Abstract: This paper summarises the simulated effects on Finnish agrcultural production and trade of a 20% decrease in Finnish demand for red meat (beef, pork, lamb). According to our results, reduced red meat consumption would be offset by increased consumption of poultry meat, eggs, dairy products and fish, as well as small increases in consumption of fruits and vegetables, peas, nuts, cereal products and sweets. By including the derived demand changes in an agricultural sector model, we show that livestock production in Finland, incentivised by national production-linked payments for milk and bovine animals, would decrease by much less than 20% due to the complex nature of agricultural production and trade. Overall, assuming unchanged consumer preferences and agricultural policy, a 20% reduction in red meat consumption is not likely to lead to a substantial decrease in livestock production or changed land use, or greenhouse gas emissions, from Finnish agriculture.

Abstract: Towards 2050, climate change is one of the possible drivers that will change the farming landscape, but market, policy and technological development may be at least equally important. In the last decade, many studies assessed impacts of climate change and specific adaptation strategies. However, adaptation to climate change must be considered in the context of other driving forces that will cause farms of the future to look differently from today’s farms. In this paper we use a historical analysis of the influence of different drivers on farm structure, complemented with literature and stakeholder consultations, to assess future structural change of farms in a region under different plausible futures. As climate change is one of the drivers considered, this study thus puts climate change impact and adaptation into the context of other drivers. The province of Flevoland in the north of The Netherlands was used as case study, with arable farming as the main activity. To account for the heterogeneity of farms and to indicate possible directions of farm structural change, a farm typology was developed. Trends in past developments in farm types were analyzed with data from the Dutch agricultural census. The historical analysis allowed to detect the relative importance of driving forces that contributed to farm structural changes. Simultaneously, scenario assumptions about changes in these driving forces elaborated at global and European levels, were downscaled for Flevoland, to regional and farm type level in order to project impacts of drivers on farm structural change towards 2050. Input from stakeholders was also used to detail the downscaled scenarios and to derive historical and future relationships between drivers and farm structural change. These downscaled scenarios and future driver-farm structural change relationships were used to derive quantitative estimations of farm structural change at regional and farm type level in Flevoland. In addition, stakeholder input was used to also derive images of future farms in Flevoland. The estimated farm structural changes differed substantially between the two scenarios. Our estimations of farm structural change provide a proper context for assessing impacts of and adaptation to climate change in 2050 at crop and farm level.

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.