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Lotze-Campen, H., von Witzke, H., Noleppa, S., & Schwarz, G. (2015). Science for food, climate protection and welfare: An economic analysis of plant breeding research in Germany. Agric. Syst., 136, 79–84.
Abstract: Highlights • We analyze the economic effects of plant breeding research in Germany. • Effects of reduced CO2 emissions due to productivity increases are being quantified. • Expansion of global agricultural area has been reduced by 1–1.5 million ha. • CO2 emissions have been reduced by 160–235 million tons. • German plant breeding research has an economic value of 10.8–15.6 billion EUR. Abstract We analyze the economic effects of plant breeding research in Germany. In addition to market effects, for the first time also effects of reduced CO2 emissions due to productivity increases are being quantified. The analysis shows that investments in German plant breeding research in the period 1991–2010 have reduced the global expansion of agricultural area by 1–1.5 million hectares. This has led to reduced CO2 emissions of 160–235 million tons. The economic value generated by plant breeding research, through increased production and reduced greenhouse gas emissions, is estimated at 10.8–15.6 billion EUR in the same period. This can be translated into a social rate of return on research investment in the range of 40–80% per year. Projections for the period 2011–2030 generate a return rate in the range of 65–140% per year. Investments into plant breeding research in Germany are highly profitable from a societal point of view. At the same time, our results show significant under-investments in agricultural research in Germany. These results provide a good justification for policy-makers to reverse funding cuts for public agricultural research over the last decades and to improve institutional conditions for private research, e.g. through better protection of intellectual property rights.
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Bojar, W., Knopik, L., Żarski, J., & Kuśmierek-Tomaszewska, R. (2016). Integrated assessment of crop productivity based on the food supply forecasting. Agricultural Economics – Czech, 61(11), 502–510.
Abstract: Climate change scenarios suggest that long periods without rainfall will occur in the future often causing instability of the agricultural products market. The aim of our research was to build a model describing the amount of precipitation and droughts for forecasting crop yields in the future. In this study, we analysed a non-standard mixture of gamma and one point distributions as the model of rainfall. On the basis of the rainfall data, one can estimate parameters of the distribution. Parameter estimators were constructed using a method of maximum likelihood. The obtained rainfall data allow confirming the hypothesis of the adequacy of the proposed rainfall models. Long series of droughts allow one to determine the probabilities of adverse phenomena in agriculture. Based on the model, yields of barley in the years 2030 and 2050 were forecasted which can be used for the assessment of other crops productivity. The results obtained with this approach can be used to predict decreases in agricultural production caused by prospective rainfall shortages. This will enable decision makers to shape effective agricultural policies in order to learn how to balance the food supplies and demands through an appropriate management of stored raw food materials and import/export policies.
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Lehtonen, H. (2015). Evaluating adaptation and the production development of Finnish agriculture in climate and global change. Agricultural and Food Science, 24(3), 219–234.
Abstract: Agricultural product prices and policies influence the development of crop yields under climate change through farm level management decisions. On this basis, five main scenarios were specified for agricultural commodity prices and crop yields. An economic agricultural sector model was used in order to assess the impacts of the scenarios on production, land use and farm income in Finland. The results suggest that falling crop yields, if realized due to low prices and restrictive policies, will result in decreasing crop and livestock production and increasing nutrient surplus. Slowly increasing crop yields could stabilise production and increase farm income. Significantly higher crop prices and yields are required, however, for any marked increase in production in Finland. Cereals production would increase relatively more than livestock production, if there were high prices for agricultural products. This is explained by abundant land resources, a high opportunity cost of labour and policies maintaining current dairy and beef production.
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