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The current paper investigates the medium term economic impact of climate changes on the EU agriculture. The yield change data under climate change scenarios are taken from the BIOMA (Biophysical Models Application) simulation environment. We employ CAPRI modelling framework to identify the EU aggregate economic effects as well as regional impacts. We take into account supply and market price adjustments of the EU agricultural sector as well as technical adaptation of crops to climate change. Overall results indicate an increase in yields and production level in the EU agricultural sector due to the climate change. In general, there are relatively small effects at the EU aggregate. For example, the value of land use and welfare change by approximately between -2% and 0.2%. However, there is a stronger impact at regional level with some stronger effects prevailing particularly in the Central and Northern EU and smaller impacts are observed in Southern Europe. Regional impacts of climate change vary by a factor higher up to 10 relative to the aggregate EU impacts. The price adjustments reduce the response of agricultural sector to climate change in particular with respect to production and income changes. The technical adaption of crops to climate change may result in a change production and land use by a factor between 1.4 and 6 relative to no-adaptation situation.

SUMMARYThe latest Common Agricultural Policy (CAP) reforms could bring substantial changes to Scottish farming communities. Two major components of this reform package, an introduction of environmental measures into the Pillar 1 payments and a move away from historical farm payments towards regionalized area payments, would have a significant effect on altering existing support structures for Scottish farmers, as it would for similar farm types elsewhere in Europe where historic payments are used. An optimizing farm-level model was developed to explore how Scottish beef and sheep farms might be affected by the greening and flat rate payments under the current CAP reforms. Nine different types of beef and sheep farms were identified and detailed biophysical and financial farm-level data for these farm types were used to parameterize the model. Results showed that the greening measures of the CAP did not have much impact on net margins of most of the beef and sheep farm businesses, except for ‘Beef Finisher’ farm types where the net margins decreased by 3%. However, all farm types were better off adopting the greening measures than not qualifying for the greening payments through non-compliance with the measures. The move to regionalized farm payments increased the negative financial impact of greening on most of the farms but it was still substantially lower than the financial sacrifice of not adopting greening measures. Results of maximizing farm net margin, under a hypothetical assumption of excluding farm payments, showed that in most of the mixed (sheep and cattle) and beef suckler cattle farms the optimum stock numbers predicted by the model were lower than actual figures on farm. When the regionalized support payments were allocated to each farm, the proportion of the mixed farms that would increase their stock numbers increased whereas this proportion decreased for beef suckler farms and no impact was predicted in sheep farms. Also under the regionalized support payments, improvements in profitability were found in mixed farms and sheep farms. Some of the specialized beef suckler farms also returned a profit when CAP support was added.

Climate change has the potential to impair livestock health, with consequences for animal welfare, productivity, greenhouse gas emissions, and human livelihoods and health. Modelling has an important role in assessing the impacts of climate change on livestock systems and the efficacy of potential adaptation strategies, to support decision making for more efficient, resilient and sustainable production. However, a coherent set of challenges and research priorities for modelling livestock health and pathogens under climate change has not previously been available. To identify such challenges and priorities, researchers from across Europe were engaged in a horizon-scanning study, involving workshop and questionnaire based exercises and focussed literature reviews. Eighteen key challenges were identified and grouped into six categories based on subject-specific and capacity building requirements. Across a number of challenges, the need for inventories relating model types to different applications (e.g. the pathogen species, region, scale of focus and purpose to which they can be applied) was identified, in order to identify gaps in capability in relation to the impacts of climate change on animal health. The need for collaboration and learning across disciplines was highlighted in several challenges, e.g. to better understand and model complex ecological interactions between pathogens, vectors, wildlife hosts and livestock in the context of climate change. Collaboration between socio-economic and biophysical disciplines was seen as important for better engagement with stakeholders and for improved modelling of the costs and benefits of poor livestock health. The need for more comprehensive validation of empirical relationships, for harmonising terminology and measurements, and for building capacity for under-researched nations, systems and health problems indicated the importance of joined up approaches across nations. The challenges and priorities identified can help focus the development of modelling capacity and future research structures in this vital field. Well-funded networks capable of managing the long-term development of shared resources are required in order to create a cohesive modelling community equipped to tackle the complex challenges of climate change.

Further ReadingWe might expect to see pressure from UK citizens for the application of British standards to imports from elsewhere.