Abstract: An increasing demand for agricultural goods affects the pressure on global water resources over the coming decades. In order to quantify these effects, we have developed a new agroeconomic water scarcity indicator, considering explicitly economic processes in the agricultural system. The indicator is based on the water shadow price generated by an economic land use model linked to a global vegetation-hydrology model. Irrigation efficiency is implemented as a dynamic input depending on the level of economic development. We are able to simulate the heterogeneous distribution of water supply and agricultural water demand for irrigation through the spatially explicit representation of agricultural production. This allows in identifying regional hot spots of blue water scarcity and explicit shadow prices for water. We generate scenarios based on moderate policies regarding future trade liberalization and the control of livestock-based consumption, dependent on different population and gross domestic product (GDP) projections. Results indicate increased water scarcity in the future, especially in South Asia, the Middle East, and north Africa. In general, water shadow prices decrease with increasing liberalization, foremost in South Asia, Southeast Asia, and the Middle East. Policies to reduce livestock consumption in developed countries not only lower the domestic pressure on water but also alleviate water scarcity to a large extent in developing countries. It is shown that one of the two policy options would be insufficient for most regions to retain water scarcity in 2045 on levels comparable to 2005.

Abstract: In the arable farming region Flevoland in The Netherlands climate change, including extreme events and pests and diseases, will likely pose risks to a variety of crops including high value crops such as seed potato, ware potato and seed onion. A well designed adaptation strategy at the farm level can reduce risks for farmers in Flevoland. Currently, most of the impact assessments rely heavily on (modelling) techniques that cannot take into account extreme events and pests and diseases and cannot address all crops, and are thus not suited as input for a comprehensive adaptation strategy at the farm level. To identify major climate risks and impacts and develop an adaptation measure portfolio for the most relevant risks we complemented crop growth modelling with a semi-quantitative and participatory approach, the Agro Climatic Calendar (ACC), A cost-benefit analysis and stakeholder workshops were used to identify robust adaptation measures and design an adaptation strategy for contrasting scenarios in 2050. For Flevoland, potential yields of main crops were projected to increase, but five main climate risks were identified, and these are likely to offset the positive impacts. Optimized adaptation strategies differ per scenario (frequency of occurrence of climate risks) and per farm (difference in economic loss). When impacts are high (in the +2 degrees C and A1 SRES scenario) drip irrigation was identified as the best adaptation measure against the main climate risk heat wave that causes second-growth in seed and ware potato. When impacts are smaller (the +1 degrees C and B2 SRES scenario), other options including no adaptation are more cost-effective. Our study shows that with relatively simple techniques such as the ACC combined with a stakeholder process, adaptation strategies can be designed for whole farming systems. Important benefits of this approach compared to modelling techniques are that all crops can be included, all climate factors can be addressed, and a large range of adaptation measures can be explored. This enhances that the identified adaptation strategies are recognizable and relevant for stakeholders. (C) 2013 Elsevier B.V. All rights reserved.

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.