AbstractsEconomics

Economic Impacts of Climate Change and Weather Extremes on Canadian Prairie Mixed Farms

by author] [No




Institution: University of Saskatchewan
Department:
Year: 2016
Keywords: Climate Change; Weather Extremes; Vulnerability Mixed Farms; Economic Viability
Posted: 02/05/2017
Record ID: 2069648
Full text PDF: http://hdl.handle.net/10388/ETD-2016-01-2412


Abstract

Canadian Prairie agriculture, in general, is expected to benefit under climate change with increasing mean temperatures projected for the immediate future. However, a number of knowledge gaps still exist. Foremost among these is the measurement of the effects of extreme climate events in a given year as well as their long-term impact on the supply of agricultural products, and also the financial situation of farms. In addition, the economic impacts of climate change on livestock operations are relatively under-studied. In particular, knowledge of the impacts on Prairie beef cattle remains more guesswork than research-based evidence. This dissertation assesses the impact of changes in the normal climate as well as the impact of climate extremes by including projected inter-annual climate variability. The economic impact of these changes on crops, beef cattle activities and the viability of farms in mixed operation settings is measured. Correspondingly, this work presents alternative adaptation measures and their likely use in managing mixed farm operations for future extreme weather events. For the analysis, two study sites are selected: (1) the Oldman River Basin of Alberta, called Pincher Creek, and (2) the Swift Current Creek Basin of Saskatchewan, called Swift Current. This study is a part of a larger project entitled “Vulnerability and Adaptation to Climate Extremes in the Americas” and the study sites are intended to represent the project catchment areas in the provinces of Alberta and Saskatchewan. I develop what I call a MF-CCE model (Mixed Farm model for the economic impact assessment of Climate Change and Extremes). The MF-CCE is a whole farm simulation model that integrates models of beef cattle production, crop production and climate changes into farm level economic decisions. Simulations are conducted over a 30-year period in each climate scenario: the first of these is a baseline climate scenario from 1971-2000, and I also simulate future climate change impacts for the 2041-2070 era. The modelled farms produce enough crops, hay and pasture to support the beef cattle feed demand. Pasture demand and supply are linked by specific pasture requirements and productivity. Beef herd feed grain demand and on-farm supply are linked by a linear programming optimization algorithm. Crop mix for the market is selected through the development of a multi-year linear programming problem that maximizes the present value of gross margins. Crop and hay productivity are estimated through the Food and Agriculture Organization’s (FAO’s) AquaCrop (version 3) modeling framework, while annual pasture productivity is estimated using the Forage Calculator for Native Rangeland obtained from the Saskatchewan Research Council (SRC). The AquaCrop is a water-driven crop simulation model, termed a crop water productivity (WP) model which simulates the yield response of herbaceous crops to water availability and use. The model is believed to be superior in simulating crop yield in the conditions where water is a key limiting factor in… Advisors/Committee Members: Kulshreshtha, Suren N (advisor), Micheels, Eric (committeeMember), Wheaton, Elaine (committeeMember), Nolan, James (committeeMember).