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General enquiries on this form should be made to: Defra, Science Directorate, Management Support and Finance Team, Telephone No. 020 7238 1612 E-mail: [email protected] SID 5 Research Project Final Report Note In line with the Freedom of Information Act 2000, Defra aims to place the results of its completed research projects in the public domain wherever possible. The SID 5 (Research Project Final Report) is designed to capture the information on the results and outputs of Defra-funded research in a format that is easily publishable through the Defra website. A SID 5 must be completed for all projects. 1. Defra Project code 2. Project title This form is in Word format and the boxes may be expanded or reduced, as appropriate. 3. ACCESS TO INFORMATION The information collected on this form will be stored electronically and may be sent to any part of Defra, or to individual researchers or organisations outside Defra for the purposes of reviewing the project. Defra may also disclose the information to any outside organisation acting as an agent authorised by Defra to process final research reports on its behalf. Defra intends to publish this form on its website, unless there are strong reasons not to, which fully comply with exemptions under the Environmental Information Regulations or the Freedom of Information Act 2000. Defra may be required to release information, including personal data and commercial information, on request under the Environmental Information Regulations or the Freedom of Information Act 2000. However, Defra will not permit any unwarranted breach of confidentiality or act in contravention of its obligations under the Data Protection Act 1998. Defra or its appointed agents may use the name, address or other details on your form to contact you in connection with occasional customer research aimed at improving the processes through which Defra works with its contractors. SID 5 (Rev. 3/06) Project identification AC0307 Climate change impacts on the livestock sector Contractor organisation(s) SAC Commercial Ltd Kings Buildings West Mains Rd Edinburgh EH9 3JG 54. Total Defra project costs (agreed fixed price) 5. Project: Page 1 of 24 £ 199,661 start date ................ 01 April 2007 end date ................. 31 March 2009 6. It is Defra’s intention to publish this form. Please confirm your agreement to do so. ................................................................................... YES NO (a) When preparing SID 5s contractors should bear in mind that Defra intends that they be made public. They should be written in a clear and concise manner and represent a full account of the research project which someone not closely associated with the project can follow. Defra recognises that in a small minority of cases there may be information, such as intellectual property or commercially confidential data, used in or generated by the research project, which should not be disclosed. In these cases, such information should be detailed in a separate annex (not to be published) so that the SID 5 can be placed in the public domain. Where it is impossible to complete the Final Report without including references to any sensitive or confidential data, the information should be included and section (b) completed. NB: only in exceptional circumstances will Defra expect contractors to give a "No" answer. In all cases, reasons for withholding information must be fully in line with exemptions under the Environmental Information Regulations or the Freedom of Information Act 2000. (b) If you have answered NO, please explain why the Final report should not be released into public domain Executive Summary 7. The executive summary must not exceed 2 sides in total of A4 and should be understandable to the intelligent non-scientist. It should cover the main objectives, methods and findings of the research, together with any other significant events and options for new work. SID 5 (Rev. 3/06) Page 2 of 24 This report considers the issue of climate change adaptation as it applies to the UK livestock sector comprising the beef, dairy, sheep, pigs and poultry industries. Beyond an understanding of direct impacts from warming, a key policy consideration relates to indirect or ancillary costs that might arise incidental to any accelerated private adaptation decision-making. That is, how changing patterns of autonomous or private on-farm adaptation responses might exacerbate external impacts in terms of animal welfare from heat stress, disease and diffuse pollution to water and air. In relation to the latter, an important consideration is how adaptation responses potentially undermine other environmental objectives including greenhouse gas mitigation strategies. In this report, UKCIP 02 climate projections are applied across a representative set of UK regions to determine potential impacts across the main livestock categories. This information is developed with a view to quantifying a range of significant impact categories that can be expected under a central warming scenario. These impacts are necessarily limited to those that we currently consider most significant in terms of the potential cost to the industries and wider society. Economic damage estimates are then derived for these impacts under a business as usual scenario, which assumes that animal numbers remain stable and that autonomous adaptation does not occur. While there is potential for under-estimating autonomous adaptation, and therefore over-estimating damage costs, this analysis provides an initial estimate of the value at risk in livestock sectors and beyond, and will be indicative of the likely adaptations required. The relevant impact categories include pastoral/grassland productivity, waste generation (by livestock), heat stress, and disease. In-field management decisions can also be expected to impact upon biodiversity and potentially water quality. However, identifying the potential impacts of adaptations is beyond the scope of this project. In sketching out the impacts resulting from the warming scenario, we also have to assume certain behavioural responses by producers and in some cases, the distinction between an impact and an adaptation is blurred. The effect of climate change on pastoral systems and regions is likely to increase grass production. Increased forage availability could increase the annual grazing period by a maximum of five weeks for cattle systems, and seven weeks for sheep systems. In most regions this will allow animals to be kept outdoors for longer, and could mean a potential reduction in the proportion of the year that animals require housing and/or access to conserved forages. The changes in length of the grass growth season are generally more substantial in northerly than in southerly regions. Changes in husbandry in response to changes in forage availability may lead to greater potential gains in terms of private productivity. However, any change will also have potential welfare and disease exposure consequences. For example, a prolonged grazing season extends the exposure to environmental populations of parasites and pathogens. Increased grass/grazing can also imply an increase in the acidifying gases and, in the case of the beef and dairy sectors, diffuse pollution loading. The increases in acidifying gases are mainly due to increases in ammonia emissions from slurry. The net global warming impact of the two gases (methane and nitrous oxide) will decrease: on the one hand we predict a reduction in the emissions of nitrous oxide for all sectors. But this will be offset by increased methane emissions due to ruminants being fed more grass and forage. There are some variations between regions for all the livestock types, and the magnitude of the change tends to increase with time for all the environmental pollutants. Climate change, including extreme events, will also affect animal systems and transportation, leading to production and functional losses and increased potential mortality and morbidity costs. We predict that by 2080 mortality costs related to heat stress could amount to around £34 million (present value). These represent private losses and we can expect industry to adapt if guided by appropriate regulatory reform and surveillance. The addition of extreme events to gradual climate change may provide a “shock” to livestock systems. The