 of concentrate feed. Farms in most of the regions benefitted from increasing stocking rate, except for sheep farms in the border and dairy farms in the south-east regions. The tillage farms in the mid-east region responded to the climate change scenario by shifting arable production to beef production on farms.