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 global land system is facing unprecedented pressures from growing human populations and climatic change. Understanding the effects these pressures may have is necessary to designing land management strategies that ensure food security, ecosystem service provision and successful climate mitigation and adaptation. However, the number of complex, interacting effects involved makes any complete understanding very difficult to achieve. Nevertheless, the recent development of integrated modelling frameworks allows for the exploration of the co-development of human and natural systems under scenarios of global change, potentially illuminating the main drivers and processes in future land system change. Here, we use one such integrated modelling framework (the CLIMSAVE Integrated Assessment Platform) to investigate the range of projected outcomes in the European land system across climatic and socio-economic scenarios for the 2050s. We find substantial consistency in locations and types of change even under the most divergent conditions, with results suggesting that climate change alone will lead to a contraction in the agricultural and forest area within Europe, particularly in southern Europe. This is partly offset by the introduction of socioeconomic changes that change both the demand for agricultural production, through changing food demand and net imports, and the efficiency of agricultural production. Simulated extensification and abandonment in the Mediterranean region is driven by future decreases in the relative profitability of the agricultural sector in southern Europe, owing to decreased productivity as a consequence of increased heat and drought stress and reduced irrigation water availability. The very low likelihood (<33% probability) that current land use proportions in many parts of Europe will remain unchanged suggests that future policy should seek to promote and support the multifunctional role of agriculture and forests in different European regions, rather than focusing on increased productivity as a route to agricultural and forestry viability.