results show that the damages due to a warming climate will be amplified with the additional stress of extreme events, such as a heat wave. Also, some of the impacts of climate change on animal production and functionality (e.g., health and welfare) may be further exacerbated by adaptations farmers make in other areas of the farming system, such as taking advantage of a longer growing season and keeping animals outdoors for longer periods, thus increasing livestock exposure to prevailing weather conditions. Some of the private adaptations that livestock keepers will put in place to minimise the impact of climate change will not have a large cost (e.g., changing grazing patterns, introducing shelter belts in fields). However, some adaptations may require larger scale interventions and therefore higher costs (e.g., new buildings, introduction of mechanical ventilation/heating) which some livestock keepers may not be able to afford. SID 5 (Rev. 3/06) Page 3 of 24 Climate change has the potential to drive outbreaks of highly infectious exotic disease in the UK livestock industries. Our understanding of the disease risks and impacts (both endemic and exotic) of climate change are limited by data that are required to inform predictive modelling, although the climate signal is likely to increase the risk of exposure of livestock to a range of pathogens and parasites (some may decline). Climate matching techniques offer immediate returns in highlighting diseases of immediate concern for future research, however, process based modelling techniques offer the potential for increased predictive power. Despite the lack of more specific climate-epidemiology modelling, some existing evidence suggests that episodes of certain diseases can lead to significant economic impacts within and beyond the sector. There is also an increased potential for accelerated drug resistance. For each of the preceding impact categories we consider the nature of any adaptation responses and whether there are unanticipated external costs occasioned by private adaptation choices. Overall, we do not yet find compelling evidence on social costs in terms of increased greenhouse gases from management changes, though the impacts of diffuse pollution to water may warrant further investigation in terms of linking waste generation to water quality objectives in specific receiving waters. Nevertheless we consider that public adaptation needs are often convergent with the aims of existing national and EU environmental regulations (e.g. climate change mitigation plans or Nitrates Directive). We suggest a need for further examination of extreme event information, and for detailed modelling of new disease threats. The broad conclusion we reach at this point is that while there is a need to adapt to climate changes, the extent of required adaptation is largely within the capacity of the livestock industry and can be motivated by information to provoke an attitudinal shift and increased awareness that climate change presents certain risks that need to be factored into farm and production planning. Relevant information includes clear data on the potential frequency and magnitude of extreme events. Information provision is simply a basis of facilitating informed private action. In addition to improved scenario information, some regulatory reform may also be required to accommodate changing housing and transportation requirements. In the case of disease, the returns to anticipatory disease surveillance investments already yield demonstrably good rates of return, and will therefore continue to be a good adaptation strategy. Rapid identification of emergent disease challenges is often a critical factor affecting the effort required for control. Consideration should be given to more pro-active early warning systems and the potential use of fast throughput screening technologies deployed outside of and within the UK. Instigation of long term parasite and pathogen monitoring schemes would greatly improve our capacity to accurately predict emergent disease challenges to the livestock industries that are driven by climate change. Proposed costsharing instruments can also be considered part of a rational public adaptation strategy that attempts to modify producer behaviour and re- allocated responsibility for disease costs. The agenda suggested here does not currently represent a radical change from the gradual autonomous adaptation that characterises the adjustments different parts of the industry have had to undertake in response to market liberalisation and other changes over the last two decades. Some attention also needs to be given to the synergies and interactions between mitigation efforts and adaptation goals. Considering the two climate change responses in isolation may lead to trade-offs and maladaptations, undermining the response of the agricultural sector as a whole. Specifically, ways in which a more immediate greenhouse gas mitigation agenda will influence adaptive capacity, and conversely, how adaptation actions may affect mitigation efforts. The project used input from industry experts to gain insights into priority actions in relation to adapting to climate change. This information suggested that adaptation decisions are a low priority relative to more immediate business re-structuring in the face of changing market conditions. To the extent that climate change figures in decisions, it is the more immediate mitigation obligations that are gradually being factored in as potential business costs. Adaptations may be considered only to the extent that: a) climate scenarios and damage information can be made more specific; and b) that these are incidental to, or convergent with, improving financial rates of return. To date there is little evidence suggesting a clear case for the latter. Information from the same experts also assisted in drawing up a range of potential adaptation options and their costs. Qualitative and quantitative surveys were then used to identify options and how these are ranked by industry participants. This report can be viewed as a contribution to the national requirement to develop an adaptation economic analysis (AEA) within the context of the Climate Change Risk Assessment (CCRA) (See Watkiss et al 2009). This exercise presents a first attempt to integrate impact and valuation information as a basis of deciding whether livestock impacts are significant and where these impacts fit within (agricultural) sector and national priorities. SID 5 (Rev. 3/06) Page 4 of 24 Project Report to Defra 8. As a guide this report should be no longer than 20 sides of A4. This report is to provide Defra with details of the outputs of the research project for internal purposes; to meet the terms of the contract; and to allow Defra to publish details of the outputs to meet Environmental Information Regulation or Freedom of Information obligations. This short report to Defra does not preclude contractors from also seeking to publish a full, formal scientific report/paper in an appropriate scientific or other journal/publication. Indeed, Defra actively encourages such publications as part of the contract terms. The report to Defra should include: the scientific objectives as set out in the contract; the extent to which the objectives set out in the contract have been met; details of methods used and the results obtained, including statistical analysis (if appropriate); a discussion of the results and their reliability; the main implications of the findings; possible future work; and any action resulting from the research (e.g. IP, Knowledge Transfer). SID 5 (Rev. 3/06) Page 5 of 24 Climate change impacts on the livestock sector 1. Introduction This report considers the issue of climate change adaptation as it applies to the UK livestock sector comprising the beef, dairy, sheep, and poultry industries. Climate change has climbed steadily up the list of government priorities with the Stern Review (2006) providing a compelling economic case for advancing spending on mitigation. Climate projections from the Intergovernmental Panel on Climate Change (IPCC) indicate warming trajectories of global temperature ranges between 1.4 and 5.8ºC by 2100. There is considerable uncertainty attached to these projections, as well as to the expected impacts and responses to them. While the EU has set a target of not exceeding a 2 ºC increase, we believe