Abstract: Agricultural vulnerability to climate change is likely to vary considerably between agro-environmental regions. Exemplified on Austrian cropland, we aim at (i) quantifying climate change impacts on agricultural vulnerability which is approximated by the indicators crop yields and gross margins, (ii) developing robust crop production portfolios for adaptation, and (iii) analyzing the effect of agricultural policies and risk aversion on the choice of crop production portfolios. We have employed a spatially explicit, integrated framework to assess agricultural vulnerability and adaptation. It combines a statistical climate change model for Austria and the period 2010-2040, a crop rotation model, the bio-physical process model EPIC (Environmental Policy Integrated Climate), and a portfolio optimization model. We find that under climate change, crop production portfolios include higher shares of intensive crop management practices, increasing average crop yields by 2-15% and expected gross margins by 3-18%, respectively. The results depend on the choice of adaptation measures and on the level of risk aversion and vary by region. In the semi-arid eastern parts of Austria, average dry matter crop yields are lower but gross margins are higher than in western Austria due to bio-physical and agronomic heterogeneities. An abolishment of decoupled farm payments and a threefold increase in agri-environmental premiums would reduce nitrogen inputs by 23-33%, but also crop yields and gross margins by 18-37%, on average. From a policy perspective, a twofold increase in agri-environmental premiums could effectively reduce the trade-offs between crop production and environmental impacts. (C) 2015 Elsevier Ltd. All rights reserved.

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: The diversity in farmers’ objectives and responses to external drivers is usually not considered in integrated assessment studies that investigate impacts and adaptation to climate and socio-economic change. Here, we present an approach to assess how farmers’ stated objectives relate to their currently implemented practices and to preferred adaptation options, and we discuss what this implies for assessments of future changes. We based our approach on a combination of multi-criteria decision-making methods. We consistently assessed the importance of farmers’ objectives and adaptation preferences from what farmers say (based on interviews), from what farmers actually do (by analysing current farm performance) and from what farmers want (through a selected alternative farm plan). Our study was performed for six arable farms in Flevoland, a province in the Netherlands. Based on interviews with farmers, we reduced the long list of possible objectives to the most important ones. The objectives we assessed included maximization of economic result and soil organic matter, and minimization of gross margin variance, working hours and nitrogen balance. In our sample, farmers’ stated preferences in objectives were often not fully reflected in realized farming practices. Adaptation preferences of farmers largely resembled their current performance, but generally involved a trend towards stated preferences. Our results suggest that in Flevoland, although farmers do have more objectives, in practical decision-making they focus on economic result maximization, while for strategic decision-making they account for objectives influencing long-term performance and indicators associated with sustainability, in this case soil organic matter.