Abstract: The Australian dairy industry relies primarily on pasture for its feed supply. However, the variability in climate affects plant growth, leading to uncertainty in dryland pasture supply. This paper models the impact of climate variability on pasture production and examines the potential of two pasture-based dairy feeding systems: (1) to experience winter deficits; (2) to carry forward the conserved pasture surpluses as silage for future use; and (3) to conserve pasture surpluses as hay. The two dairy feeding systems examined were a traditional perennial ryegrass-based feeding system (ryegrass max. – RM) and a system that incorporated double cropping into the perennial ryegrass pasture base (complementary forage – CF). The conditional probability of the RM and CF systems to generate pasture deficits in winter were 94% and 96%, respectively. Both systems could carry forward the surplus silage into the following lactation almost once in every 4-5 years with the RM system performing slightly better than the CF system. The proportions of the grain-based concentrates fed in the two systems were 25% and 27% for the RM and CF systems, respectively. This study suggests that double-cropping systems have the potential to provide high-quality feed to support the feed gaps when pasture is not available due to increased variability in climatic conditions.

Abstract: This paper builds a benchmark framework to study optimal land use, encompassing land use activities and environmental degradation. We focus on the spatial externalities of land use as drivers of spatial patterns: land is immobile by nature, but local actions affect the whole space since pollution flows across locations resulting in both local and global damages. We prove that the decision maker problem has a solution, and characterize the corresponding social optimum trajectories by means of the Pontryagin conditions. We also show that the existence and uniqueness of time-invariant solutions are not in general guaranteed. Finally, a global dynamic algorithm is proposed in order to illustrate the spatial-dynamic richness of the model. We find that our simple set-up already reproduces a great variety of spatial patterns related to the interaction between land use activities and the environment. In particular, abatement technology turns out to play a central role as pollution stabilizer, allowing the economy to reach a time-invariant equilibrium that can be spatially heterogeneous. (C) 2014 Elsevier B.V. All rights reserved.

Abstract: Future farming systems are challenged to adapt to the changing socio-economic and bio-physical environment in order to remain competitive and to meet the increasing requirements for food and fibres. The scientific challenge is to evaluate the consequences of predefined scenarios, identify current “best” practices and explore future adaptation strategies at farm level. The objective of this article is to assess the impact of different climate change and socio-economic scenarios on arable farming systems in Flevoland (the Netherlands) and to explore possible adaptation strategies. Data Envelopment Analysis was used to identify these current “best” practices while bio-economic modelling was used to calculate a number of important economic and environmental indicators in scenarios for 2050. Relative differences between yields with and without climate change and technological change were simulated with a crop bio-physical model and used as a correction factors for the observed crop yields of current “best” practices. We demonstrated the capacity of the proposed methodology to explore multiple scenarios by analysing the importance of drivers of change, while accounting for variation between individual farms. It was found that farmers in Flevoland are in general technically efficient and a substantial share of the arable land is currently under profit maximization. We found that climate change increased productivity in all tested scenarios. However, the effects of different socio-economic scenarios (globalized and regionalized economies) on the economic and environmental performance of the farms were variable. Scenarios of a globalized economy where the prices of outputs were simulated to increase substantially might result in increased average gross margin and lower average (per ha) applications of crop protection and fertilizers. However, the effects might differ between different farm types. It was found that, the abolishment of sugar beet quota and changes of future prices of agricultural inputs and outputs in such socio-economic scenario (i.e. globalized economy) caused a decrease in gross margins of smaller (in terms of economic size) farms, while gross margin of larger farms increased. In scenarios where more regionalized economies and a moderate climate change are assumed, the future price ratios between inputs and outputs are shown to be the key factors for the viability of arable farms in our simulations. (C) 2013 Elsevier B.V. All rights reserved.