the possibility that this target will not be met must also be considered. The objective of this project was to predict the impact of climate change on the UK livestock industry and to assess efficient adaptation. The emphasis of this project is on gaining an understanding of the nature of the risks that might arise to the public interest, their extent and their value, and the policy interventions that are then required. The specific objectives of the project were: (i) Carry out a review to estimate future livestock numbers and location; (ii) Develop a range of climate scenarios; (iii) Model changes to grassland/forage production arising from climate change; (iv) Develop an impacts inventory across key livestock species; (v) Value the impacts endpoints in monetary terms; (vi) Develop an adaptations inventory; (vii) Carry out a cost-benefit appraisal of adaptation plans; (viii) Appraise the distributional implications of efficient adaptation plans; (ix) Provide recommendations on optimal adaptation in the UK livestock sector; and (x) Carry out reporting and communications. We feel we have addressed and largely met all the objectives specified with the exception of objectives (vii) and (viii), which entail a definitive cost-benefit analysis of adaptation plans (vii) and an appraisal of the distributional impacts of undertaking the adaptations that are deemed to be economically efficient (viii). As this project has progressed, it has become apparent that conventional cost-benefit appraisal is less appropriate for judging investment options where: a) the impact endpoints are biologically complex and therefore difficult to value; b) where there is high uncertainty in terms of impacts; c) the time horizon is potentially greater than 30 years; d) where periodic learning is likely to require a flexible approach to investment decision and a need to be adaptive to change with new technologies. These conditions are recognised in the proposal for the Climate Change Risk Assessment, which proposes a periodic review of the information Agriculture is both affected by climate impacts as well as being a net contributor to climate change through emissions of greenhouse gases (GHGs), particularly methane and nitrous oxide. The agricultural sector can also offer a range of cost-effective mitigation options (for reducing methane and nitrous oxide) in livestock production practices such as nutritional management and waste disposal, but this is beyond the scope of this report, which focuses on adapting to the impacts of climate change. In policy terms, mitigation has until now taken precedence over adaptation, but there is growing recognition that some degree of climate change is now inevitable and hence the importance of an effective adaptation response, as well as consideration of the synergies between adaptation and mitigation. Due to weather dependence, agriculture is arguably the most vulnerable sector regarding the effects of climate change in the UK. This is important because while the conventional economic contribution of the sector may be small, its role in the provision of public goods 1 (e.g. ecosystem goods and services) is significant. How agriculture adapts to maintain productivity and a strong resilient sector, and how this in turn affects the provision of public goods, potentially have wider consequences for social well being. The impacts need to be factored into any public policy response and associated investment decisions. Adaptation is therefore an important public policy priority. Adaptation policy differs from mitigation policy for several reasons. The first is that although climate science is becoming more categorical in terms of the relationships between greenhouse gas concentrations and dangerous climate change, there is still much uncertainty about global scenarios on emissions and the downscaled consequences of climate impacts at regional and local scales. This uncertainty does not affect promoting efficient policies to meet mitigation targets for compliance with international agreements. That is, mitigation policy decisions do not directly depend on damage outcomes, and can instead be based on an appraisal of where the lowest cost emissions reductions can be found as soon as possible (i.e. a cost -effectiveness appraisal). In contrast, impact uncertainty is much more problematic in relation to decision making on adaptation. Here the effectiveness of options is only identified by some notional ranking of the damages they are helping to avoid. This cost-benefit comparison ideally requires a clear picture of the social return, which is a provided by having a clear forecast of both the private and public costs of inaction. This uncertainty also translates into the absence of any clear policy obligation and/or more discretion on interpreting climate uncertainties and necessary expenditure. 1 Public goods in economic jargon, describes a good that is non excludable and that can be enjoyed by all once it is provided. Agriculture affects many rural public goods, e.g. landscapes, water quality and biodiversity, clean air. SID 5 (Rev. 3/06) Page 6 of 24 Even where costs and benefits are identifiable, it is important to identify the goals and aims of adaptation. While in some cases adaptation may be about preserving the status quo, in other cases an effective adaptation might be to accept that some changes will occur and deciding to live with them. Thus, no action (i.e. living with change is also likely to be a rational strategy in the face of some impacts (e.g. disease incursion) that may prove impossible to contain at low cost. Further, in some private cases, an optimal decision may be to do nothing in the face of uncertain outcomes or even perceived net gains. Agricultural gains (e.g. crop yields) are likely to be a reality for some agricultural producers in the UK, and no action on adaptation may be a short term rational choice. This is a an attractive narrative for many private producers who at the same time are typically unable to make business plans for events beyond the current year, let alone across decades or a century. But gains are unlikely to accrue to all agricultural producers, and the behavioural stance of government must act as a palliative to resulting incentives that will lead the market to under-invest or to delay low cost investment in the face of new evidence on potential longer term costs. This is most important where private decisions might accentuate damage to agricultural public goods. Overcoming this distinct form of market failure presents key challenges in terms of the form of information to influence behaviours and the identification of the best strategy to share the joint cost burden of a socially efficient adaptation strategy. The latter implies the need for a better understanding of both private and social costs and benefits over a range of adaptation measures. Conventional economic appraisal of adaptation is therefore not straightforward, although policy can be informed by an attempt to determine the damage costs of projected warming scenarios. In agriculture, potential adaptation decisions also need to be considered against a backdrop of early mitigation obligations, other sector reforms, and regulations that are changing the environmental in which agriculture operates. For example, beyond or possibly as part of its ‘public good’ role, agriculture is increasingly implicated in national food security. The research reported here aimed to identify and, to the extent possible, appraise the extent of private and public investment required for adaptation in the livestock sector. Livestock production is a significant percentage of agricultural output in the UK, and there is some incentive for private adaptation investments to safeguard productivity (if this is an identified and agreed-on aim of adaptation). Under many warming scenarios, it is also possible to anticipate a number of livestock related impacts that have public good implications (e.g. greenhouse gas emissions, disease spread and the effects of grazing on ecosystems and water quality), which may therefore warrant some level of public intervention to address market failure and to maintain environmental security. Determining the need for public adaptation requires some understanding of both the costs of relevant adaptations and the benefits they bring. Notwithstanding the problems mentioned above, this suggests