Abstract: Agricultural practice is facing multiple challenges under volatile commodity markets, inevitable climate change, mounting pest pressure and various other environment-related constraints. The objective of this research is to present a dynamic optimization model of crop rotations and farm management and show its suitability for economic analysis over a 30 year time period. In this model, we include management practices such as fertilization, fungicide treatment and liming, and apply it in a region in Southwestern Finland. Results show that (i) growing pest pressure favours the cultivation of wheat-oats and wheat-oilseeds combinations, while (ii) market prices largely determine the crops in the rotation plan and the specific management practices adopted. The flexibility of our model can also be utilized in evaluating the value of other management options such as new cultivars under different projections of future climate and market conditions.

Abstract: The Australian dairy industry relies primarily on pasture for its feed supply. However, the variability in climate affects plant growth, leading to uncertainty in dryland pasture supply. This paper models the impact of climate variability on pasture production and examines the potential of two pasture-based dairy feeding systems: (1) to experience winter deficits; (2) to carry forward the conserved pasture surpluses as silage for future use; and (3) to conserve pasture surpluses as hay. The two dairy feeding systems examined were a traditional perennial ryegrass-based feeding system (ryegrass max. – RM) and a system that incorporated double cropping into the perennial ryegrass pasture base (complementary forage – CF). The conditional probability of the RM and CF systems to generate pasture deficits in winter were 94% and 96%, respectively. Both systems could carry forward the surplus silage into the following lactation almost once in every 4-5 years with the RM system performing slightly better than the CF system. The proportions of the grain-based concentrates fed in the two systems were 25% and 27% for the RM and CF systems, respectively. This study suggests that double-cropping systems have the potential to provide high-quality feed to support the feed gaps when pasture is not available due to increased variability in climatic conditions.

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.