Abstract: An integrated modelling framework (IMF) is developed to analyse impacts of climate andpolicy changes on farm welfare and the environment. The IMF is applied on two contrasting grassland (south) and cropland (north) dominated Austrian landscapes. The IMF combines the crop rotation model CropRota, the bio-physical process model EPIC and the bio-economic farm model FAMOS[space] and applies combined climate change and policy scenarios. Changing policies reduce farm gross margins by -36% and -5% in the two landscapes respectively. Climate change increases gross margins and farms can reach pre-reform levels on average. Climate induced intensification such as removing of landscape elements andincreasing fertilization can be moderated by an agri-environmental program (AEP). However, productivity gains from climate change increase the opportunity costs for AEP participation.

Abstract: We present an integrated land use modelling framework (ILM) to analyze impacts of climate change and CAP reform as well as farm adaptation using economic, biotic and abiotic indicators at field, farm and landscape scales. The IML is applied on the two contrasting landscapes in the Austrian MACSUR regional pilot study. The scenarios cover climate and policy changes until 2040. The anticipated policy changes lead to declines in farm gross margins by -36% and -5% in the two landscapes, respectively. In contrast, climate change leads to higher gross margins, where farms can reach pre-reform levels on average. Environmental impacts such as removing of landscape elements and increasing fertilization can be moderated by an agri-environmental program, but the opportunity costs of program participation may increase.