that some element of cost-benefit analysis ought to be applied to the problem; a comparison between the cost of adaptation investments and the benefit of avoided climate related impacts including extreme events. A rational public adaptation strategy ought therefore to attempt to map out both sides of this comparison. This analysis accounts for the fact that impacts have a time dimension, which has a bearing on how adaptation should be prioritised. In this report we use projected climate information to identify climate change impacts on the UK livestock industry and as a basis for informing an efficient adaptation response. The emphasis of this project is on gaining an understanding of the nature of the risks and trade-offs that might arise to the public interest, their extent and their value, and the policy interventions that are then required. To reach this point, the report considers likely private responses and the costs and benefits of adaptation options. Our analysis is based on the premise that Defra wishes to distinguish between market-led adaptations and those where the market will fail to protect the supply of public goods. In this short report we summarise the findings from the research and discuss the results and their implications. Please refer to the main report for further detail. This short report begins with a background to the characteristics of UK livestock systems, followed by a summary of climate projections relevant for the UK. Responses to climate change are introduced, focusing on adaptation, which is followed by a section on the economics of adaptation under uncertainty. We then introduce the impacts we will consider, which are then described in more detail in individual sections, together with a summary of the methodologies used and the results. An economic cost for some of the impacts is developed in a subsequent section. Following this, possible adaptations are discussed together with our assessment of them in terms of feasibility and robustness against uncertainty. We then discuss implications of the findings together with conclusions and suggestions for further research in the final section. 2. Characteristics of UK livestock systems Livestock production generates more gross revenue than any other single output in UK agriculture. The value of livestock output (i.e. livestock production and products) in 2003 was £9.2 billion, of which £5.9 billion was livestock production. The four major livestock groups (cattle, sheep, pigs and poultry) cover different geographical distributions and so can be expected to be affected differently by shifting temperature and precipitation. SID 5 (Rev. 3/06) Page 7 of 24 Dairying, with 2.1 million dairy cows, is generally concentrated in the lowland grass-growing areas of the west. The average herd size has increased in recent years to 83 cows/herd, with 57% of all cows kept in herds of 100 or more, although the size of the national herd has declined. Most commonly, cows will be housed during the winter and grazed during the summer, with the length of the grazing season dictated by the location’s climate. A minority of farmers house their cows throughout the year. Cows are fed a combination of ensilage forage, mostly grown on the farm, and concentrate feed. The impact of climate change may be to increase the length of the grazing season, but some farmers may opt to reduce vulnerability to weather conditions by adopting a continuous housing system. Changes in climate will also affect the availability of the cereals and other crops that make up the concentrate portion of the diet. Farmers may investigate the possibility of breeding cows for specific farming systems and conditions, or using another breed of dairy cow. The national beef cattle herd numbers 1.7 million in 2009. Suckler cows are either a specialised continental or British beef breed or a cross between dairy and beef breeds. Suckler cows are found in both the lowlands and the uplands. Traditional systems produce finished cattle from grass with minimal concentrate feed at 24 months of age. These systems continue on the poorer quality land but there has been a gradual change to shorter indoor finishing systems elsewhere requiring the use of higher levels of concentrate feed (Renwick and Reader, 2004). As for dairy cattle, changes in climate will affect the housing systems used and the type of forage and feed-crops that can be grown or purchased. There are approximately 18 million breeding ewes in the UK with sheep on about 84,000 farms. The diverse geography of the UK has resulted in a number of different sheep systems. A stratified system exists in broad terms, whereby specialised hill breeds are kept in mountain and upland areas and first-cross ewes of these breeds are mated to specialised meat breeds to produce lambs for market. The hill breeds, such as Swaledale and Scottish Blackface, are very hardy, surviving on poor land and lambing outdoors, whereas the specialised meat breeds, such as Suffolk and Texel, are often lambed indoors and perform best when supplementary concentrate feed is provided. Meat is the primary product, with wool representing only about 3% of output and falling (Renwick & Reader, 2004). Climate change may alter the grazing ranges of sheep across the country and the breed of sheep used in each type of system. Increased international competition in the intensive pig and poultry sectors has placed downward pressure on prices, in the face of rising costs of production associated with increased commitment to animal welfare and food safety. Pig and poultry production has become increasingly specialised. Smaller producers have gone out of business in the face of falling or variable market prices whilst remaining units have tended to get larger. Welfare considerations have had a significant effect on production. In the pig sector, total pig numbers fell by 9.8% in 2001, although the breeding herd fell by only 2%. There has also been a distinct trend towards outdoor pig production. In poultry, there has been a rapid rise in the number of table birds with a corresponding decline in the laying flock, and the popularity of free-range systems continues to increase (Renwick & Reader, 2004). For flocks and herds that are housed, the need to provide adequate climate control within the housing will be a major issue as the British climate warms. As for the other species, sourcing of appropriate feeds may also be an issue. 3. Climate change projections for the UK The current working scenarios of climate change impacts for the UK are provided by UKCIP, known as UKCIP02 (Hulme et al., 2002). They provide four alternative descriptions of how the UK climate might evolve over the course of this century. Differences between scenarios result from uncertainty regarding future trends and behaviour and how these might affect future global emissions of greenhouse gases. The latest climate change scenarios for the UK were released in June 2009. The methodology used for UKCP09 differs fundamentally from that used for UKCIP02, which makes a direct comparison between the two difficult, and therefore an estimate of the effects of these changed scenarios are difficult to make. The analysis in this report uses the UKCIP02 medium-high scenario as the basis for assessing the impacts. Impacts of climate change on agriculture come about through changes in variability, seasonality, changes in mean precipitation and thus water availability. These variables in turn affect grassland productivity and the emergence of new pathogens and diseases. The greatest impacts of climate change in the short term are likely to be from extreme weather events such as floods, droughts, heat waves and windstorms. These are expected in increase in both frequency and intensity; they are more difficult to map and therefore more difficult to adapt to than gradual warming. The scenarios provide information at 50x50km grid squares, and highlight (among other things) the regional variation of impacts in the UK. This variation indicates that adaptation will also need to be local and appropriate to the impacts experienced. A one-size-fits-all approach to adaptation is not likely to be very constructive. 