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: Two independently developed simulation models – the grassland-specific PaSim and the biome-generic Biome-BGC MuSo (BBGC MuSo) – linking climate, soil, vegetation and management to ecosystem biogeochemical cycles were compared in a simulation of carbon (C) and water fluxes. The results were assessed against eddy-covariance flux data from five observational grassland sites representing a range of conditions in Europe: Grillenburg in Germany, Laqueuille in France with both extensive and intensive management, Monte Bondone in Italy and Oensingen in Switzerland. Model comparison (after calibration) gave substantial agreement, the performances being marginal to acceptable for weekly-aggregated gross primary production and ecosystem respiration (R-2 similar to 0.66 – 0.91), weekly evapotranspiration (R-2 similar to 0.78 – 0.94), soil water content in the topsoil (R-2 similar to 0.1 -0.7) and soil temperature (R-2 similar to 0.88 – 0.96). The bias was limited to the range -13 to 9 g C m(-2) week(-1) for C fluxes (-11 to 8 g C m(-2) week(-1) in case of BBGC MuSo, and -13 to 9 g C m(-2) week(-1) in case of PaSim) and -4 to 6 mm week for water fluxes (with BBGC MuSo providing somewhat higher estimates than PaSim), but some higher relative root mean square errors indicate low accuracy for prediction, especially for net ecosystem exchange The sensitivity of simulated outputs to changes in atmospheric carbon dioxide concentration ([CO2]), temperature and precipitation indicate, with certain agreement between the two models, that C outcomes are dominated by [CO2] and temperature gradients, and are less due to precipitation. ET rates decrease with increasing [CO2] in PaSim (consistent with experimental knowledge), while lack of appropriate stomatal response could be a limit in BBGC MuSo responsiveness. Results of the study indicate that some of the errors might be related to the improper representation of soil water content and soil temperature. Improvement is needed in the model representations of soil processes (especially soil water balance) that strongly influence the biogeochemical cycles of managed and unmanaged grasslands. (C) 2015 Elsevier B.V. All rights reserved.