Abstract: Highlights • A framework to study climate and policy uncertainty in agriculture is presented. • Combining both sources of uncertainty has ambiguous effects on agriculture. • Uncertainty needs to be highlighted in modelling tools for policy analysis. Abstract Farmers are exposed to climate change and uncertainty about how that change will develop. As farm incomes, in Norway and elsewhere, greatly depend on government subsidies, the risk of a policy change constitutes an additional uncertainty source. Hence, climate and policy uncertainty could substantially impact agricultural production and farm income. However, these sources of uncertainty have, so far, rarely been combined in food production analyses. The aim of this study was to determine the effects of a combination of policy and climate uncertainty on agricultural production, land use, and social welfare in Norway. Output yield distributions of spring wheat and timothy, a major forage grass, from simulations with the weather-driven crop models, CSM-CERES-Wheat and, LINGRA, were processed in the a stochastic version Jordmod, a price-endogenous spatial economic sector model of the Norwegian agriculture. To account for potential effects of climate uncertainty within a given future greenhouse gas emission scenario on farm profitability, effects on conditions that represented the projected climate for 2050 under the emission scenario A1B from the 4th assessment report of the Intergovernmental Panel on Climate Change and four Global Climate Models (GCM) was investigated. The uncertainty about the level of payment rates at the time farmers make their management decisions was handled by varying the distribution of payment rates applied in the Jordmod model. These changes were based on the change in the overall level of agricultural support in the past. Three uncertainty scenarios were developed and tested: one with climate change uncertainty, another with payment rate uncertainty, and a third where both types of uncertainty were combined. The three scenarios were compared with results from a deterministic scenario where crop yields and payment rates were constant. Climate change resulted in on average 9% lower cereal production, unchanged grass production and more volatile crop yield as well as 4% higher farm incomes on average compared to the deterministic scenario. The scenario with a combination of climate change and policy uncertainty increased the mean farm income more than a scenario with only one source of uncertainty. On the other hand, land use and farm labour were negatively affected under these conditions compared to the deterministic case. Highlighting the potential influence of climate change and policy uncertainty on the performance of the farm sector our results underline the potential error in neglecting either of these two uncertainties in studies of agricultural production, land use and welfare.

Abstract: The effects of soil variability on regional crop yield under projected climate change are largely unknown. In Southeastern Norway, increased temperature and precipitation are projected for the mid-21st century. Crop simulation models in combination with scaling techniques can be used to determine the regional pattern of crop yield. In the present paper, the CSM-CROPSIM-CERES-Wheat model was applied to simulate regional spring wheat yield for Akershus and Østfold counties in Southeastern Norway. Prior to the simulations, parameters in the CSM-CROPSIM-CERES-Wheat model were calibrated for the spring wheat cvars Zebra, Demonstrant and Bjarne, using cultivar trial data from Southeastern Norway and site-specific weather and soil information. Weather input data for regional yield simulations represented the climate in 1961–1990 and projections of the climate in 2046–2065. The latter were based on four Global Climate Models and greenhouse gas emission scenario A1B in the IPCC 4th Assessment Report. Data on regional soil particle size distribution, water-holding characteristics and organic matter data were obtained from a database. To determine the simulated grain yield sensitivity to soil input, the number of soil profiles used to describe the soilscape in the region varied from 76 to 16, 5 and 1. The soils in the different descriptions were selected by arranging them into groups according to similarities in physical characteristics and taking the soil in each group occupying the largest area in the region to represent other soils in that group. The simulated grain yields were higher under all four projected future climate scenarios than the corresponding average yields in the baseline conditions. On average across the region, there were mostly non-significant differences in grain yield between the soil extrapolations for all cultivars and climate projections. However, for sub-regions grain yield varied by up to 20% between soil extrapolations. These results indicate how projected climate change could affect spring wheat yield given the assumed simulated conditions for a region with similar climate and soil conditions to many other cereal production regions in Northern Europe. The results also provide useful information about how soil input data could be handled in regional crop yield determinations under these conditions.