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Özkan, Ş., Farquharson, R. J., Hill, J., & Malcolm, B. (2015). A stochastic analysis of the impact of input parameters on profit of Australian pasture-based dairy farms under variable carbon price scenarios. Environmental Science & Policy, 48, 163–171.
Abstract: The imposition of a carbon tax in the economy will have indirect impacts on dairy farmers in Australia. Although there is a great deal of information available regarding mitigation strategies both in Australia and internationally, there seems to be a lack of research investigating the variable prices of carbon-based emissions on dairy farm operating profits in Australia. In this study, a stochastic analysis comparing the uncertainty in income in response to different prices on carbon-based emissions was conducted. The impact of variability in pasture consumption and variable prices of concentrates and hay on farm profitability was also investigated. The two different feeding systems examined were a ryegrass pasture-based system (RM) and a complementary forage-based system (CF). Imposing a carbon price ($20-$60) and not changing the systems reduced the farm operating profits by 28.4% and 25.6% in the RM and CF systems, respectively compared to a scenario where no carbon price was imposed. Different farming businesses will respond to variability in the rapidly changing operating environment such as fluctuations in pasture availability, price of purchased feeds and price of milk or carbon emissions differently. Further, in case there is a carbon price imposed for GHG emissions emanated from dairy farming systems, changing from pasture-based to more complex feeding systems incorporating home-grown double crops may reduce the reductions in farm operating profits. There is opportunity for future studies to focus on the impacts of different mitigation strategies and policy applications on farm operating profits. (C) 2015 Elsevier Ltd. All rights reserved.
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Mitter, H., Heumesser, C., & Schmid, E. (2015). Spatial modeling of robust crop production portfolios to assess agricultural vulnerability and adaptation to climate change. Land Use Policy, 46, 75–90.
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.
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Liu, X., Lehtonen, H., Purola, T., Pavlova, Y., Rötter, R., & Palosuo, T. (2016). Dynamic economic modelling of crop rotations with farm management practices under future pest pressure. Agricultural Systems, 144, 65–76.
Abstract: Agricultural practice is facing multiple challenges under volatile commodity markets, inevitable climate change, mounting pest pressure and various other environment-related constraints. The objective of this research is to present a dynamic optimization model of crop rotations and farm management and show its suitability for economic analysis over a 30 year time period. In this model, we include management practices such as fertilization, fungicide treatment and liming, and apply it in a region in Southwestern Finland. Results show that (i) growing pest pressure favours the cultivation of wheat-oats and wheat-oilseeds combinations, while (ii) market prices largely determine the crops in the rotation plan and the specific management practices adopted. The flexibility of our model can also be utilized in evaluating the value of other management options such as new cultivars under different projections of future climate and market conditions.
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Yin, X., Olesen, J. E., Wang, M., Kersebaum, K. - C., Chen, H., Baby, S., et al. (2016). Adapting maize production to drought in the Northeast Farming Region of China. European Journal of Agronomy, 77, 47–58.
Abstract: Maize (Zea mays L.) is the most prominent crop in the Northeast Farming Region of China (NFR), and drought has been the largest limitation for maize production in this area during recent decades. The question of how to adapt maize production to drought has received great attention from policy makers, researchers and farmers. In order to evaluate the effects of adaptation strategies against drought and examine the influences of policy supports and farmer households’ characteristics on adopting decisions, a large scale household survey was conducted in five representative maize production counties across NFR. Our survey results indicated that using variety diversification, drought resistant varieties and dibbling irrigation are the three major adaptation strategies against drought in spring, and farmers also adopted changes in sowing time, conservation tillage and mulching to cope with drought in spring. About 20% and 18% of households enhanced irrigation against drought in summer and autumn, respectively. Deep loosening tillage and organic fertilizer are also options for farmers to resist drought in summer. Maize yield was highly dependent on soil qualities, with yields on land of high soil quality approximately 1050 kg/ha and 2400 kg/ha higher than for normal and poor soil conditions, respectively. Using variety diversification and drought resistant varieties can respectively increase maize yield by approximately 150 and 220 kg/ha under drought. Conservation tillage increased maize yield by 438–459 kg/ha in drought years. Irrigation improved maize yield by 419–435 kg/ha and 444–463 kg/ha against drought in summer and autumn, respectively. Offering information service, financial and technical support can greatly increase the use of adaptation strategies for farmers to cope with drought. However, only 46% of households received information service, 43% of households received financial support, and 26% of households received technical support against drought from the local government. The maize acreage and the irrigation access are the major factors that influenced farmers’ decisions to apply adaptation strategies to cope with drought in each season, but only 25% of households have access to irrigation. This indicates the need for enhanced public support for farmers to better cope with drought in maize production, particularly through improving access to irrigation.
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Tao, F., Rötter, R. P., Palosuo, T., Höhn, J., Peltonen-Sainio, P., Rajala, A., et al. (2015). Assessing climate effects on wheat yield and water use in Finland using a super-ensemble-based probabilistic approach. Clim. Res., 65, 23–37.
Abstract: We adapted a large area crop model, MCWLA-Wheat, to winter wheat Triticum aestivum L. and spring wheat in Finland. We then applied Bayesian probability inversion and a Markov Chain Monte Carlo technique to analyze uncertainties in parameter estimations and to optimize parameters. Finally, a super-ensemble-based probabilistic projection system was updated and applied to project the effects of climate change on wheat productivity and water use in Finland. The system used 6 climate scenarios and 20 sets of crop model parameters. We projected spatiotemporal changes of wheat productivity and water use due to climate change/variability during 2021-2040, 2041-2070, and 2071-2100. The results indicate that with a high probability wheat yields will increase substantially in Finland under the tested climate change scenarios, and spring wheat can benefit more from climate change than winter wheat. Nevertheless, in some areas of southern Finland, wheat production will face increasing risk of high temperature and drought, which can offset the benefits of climate change on wheat yield, resulting in an increase in yield variability and about 30% probability of yield decrease for spring wheat. Compared with spring wheat, the development, photosynthesis, and consequently yield will be much less enhanced for winter wheat, which, together with the risk of extreme weather, will result in an up to 56% probability of yield decrease in eastern parts of Finland. Our study explicitly para meterized the effects of extreme temperature and drought stress on wheat yields, and accounted for a wide range of wheat cultivars with contrasting phenological characteristics and thermal requirements.
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