Climate Vulnerability of Farm Households: New Methods and Evidence John M. Antle Professor of Applied Economics Oregon State University Presented at Resources for the Future January 28 2015 1 Acknowledgements AgMIP & collaborators (agmip.org) USDA Ag Research Service UKAID (DFID) USAID REACCH-PNA & collaborators 2 Themes A new “community of science” approach to agricultural systems research (AgMIP) New approaches & methods to regional and global climate change assessment Results from two new regional assessment studies Looking ahead … US assessment, AR6, and beyond 3 Agricultural Model Inter-comparison and Improvement Project (AgMIP) • A new global community of science: climate, water, soils, crops & livestock, economics, pests & diseases…led by: • Cynthia Rosenzweig, GISS and Columbia U • Jim Jones, U Florida • Jerry Hatfield, Ag Research Service, USDA • John Antle, Oregon State U • More than 600 participating scientists • Crop, livestock and economic model inter-comparisons • Protocol-based regional and global integrated assessments • Next Generation Ag System Models • Sustainable Ag Systems AgMIP.org 4 Ag, Food and Climate Change The Goal: sustainable food & nutritional security under future bio-physical and socio-economic conditions National, local and household relevance (global?) Beyond commodity production, to the entire food system Assessment not yet feasible: major data and methodological challenges remain Vulnerability: who is at risk of loss, and who can gain? Urban consumers: primarily price effects? Rural ag households: production and price changes affect income, availability, stability Mitigation and adaptation: what can we do, sustainably? 5 REACCH - Regional Approaches to Climate Change in Pacific Northwest Agriculture 5-year project funded by USDA-NIFA University of Idaho Oregon State University Washington State University USDA-ARS + 100 scientists & students Large-scale wheat-fallow and annual cropped systems typical of “industrial commodity agriculture” 6 AgMIP Regional Assessment Teams 5-year project, DFID funded 8 regional teams, 18 countries, ≈ 200 scientists Data, models, scenarios designed & implemented by multi-disciplinary teams & stakeholders Small-scale, mixed crop and crop-livestock systems; principal crops vary by region (maize, millet/peanut, rice, wheat) typical of “semisubsistence agriculture” 7 For the full AgMIP story: 8 AgMIP regional integrated assessment method: beyond average impact to vulnerability E. Linkages from subnational regions to national and global A. Global & national prices, productivity and representative ag pathways and scenarios (RAPS) System 2: < 0 (gainers) (ω) D. Technology adoption and distribution of economic, environmental and social impacts System 1: > 0 (losers) (losses) B. Complex farm household systems C. Heterogeneous regions 9 AgMIP regional integrated assessment method: beyond average impact to vulnerability TOA-MD model simulates gains and losses E. Linkages fromtradeoffs.oregonstate.edu subnational regions to national and global national prices, prices, A. Global & national productivity and representative representative ag ag scenarios (RAPS) (RAPS) pathways and scenarios (ω) (ω) System 2: < 0 (gainers) D. Technology adoption and distribution of economic, environmental and social impacts Loss System 1: > 0 (losers) Average 0 impact household systems systems B. Complex farm household (losses) (losses) C.Heterogeneous Heterogeneousregions regions C. 10 TOA-MD Model: vulnerability before and after adaptation Distribution of losses after adaptation Distribution of losses before adaptation 11 Relative yield distributions: linking biophysical and economic models to represent heterogeneity and vulnerability Relative Yields of Spring Pea Projected in 2050 at RCP 8.5 (Using Conventional Tillage) GCM 1 GCM 9 8 GCM 9 4 0 1.5 - 1.6 1.4 - 1.5 1.3 - 1.4 1.2 - 1.3 1.1 - 1.2 1 - 1.1 .9 - 1 .8 - .9 .7 - .8 2 Density 10 5 1.5 - 1.6 1.4 - 1.5 1.3 - 1.4 1.2 - 1.3 1.1 - 1.2 1 - 1.1 .9 - 1 .8 - .9 .7 - .8 0 Density 6 15 GCM 1 .9 1 1.1 1.2 1.3 1.4 .6 .8 GCM 2 1 1.2 1.4 1.2 1.4 GCM 10 8 GCM 10 4 2 Density 1.5 - 1.6 1.4 - 1.5 1.3 - 1.4 1.2 - 1.3 1.1 - 1.2 1 - 1.1 .9 - 1 .8 - .9 .7 - .8 0 2 4 6 1.5 - 1.6 1.4 - 1.5 1.3 - 1.4 1.2 - 1.3 1.1 - 1.2 1 - 1.1 .9 - 1 .8 - .9 .7 - .8 0 Density 8 6 10 GCM 2 .6 .8 1 1.2 1.4 .6 .8 1 Source: Author and collaborators, REACCH-PNA Project 12 Representative Ag Pathways: assessing CC impacts under plausible future bio-physical and socio-economic conditions Many regional assessments simulate impacts of future climate under current socio-economic conditions AgMIP RIA methods create plausible future scenarios Global “Shared Socio-Economic