Abstract: This study assesses how climate impacts on agriculture may change the evolution of the agricultural and energy systems in meeting the end-of-century radiative forcing targets of the representative concentration pathways (RCPs). We build on the recently completed Inter-Sectoral Impact Model Intercomparison Project (ISI-MIP) exercise that has produced global gridded estimates of future crop yields for major agricultural crops using climate model projections of the RCPs from the Coupled Model Intercomparison Project Phase 5 (CMIP5). For this study we use the bias-corrected outputs of the HadGEM2-ES climate model as inputs to the LPJmL crop growth model, and the outputs of LPJmL to modify inputs to the GCAM integrated assessment model. Our results indicate that agricultural climate impacts generally lead to an increase in global cropland, as compared with corresponding emissions scenarios that do not consider climate impacts on agricultural productivity. This is driven mostly by negative impacts on wheat, rice, other grains, and oil crops. Still, including agricultural climate impacts does not significantly increase the costs or change the technological strategies of global, whole-system emissions mitigation. In fact, to meet the most aggressive climate change mitigation target (2.6W/m(2) in 2100), the net mitigation costs are slightly lower when agricultural climate impacts are considered. Key contributing factors to these results are (a) low levels of climate change in the low-forcing scenarios, (b) adaptation to climate impacts simulated in GCAM through inter-regional shifting in the production of agricultural goods, and (c) positive average climate impacts on bioenergy crop yields.

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.

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.