4. Livestock and Climate Change Impacts The impacts of climate change on livestock systems will be spatially and temporally diverse. Broad categories of impacts include drought and variations in the length of growing seasons for grasses and forage crops. Further, altered ranges for pathogens and pests are likely to increase overall disease burdens and present associated challenges in terms of animal welfare impacts. On a longer time scale, livestock producers are likely to need to contend with a higher incidence of extreme events such as fluvial and pluvial flooding. It is possible to distinguish between direct and indirect effects of climate on livestock production. Both forms of impact can be addressed by SID 5 (Rev. 3/06) Page 8 of 24 a range of adaptations that in turn imply further impacts that may be external to the agent undertaking the adaptation. This ancillary adaptation impact is of interest in this project, although its identification clearly requires a robust scenario of what private adaptation will take place. Considerable research has been carried out on the primary effects and interactions of climate change on plant growth and yield (Easterling et al., 2007). Less research has been carried out on the impacts of climate change on pastures and livestock (Easterling et al., 2007). A number of studies have been carried out assessing the impact of past extreme weather events (particularly heat waves) on the agricultural sector in the UK and Europe (Orson, 1996; Subak, 1997; COPA COGECA 2003., Ciais et al., 2005; Hunt et al., 2006; European Commission, 2009). These provide useful indicators of what might occur in the future. The direct effects on livestock include those of animal health and welfare, growth and reproduction, while the indirect effects are due to the impact of climate change on the productivity of pastures and forage crops. A further more complex indirect impact occurs via the impacts of climate on the economic cost of inputs e.g. feedstocks that are imported into UK systems from global markets. These effects are not considered further in this report, which focuses primarily on the direct effects on animal health and welfare and indirect impacts via grasslands. 5. Climate change responses: mitigation and adaptation Two distinct but related responses strategies have been adopted in the face of climate change. To prevent the worst impacts of climate change and to minimise future impacts, mitigation strategies have been developed, which aim to reduce the emissions of greenhouse gases (GHGs) into the atmosphere. Adaptation on the other hand, is concerned with coping with the unavoidable changes that will occur, even if mitigation is successful at minimising or avoiding the worst impacts. Mitigation obligations are becoming more clearly defined by national compliance with externally determined emissions reductions. In contrast, there is no similar obligation to adapt although Under the Climate Change Act (2008) the UK government has made provision for a periodic risk assessment that will inform on priorities for intervention. There is also some recognition of the links between adaptation and mitigation actions. Adaptation was previously regarded as ‘giving-up’ on mitigation and accepting that greenhouse gas abatement targets would not be met. However, due to historical emissions and inertia in the climate system, the world is now committed to a certain degree of change, regardless of the level of mitigation, and impacts are already being experienced. Both mitigation and adaptation are important and complementary tools for tackling climate change, and in some areas the distinction between the two is less clear. This report however is concerned primarily with adaptation strategies and mitigation will not be discussed unless it relates directly to adaptation. Adaptation has been defined broadly as the ‘adjustment in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities’ (IPCC, 2001). Adaptation can focus either on managing the impacts of the climate-related hazard, or reducing the vulnerability of the elements at risk, or both. Adaptations can also be defined as public or private, depending on the actors involved. Planned adaptations tend to be made in the public sector, but not exclusively. Overall, adaptation is an ongoing process, and as the climate continues changing, adaptation must continue evolving. We are unlikely to reach a state where we are “adapted” (or “climate-proofed”); indeed, we are not adapted to the current climate, as evidenced by continual damage associated with flooding, droughts and heat waves. The level of damage we are prepared to accept is a societal decision, and will vary spatially and temporally. As mentioned, there is a public role in making this clear and in delineating responsibilities for resulting costs, and fostering the development of better adaptive capacity; the ability of individuals, systems, or society to adapt to changes in climate. 6. Cost-benefit analysis (CBA) under uncertainty Uncertainty presents a major challenge to adaptation. The benefits of adaptation are uncertain in terms of when (if) the benefits (avoided damages) will occur, when they will occur, and how large they will be. On the other hand, the costs of adaptation are relatively observable, may be high, and are likely to need to be paid now. Watkiss et al. (2009) suggest that these conditions handicap the use of traditional cost-benefit analysis, which is typically dependent on short term horizons and observable cost and benefit streams. In contrast, for adaptation investments much of the necessary information will not be available. In these cases techniques for decisionmaking under uncertainty must be employed. UKCIP (Willows & Connell (2003); Metroeconomica (2004)) offer guidelines for carrying out these techniques. There are clearly many challenges in presenting an accurate ex ante cost-benefit appraisal of livestock sector adaptation. Adaptation decisions need to be robust in the face of uncertainty, that is, they should be relevant for a range of future climate impacts. Ideally actions will create win-win (no regrets) situations, in terms of decreasing vulnerability to current variability while simultaneously increasing farm profitability. Actions that increase the adaptive capacity of the sector generally, rather than specific actions in anticipation of uncertain events are likely to be more cost-effective. Actions that allow flexibility for further action or reversibility when impacts become more certain are also important. SID 5 (Rev. 3/06) Page 9 of 24 This report divides the impact analysis into the following sections: i) Grassland potential under altered climatic conditions and the effects on the length of grazing periods; ii) Alternative private productivity and waste generation associated with increased grassland consumption (set out what externalities are); iii) Welfare from infield, housed and transportation conditions; and iv) Disease. Consideration of i) and ii) provides a basis for considering external costs in terms of greenhouse gas emissions, water quality impacts and the likely impacts on biodiversity. However, the extent of this analysis remains largely qualitative. Each impact category uses climate data differently; categories i-iii) are informed by downscaled climate information and the impact of extreme events. Uncertainty in relation to disease impacts means that this section is largely qualitative. More details can be found in the Main Report. 