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: Sunflower is one of the major oilseeds produced in Tanzania, but due to insufficient domestic production more than half of the country’s demand is imported. The improvement of the sunflower food value chain (FVC) understanding is important to ensure an increase in the production, availability, and quality of edible oil. In order to analyse causes and propose solutions to increase the production of sunflower oil, a conceptual framework that proposes the combined use of different models to provide insights about the sunflower FVC was developed. This research focus on the identification of agricultural models that can provide a better understanding of the sunflower FVC in Tanzania, especially within the context of food security improvement. A FVC scheme was designed considering the main steps of sunflower production. Thereafter, relevant models were selected and placed along each step of the FVC. As result, the sunflower FVC model in Tanzania is organized in five steps, namely (1) natural resources; (2) crop production; (3) oil processing; (4) trade; and (5) consumption. Step 1 uses environmental indicators to analyse soil parameters on soil-water models (SWAT, LPJmL, APSIM or CroSyst), with outputs providing data for step 2 of the FVC. In the production step, data from step 1, together with other inputs, is used to run crop models (DSSAT, HERMES, MONICA, STICS, EPIC or AquaCrop) that analyse the impact on sunflower yields. Thereafter, outputs from crop models serve as input for bio-economic farm models (FSSIM or MODAM) to estimate production costs and farm income by optimizing resource allocation planning for step 2. In addition, outputs from crop models are used as inputs for macro-economic models (GTAP, MAGNET or MagPie) by adjusting supply functions and environmental impacts within steps 3, 4, and 5. These models simulate supply and demand, including the processing of products to determine prices and trade volumes at market equilibrium. In turn, these data is used by bio-economic farm models to assess sunflower returns for different farm types and agro-environmental conditions. Due to the large variety of models, it is possible to assess significant parts of the FVC, reducing the need to make assumptions, while improving the understanding of the FVC.

Abstract: Highlights • We analyze the economic effects of plant breeding research in Germany. • Effects of reduced CO2 emissions due to productivity increases are being quantified. • Expansion of global agricultural area has been reduced by 1–1.5 million ha. • CO2 emissions have been reduced by 160–235 million tons. • German plant breeding research has an economic value of 10.8–15.6 billion EUR. Abstract We analyze the economic effects of plant breeding research in Germany. In addition to market effects, for the first time also effects of reduced CO2 emissions due to productivity increases are being quantified. The analysis shows that investments in German plant breeding research in the period 1991–2010 have reduced the global expansion of agricultural area by 1–1.5 million hectares. This has led to reduced CO2 emissions of 160–235 million tons. The economic value generated by plant breeding research, through increased production and reduced greenhouse gas emissions, is estimated at 10.8–15.6 billion EUR in the same period. This can be translated into a social rate of return on research investment in the range of 40–80% per year. Projections for the period 2011–2030 generate a return rate in the range of 65–140% per year. Investments into plant breeding research in Germany are highly profitable from a societal point of view. At the same time, our results show significant under-investments in agricultural research in Germany. These results provide a good justification for policy-makers to reverse funding cuts for public agricultural research over the last decades and to improve institutional conditions for private research, e.g. through better protection of intellectual property rights.