The Economic Impacts of Climate Change and Climatic Extremes ...

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  • Title: The Economic Impacts of Climate Change and Climatic Extremes on the Mixed Farms of the Canadian Prairie
  • Author(s): Santosh Poudel, Suren Kulshreshtha, Elaine Wheaton
  • Publisher: Common Ground Research Networks
  • Collection: Common Ground Research Networks
  • Series: Climate Change: Impacts and Responses
  • Journal Title: The International Journal of Climate Change: Impacts and Responses
  • Keywords: Climate Change, Climate Extremes, Inter-Annual Variability, Economic Impacts, Adaptation, Farm Profitability, Cash Flow, Liquidity
  • Volume: 9
  • Issue: 4
  • Year: 2017
  • ISSN: 1835-7156 (Print)
  • DOI: https://doi.org/10.18848/1835-7156/CGP/v09i04/35-52
  • Citation: Poudel, Santosh, Suren Kulshreshtha, and Elaine Wheaton. 2017. "The Economic Impacts of Climate Change and Climatic Extremes on the Mixed Farms of the Canadian Prairie." The International Journal of Climate Change: Impacts and Responses 9 (4): 35-52. doi:10.18848/1835-7156/CGP/v09i04/35-52.
  • Extent: 18 pages

Abstract

The impacts of climate change as well as its variability were assessed by including projected inter-annual climate variabilities and their economic impacts on mixed-farm settings. A whole farm simulation model was developed to integrate models of beef cattle and crop production with models of economic decisions. The results indicated that the Canadian Prairie mixed-farm business is a viable enterprise for both the baseline and future scenarios. The estimated impacts on beef cattle and crops as well as on the farm as a whole imply that both crop and beef cattle production would benefit from future climate change. Frequent feed shortages may occur due to weather extremes in the future, but they are not serious enough to threaten the viability of mixed farms. At the whole-farm level, climate change would bring positive impacts by increasing the long-term profitability, liquidity, and net worth positions of Prairie mixed farms. However, many research gaps exist and optimistic climate and yield scenarios were used. Policies should emphasize developing early warning systems and climate-resilient management and technologies to better adapt to the impacts of extreme climate events, with the objectives of minimizing impacts and optimizing benefits.