Abstract: Climate and socio-economic change will affect the land use and the economic viability of Dutch dairy farms. Explorations of future scenarios, which include different drivers and impacts, are needed to perform ex-ante policy assessment. This study uses a bio-economic farm model to assess impacts of climate and socio-economic change on dairy farms in a sandy area in the Netherlands. Farm data from the Farm Accountancy Data Network provided information on the current production levels and available farm resources. First, the farm plans of individual farms were optimized in the current situation to benchmark farms and assess the current scope for improvement. Secondly, simulations for two scenarios were included: a Global Economy with 2 °C global temperature rise (GE/W+) and a Regional Community with 1 °C global temperature rise (RC/G). The impacts of climate change, extreme events, juridical change (including abolishment of milk quota), technological change and price changes were evaluated in separate model runs within the predefined scenarios. We found that farms can increase profit both by intensification and land expansion; the latter especially for medium sized farms (less than 70 cows). Climate change including the effect of increased occurrence of extreme events may negatively affect farm gross margin in the GE/W+ scenario. Lower gross margins are compensated for by the effects of technology and price changes. In contrast with the GE/W+ scenario, climate change has positive impacts on farm profit in RC/G, but less favourable farm input-output price ratios have a negative effect. Technological change is needed to compensate for revenue losses due to higher input prices. In both GE/W+ and RC/G scenarios, dairy farms increase production and the use of artificial fertilizer. Medium sized farms have more options to increase profit than the large farms: they benefit more from the abolishment of the milk quota and better adapt to negative and positive impacts of climate change. While the exact impact of different drivers will always remain uncertain, this study showed that changes in prices, technology and markets have a relatively larger impact than climate change, even when extreme events are taken into account. By using whole farm plans as activities that can be selected, the model is grounded in observations, and it was shown that half of the farms are gross margin maximizers as assumed in the model. The model therefore indicates ‘what could happen if’, and gives insights in drivers and impacts of dairy farming in the region.

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: A major challenge of the 21st century is to achieve food supply security under a changing climate and roughly a doubling in food demand by 2050 compared to present, the majority of which needs to be met by the cereals wheat, rice, maize, and barley. Future harvests are expected to be especially threatened through increased frequency and severity of extreme events, such as heat waves and drought, that pose particular challenges to plant breeders and crop scientists. Process-based crop models developed for simulating interactions between genotype, environment, and management are widely applied to assess impacts of environmental change on crop yield potentials, phenology, water use, etc. During the last decades, crop simulation has become important for supporting plant breeding, in particular in designing ideotypes, i.e. ‘model plants’, for different crops and cultivation environments. In this review we (i) examine the main limitations of crop simulation modelling for supporting ideotype breeding, (ii) describe developments in cultivar traits in response to climate variations, and (iii) present examples of how crop simulation has supported evaluation and design of cereal cultivars for future conditions. An early success story for rice demonstrates the potential of crop simulation modelling for ideotype breeding. Combining conventional crop simulation with new breeding methods and genetic modelling holds promise to accelerate delivery of future cereal cultivars for different environments. Robustness of model-aided ideotype design can further be enhanced through continued improvements of simulation models to better capture effects of extremes and the use of multi-model ensembles.