7. Impacts of climate change on grazing systems Grassland is the main productive driver of ruminant livestock systems and is sensitive to climate and hence any changes in the climatic conditions. The climate change scenarios will determine the productive potential for grassland systems of the future and so will drive any change in ruminant livestock distribution and production. The effects of climate change on grassland systems are potentially complex with effects on forage yields and quality, which may affect the relative suitability of grasses and legumes and their utilisation. Climate change is likely to have impacts on the length of the growing and grazing seasons and animal output, which will have consequences for environmental pollution. Changes in fertiliser strategies resulting from changes in growth and utilisation patterns, and the possibility of planting shelter / shade belts will have implications for biodiversity. The objective of this section is to explore the response of ruminant production from different regions within the UK to climate change. The impacts for the UKCIP medium high scenario for 2020, 2050 and 2080 are explored. To assess the climate impact on farming systems an assessment of how grassland production would be affected is required. A grassland model was used to predict the changes in forage production and length of grazing season for dairy, beef and sheep systems in the UK. The output from this model was then used as the input to the farm system models, and the models of environmental pollution, which are described in section 8. These simulations were based on the means of 50 simulations per region per time point (i.e. baseline, 2020, 2050 and 2080) when grass cuts would occur (day of the year), the dry matter yield (DMY) of the grass, the grass quality characteristics; namely digestibility (D), crude protein (CP) content and the variation in these characteristics as indicated by their standard deviations. The effects of climate change proper on farms that rely on grass production will, in almost all systems and regions, lead to a potentially longer grazing period. The predicted increase in annual grazing period between the baseline and 2080 differs between regions and varies from 3.2 weeks on dairy farms (range: 1 to 5 weeks), to 1.8 weeks on beef farms (range:-2 to +5 weeks) and 2.9 weeks on sheep farms (range: 1 to 7 weeks). In most regions this will allow animals to be kept outdoors for longer and means a potential reduction in the proportion of the year that animals require housing and/or access to conserved forages. Proportionally, the changes in length of the grazing season are generally more substantial in northerly than in southerly regions. Climate change is predicted to also lead to an increase in annual usable grass DMY per hectare between the baseline and 2080. This increase differs between regions and varies from +1.2 tonnes on dairy farms (range: 0.4 to 2.4 tonnes), to 1.5 tonnes on beef farms (range: 1.0 to 2.3 tonnes) and 2.3 tonnes on sheep farms (range: 1.7 to 2.9 tonnes). Proportionately, the increase is predicted to be strongest on sheep farms, and the increase tends to be higher in northerly compared to southerly regions on all farm types. The trend of increasing DMY/ha is expected to be strengthened by a likely increase in fertiliser-N application with more favourable climatic growing conditions. This would allow for an even more pronounced increase in stocking rate, i.e. a larger herd/flock size for a given farm acreage or a reduction in farm acreage for a given herd/flock size. For dairy farms, the effects of climate change on predicted changes in stocking rate, concentrate use and N excess per hectare is likely to be limited, or reversed, as a result of increases in feed intake per cow, especially in the form of concentrates, that will likely be associated with expected increases in milk yield per animal. 8. Impacts of climate change on environmental pollution losses The predicted increases in grass production and the lengthening of the grazing season will lead to changes in the farming system, its economic performance and the generation of waste including nitrogen (N) losses. However, there are competing factors regulating this process. First, there are different processes competing for the available N in the soil, and second, the changes in climate will influence the soil water conditions, which regulate the oxidative processes. The changes in N availability will also have an influence on plant biodiversity. The objective of this section is to explore the impact of climate change on the potential environmental pollution from ruminant production for the 10 RDP regions in the UK. The knock-on effects for biodiversity and the economic performance of the farming systems for the dairy sector are also explored. The predictions of grass production for this exercise were taken from the grassland model used in the previous section. The effect/impact of 3 future climatic scenarios on the farm nutrient flows and losses of nitrogen (N) and C (methane: CH4) were assessed for 3 typical farming systems (beef, sheep, dairy) in the UK. Ten Regional Development Programme (RDP) areas were selected and used to cover the UK as representative case study SID 5 (Rev. 3/06) Page 10 of 24 areas. The baseline systems for beef and sheep and dairy farming follow information from DEFRA project NT2511. For the baseline dairy farm, a typical grazing scenario was assumed. As expected, changing climatic conditions greatly affected N losses. A combination of two factors were responsible for controlling such losses. First, different processes compete for the available N in the soil, and second, soil water conditions greatly regulate the oxidative level of the N lost (e.g. as NOx, N2O, N2). The most important factors affecting the loss of available N are the increase in plant production per unit of both land area (ha) and kg of animal product (data not shown). The increasing plant N uptake in future climate change scenarios causes a reduction in soil inorganic N available for the rest of the competing processes leading to loss of N to the wider environment. The form of N that is lost via denitrification and nitrification is greatly regulated by soil water content. The rate of NO emission is greater with drier soils and decreases as the soil moisture content approaches field capacity. As the soil atmosphere becomes more O2-limited, so, N2O and N2 emissions increase while emissions of NO decrease. Evidence suggests that the optimum soil % water filled pore space (WFPS) values for maximum NO emissions were between 30% and 40% WFPS (e.g. del Prado et al., 2006). Nitrous oxide emissions increase to a level where simultaneous denitrification and nitrification are at their maximum (75% WFPS). Above this soil water content, denitrification is the main process producing N 2O and, as the soil became more anaerobic, emissions of N2 became greater than those of N2O. Nitrate leaching losses (only shown for dairy systems) were affected by factors that regulate the competition for the available N in the soil during the period previous to autumn-winter drainage season. Among these factors, increasing plant N uptake would result in a decrease in leaching but decreasing denitrification losses through disfavouring soil anaerobic conditions would lead to an increase in soil leachable N for the autumn-winter drainage season. Smaller drainage volumes in future scenarios would result in a reduced amount of total N being leached and an increase in the concentration of that N actually leached. In this study, as land area required was adjusted to the amount of food produced, assuming a constant product (e.g. total meat and milk) resulted in greater NO3 leaching per hectare but fewer per unit of product (or total) (data not shown). Most CH4 emissions were caused by animal enteric fermentation. Although CH4 emissions from dung deposition may have varied from region to region and time-slices, they are minor in comparison to enteric fermentation and would not influence the overall CH4 emission at the farm level. Methane emissions per unit hectare were greatly affected by the number of hectares required to support the level of production. Methane output per unit of product was inversely related to %N content as more protein in the diet generally increased the amount of kg of meat per unit of DM ingested by the animal. This study did not account for the potential changes in animal energy use in future time-slice scenarios. The quality of diet was not included as a factor affecting CH 4 emissions from enteric fermentation. Although there is some evidence that some factors (e.g. fat content) may have a strong effect on CH4 output from enteric fermentation, herbage parameters simulated by the SAC models did not include those needed to estimate the potential effect on rumen CH4 generation. As Glendining et al. (2009) indicated for sustainability-related studies, land area should be also included in any assessment. Land area was included in our study, but an improved methodology would require costing changes in land requirement to produce the same amount of food. Economically-based policies may in turn be in serious conflict with those more related to environmental risks due to this mismatch of scale relevance. The effectiveness of mitigation methods to decrease any particular pollutant will depend for example on the farmer or land user´s response to any potential economic benefits or penalties due to implementation and in relation to market dynamics. Potential co-benefits of increasing the efficiency of N plant use included greater opportunities for improving the botanical diversity. This needs further testing as the temporal variation of inorganic N flows in the soil may have different implications for different plant species. The soil quality component in the SIMSDAIRY modelling framework refers only to soil structure and some general aspects of chemical fertility. Positive changes were observed for future climate change scenarios possibly due to a decrease in rain and thereby a decrease in soil poaching and erosion by grazing animals. 