Pathways” Agriculture-specific bio-physical and socioeconomic pathways (RAPs) Created by regional teams with stakeholder input 13 Extent of Vulnerability (% households vulnerable to loss) Extent of Vulnerability without adaptation: AgMIP Sub-Saharan Africa & South Asia Teams -40.0 120.0 100.0 Each point a regional scenario: Blue = CC + current socio-econ conditions Red = CC + future socio-econ conditions (higher prices, incomes) 80.0 60.0 Compare to IPCC 40.0 projected range of average yield changes (-40 % to 0) 20.0 -30.0 -20.0 0.0 -10.0 0.0 10.0 20.0 Net Economic Impact (% of farm income) Q1 30.0 40.0 50.0 Q2 14 Extent of Vulnerability without adaptation: Extent of Vulnerability (% households vulnerable to loss) REACCH-PNA winter wheat – fallow -40 80 70 60 Maroon = large farms: CC + current conditions & prices Blue = large farms: CC + future cond + high prices Black = large farms: CC + future conditions + low prices Green = small farms: CC + current conditions & prices Red = small farms: CC + future conditions + high prices Tan = small farms: CC + future conditions + low prices 50 40 Future scenarios: • Dysfunctional world • Business as usual • Sustainable world 30 20 10 0 -30 Q1 -20 Q2 - HH -10 0 10 20 Net Economic Impact (% of farm income) Q2 - LL Q1 - Small Q2 - Small - High 30 40 50 Q2 - Small - Low 15 Extent of Vulnerability without adaptation: AgMIP Regions + REACCH Extent of Vulnerability (% households vulnerable to loss) 120.0 -40.0 100.0 Blue = AgMIP CC + current socio-econ conditions Red = AgMIP CC + future socio-econ conditions Green = REACCH all scenarios 80.0 60.0 40.0 20.0 0.0 -30.0 -20.0 -10.0 0.0 10.0 20.0 Net Economic Impact (% of farm income) Q1 Q2 30.0 40.0 50.0 Q2 PNW 16 Magnitude of Vulnerability without adaptation: AgMIP Sub-Saharan Africa & South Asia Teams 50.0 Level of Vulnerability (% loss in farm income) 45.0 40.0 Blue = CC + current socio-econ conditions Red = CC + future socio-econ conditions 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -40.0 -30.0 -20.0 -10.0 0.0 10.0 Net Impact (% of farm income) Q1 20.0 30.0 40.0 Q2 17 Magnitude of Vulnerability without adaptation: AgMIP Teams + REACCH 60.0 50.0 Level of Vulnerability (% loss in farm income) Level of Vulnerability (% loss in farm income) 50.0Blue = AgMIP CC + current socio-econ conditions 40.0 40.0 -30.0 -40.0 35.0 30.0 30.0 25.0 20.0 20.0 15.0 10.0 10.0 5.0 0.0 -40.0 Red = AgMIP CC + future socio-econ conditions Green = REACCH all scenarios 45.0 -20.0 -30.0 0.0 -10.0 -10.0 0.0 0.0 10.0 10.0 20.020.0 -20.0 NetNet Impact farmincome) income) Impact(% (% of of farm Q1 Q2 Q1 30.0 30.0 40.0 40.0 50.0 Q2Q2 PNW 18 Taking Action: Designing & Testing Meaningful Mitigation and Adaptation Strategies • Large-scale models lack sufficient detail for this purpose! • Systems approach essential to design & test sustainable mitigation and adaptation options • Agronomic adaptation: variety choice, timing of operations, etc • Economic adaptation: intensive margin (within system crop choice, land allocation) and extensive margin (between system) • Sustainability: genetic, soil, water resources, health & nutrition, … • Future society: industry structure, infrastructure, policy, institutions • AgMIP Regional Teams, REACCH • strategies developed with local stakeholders • use plausible future scenarios…”Representative Ag Pathways” 19 Looking ahead…the AgMIP agenda • Translating impacts on income into food & nutritional security, financial, environmental outcomes • Expand coordinated regional-global integrated assessments • • • • Protocol-based for transparency, comparability New generation of modular, open-source, inter-operable models & data Evaluation of climate, model, scenario uncertainty Relevance: stakeholder-designed adaptation mitigation strategies • Working with many partners towards next US assessment, AR6 and beyond! 20 Impact of CC on yields? Source: IPCC AR-5, WGII, Ch 7. Median yield changes (%) for RCP8.5 (2070–2099 in comparison to 1980–2010 baseline) with CO2 effects over five GCMs x seven GGCMs for rainfed maize (35 ensemble members). Hatching indicates areas where more than 70% of the ensemble members agree on the directionality of the yield change. Gray areas indicate historical areas with little to no yield capacity (Rosenzweig et al., PNAS 2013). 21 Are we at a turning point for agricultural prices? Source: IPCC AR-5, WGII, Ch 7 • AgMIP global econ model inter-comparison (Nelson et al. PNAS 2014): • • • Without climate change, trend to 2050 highly uncertain (+/- 50%) Effect of climate change likely positive, but also highly uncertain (0 to + 50%) Results strongly determined by assumed productivity trends 22