Integrated impact assessment of climate and socio-economic change on dairy farms in a watershed in the Netherlands

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, d...

Source: NJAS Wageningen Journal of Life Sciences - January 12, 2016 Category: Biology Source Type: research