9. Climate impacts on welfare: Expert review, transport and thermal challenges . This section details the impact of, and potential adaptations to, climate change in the UK on the welfare of animals. This will assess “thermal stress” that livestock will face in a changing climate, including quantitative impacts on selected production and fitness traits, and review the impacts of climate change on the welfare of animals in transport. Impacts of climate change on livestock welfare Weather and climate can directly and indirectly determine the efficiency of livestock production and the welfare of livestock (Starr, 1980). Examples of direct influences include the heat balance of livestock and extreme meteorological events. Indirect influences are disease and parasites (section 10). Excessive heat or cold SID 5 (Rev. 3/06) Page 11 of 24 increases the metabolic energy required to maintain the animal’s body temperature thus reducing the energy available for productivity and maintaining functional fitness of the animal. This requires an understanding of how environmental stressors (e.g., temperature, humidity, thermal, air speed) can directly and adversely affect animal performance, health, and well-being when coping capabilities of the animals are exceeded. The indirect consequences of weather episodes, such as feed quality and availability, must also be recognised, see section 7. All animals have a range of ambient environmental temperatures termed the thermoneutral zone, which is the range of temperatures that are conducive to health and performance. Many studies have explored the impact on livestock production and fitness traits of moving outside this zone and this type of information can be used to surmise the impact of climate change on UK livestock. This section will focus mainly on the impacts on livestock of moving outside the thermoneutral zone. Setting aside the obvious impact of extreme event, UKCIP02 predicts that there will be stronger winds and higher rainfall in the west of the country in springtime, and this is where a high proportion of Great Britain’s dairy and beef cattle are farmed. This may have welfare consequences for animals as they begin to feel cold in wet and windy conditions. The lower critical temperature (LCT) is the point where the animal must increase its metabolic heat production to maintain homeothermy and therefore animals start to experience cold stress. The LCT of an individual animal is affected by its body size, condition score, metabolic state and hair cover. The predicted warmer summers coupled with more favourable grass growing conditions in general will allow grazing animals the opportunity to be at grass for longer period and thus more exposed to the changing climate. The upper critical temperature of the thermo neutral zone is the point at which heat stress effects begin to affect the animal. Heat stress can be simply defined as the point where the cow cannot dissipate an adequate quantity of heat to maintain body thermal balance. Impacts of heat stress on production, reproduction, health (including mortality), welfare and behaviour in many livestock species have be studied (review: Hahn et al., 2003). Climate predictions for Great Britain show that on average the climate will become warmer. However, there are many regional and temporal variations to this scenario. Animals are affected by cold weather at the lower limit of their thermo neutral zone. The ambient temperature at which animals begin to feel the cold is higher in wet and windy conditions. With respect to cold stress, the areas that had high densities of beef cattle were identified and predicted windspeed and air temperatures taken from UKCIP02. The NRC formulae were used to calculate the LCT of the types of animals that are likely to be at pasture during the spring months (March-May) (NRC, 2000). The LCT calculations take into account heat loss vs heat production (which is affected by the bodyweight, lactation or growing state of the animals, metabolisable energy intake, hide depth and coat depth), ambient windspeed and degree of wetness/muddiness of the coat. For beef cattle, young stock, and both autumn- and spring-calving cows of large and small breeds were considered. As temperatures rise and grass growth increases, it is likely that animals will be at pasture during the spring period of March-May. In reality, when conditions are below the LCT, beef cattle are likely to lose weight as they use body reserves to produce heat and grazing is reduced as they often huddle with others or seek shelter. With respect to heat stress, the methodology of St-Pierre et al. (2003) will be employed for estimating the impact of heat stress on production and fitness traits in UK livestock under the medium-high climate change scenario for 2020, 2050 and 2080 (UKCIP02). The environmental conditions that induce heat stress can be calculated using the temperature humidity index (THI), which combines the ambient temperature and humidity. UKCIP02 monthly 50km2 weather data were taken for the base period (1961-1990), 2020s, 2050s and 2080s. From these data, the THI was calculated for each square in each time period. To account for the variation across a day (within a month), the maximum THI was calculated using the maximum monthly temperature and the minimum THI was calculated using the minimum monthly temperature. Each class of animal was assigned a THI threshold above which that class of animal began to suffer heat stress. With regards to dairy enterprise, generally, heat stress did not dramatically impact on biological performance until 2050 and was inevitability, greatest in 2080. The impacts on biological performance were greatest in the South and South East of England. There was no impact of heat stress on biological performance of young dairy animals (up to 1 year old). The impact on dairy heifers (1 to 2 years old) was small, with this class of animals experiencing heat stress for an average of 262 hours per year by 2080. The level and duration of heat stress in dairy heifers was predicted to reduce livestock gain by an average 180 g/animal/year and result in approximately 0.7 heifers in 1000 dying from heat stress by 2080. Dairy cows have a higher level of metabolic activity than younger dairy animals, in that they are producing high levels of milk, maintaining pregnancy as well as maintaining immune function. This means that their thermo neutral zone is smaller than other categories of livestock. Overall, dairy cows are predicted to experience 111 hours of heat stress per year in 2050, which rises to 420 hours by 2080. The duration of heat stress in 2080 ranges from 111 hours/year (North East) to 852 hours/year (South East). Milk yield was predicted to reduced 13.2 kg/cow/year (0 – 42 kg) in 2080 due to the impact of heat stress. Reproductive performance of dairy cows was also predicted to get worse, with the numbers of days open increasing by 2 days/cow/year (0.05 – 5.28 days) by 2080. Reproductive problems are one of the main reasons for involuntary culling in the dairy herd and therefore, in regions where the impact of heat SID 5 (Rev. 3/06) Page 12 of 24 stress is large, the rate of involuntary culling may increase. Increasing the level of heat stress in dairy cattle over time is predicted to have an unfavourable effect of livestock survival, in that approximately 2.3 cows in 1000 are predicted to die due to heat stress in 2080. The impact of heat stress on beef cows over the time periods studied are relatively small with only beef cows in the East of England and the South East experiencing a small amount of heat stress with an average of 55.5 hours/cow/year. This has little or no impact on the biological traits studied. The results for the impact of heat stress in beef finishers and beef cows for 2020 and 2050 are shown in Appendix 4 of the main report, although only a proportion of regions are predicted to result in a scenario where beef animals are suffering from heat stress. Overall, beef animals in England and Wales are predicted to be experiencing a total of 240 hours of heat stress per year, nearly half the duration that dairy cows experience. The impact of this heat stress will affect production by, on average, 270 g of live weight gain/animal/year. Although small, this would be cumulative across the herd and in the South East, for example, is predicted to be 710 g. The impact of heat stress of the survival of beef animals is lower than seen for dairy cattle with a relatively consistent prediction across regions of 0.8 animals out of 1000 dying as a result of heat stress per annum. Monogastric livestock will suffer heat stress, to some extent, by 2080. The duration of heat stress that animals will undergo in a year by 2080 is 92 hours for sows, 214 for growing pigs and 420 for laying hens. The difference in the duration of heat stress reflects the difference between these classes of animals in terms of their metabolic rate with layers and their systems of production being highly efficient with a high turnover of feed into product. The overall impacts of heat stress differ across livestock class as well. The impact of heat stress on production traits is greatest in the layers, followed by the growing/finishing pigs, with an average of reduction of 24 g of egg/bird/year in layers and 425 g reduction in live weight gain/animal/year in pigs. The impact of heat stress on survival varied to a lesser degree across species with 1, 0.7 and 1.2 animals out of 1000 dying as a result of heat stress in sows, growing pigs and layers respectively. These results highlight a number of factors. First, there is considerable regional variation. The most affected region for all animal types is the South East, which is projected to see the greatest climate change impacts. Scotland is not expected to experience any losses due to mortality from heat stress in any of the time periods. Impacts start occurring predominantly from the East Midlands south. Many of the sectors will not be affected until the 2080s, however some, notably dairy and poultry, begin to see some losses as early as 2020, and in these two sectors only Scotland is unaffected by the 2080s. Impacts of climate change on livestock in transport. Animal transportation (by road, sea and air) constitutes one of the most important “acute” threats to animal welfare and productivity in commercial animal production. Good work over many weeks or months, in terms of animal housing and husbandry, can be undone in a matter of hours or days if transportation stress is excessive. In addition to the risks associated with animal handling, loading and unloading and the vibrations and accelerations experienced by animals in transit, the “on-board” thermal microenvironment represents a major source of transport stress and is the cause of increased mortalities, poor welfare, reduced production efficiency and product quality and decreased performance in livestock after completion of the journeys. As external conditions become warmer or cooler then the risks of the transported animals being subject to heat stress or cold stress increases and this situation may be exacerbated by poor vehicle ventilation regimes. The climate change scenario of most concern in animal transport is a major alteration in the incidence of “extreme events” and increased frequency of extreme episodes. Thus very high temperature conditions or very low temperatures, even over a one day period, will cause problems for animal transportation. Extended periods of elevated temperatures (or very low temperatures) will constitute a threat to animal welfare (and indeed survival in transit) even on relatively short journeys to slaughter (up to 12 hours duration). It therefore must be emphasised that whilst it is obvious that animal transport is one component of the animal production industry which is particularly vulnerable to the effects of climate change, specifically elevated mean ambient temperature and an increased incidence of potential heat stress episodes or extreme events there is little available data that allows accurate prediction of the effects upon the welfare of the animal, the losses to the industry and the costs of adaptations. It thus is essential that existing predictive models of livestock responses (Mitchell & Kettlewell 1998; Turnpenny et al. 2000a and b; Fiahlo et al. 2004; Mitchell 2006) to thermal loads and which allow assessment of acceptable ranges for thermal conditions in transit are integrated with climate change predictive models (e.g. similar to those employed by Parsons et al., 2001; Turnpenny et al., 2001) and economic models (e.g. St-Pierre et al. 2003) to facilitate a much more comprehensive assessment of the climate change impacts upon the welfare and production efficiency of livestock in the UK. Animal transport may constitute only a small temporal component of an animal production cycle but represents a period of very high risk to animal welfare and production efficiency. Transport is also a process which is extremely sensitive to the climate change effects and even small increases in mean temperatures and in the frequency of episodes of elevated temperature (extreme events) will impose excessive heat loads on animals in transit resulting in compromised welfare, increased losses and mortalities and SID 5 (Rev. 3/06) Page 13 of 24 may economic losses. The accurate and reliable predictive modelling of such effects is vital for the provision of a sound scientific basis for and precise definition of sound strategies and adaptations for the various climate change scenarios. 10. Impacts of climate change of disease risk to livestock Many pathogens and parasites of livestock have lifecycle stages, vectors or intermediate hosts that are sensitive to climate and thus it might be expected that climate change would have fundamental and far reaching impacts on their epidemiology. This section considers the likely impacts of climate change on animal health. There is much uncertainty about the likely climate-induced impacts of disease and it is impossible to undertake a full integrated valuation of the likely climate-incidence of diseases. This section does scope the categories of disease risks but draws on illustrative examples to provide a preliminary health impact and likely adaptation needs. Many livestock parasites and pathogens are transmitted via the environment and are thus exposed to and affected by climate. Exposure to the sun (UV radiation) affects the survival of bacterial pathogens (e.g. bovine tuberculosis & e-coli O157) in the environment. Similarly, the rates of development of gastrointestinal nematode parasites (from eggs in faeces to infective stage larvae on pasture) are temperature and humidity regulated and often highly sensitive to desiccation. There is the potential for an increase in many livestock pest and disease problems due to less ‘winter kill’ and longer disease seasons as they can persist in the environment for greater proportions of the year. Both increases in the number of generations of parasites and treatments for parasitism, can increase the risk of development of resistance to drugs and pesticides, further exacerbating the direct effects of climate change. However, despite these well known effects of climate on parasite and pathogen survival in the environment, todate there is no agreement between leading researchers on whether, at the global scale, the amount of disease will change (Lafferty, 2009a; 2009b). A recent series of discussion papers highlighted the varying opinions of researchers on the effects of climate change on disease risk (See Lafferty 2009a and subsequent forum in Ecology, 2009, 90, No4, Introduced by Wilson 2009). Whilst there was much disagreement on how climate change will affect the amount of disease, Wilson, (2009) summarised the areas where there was agreement: (i) climate change is altering the geographical distribution and incidence of (at least some) infectious diseases and will continue to do so; (ii) detecting a climate signal in disease-range changes is likely to be difficult because of the influences of other confounding factors, such as changes in land use, socioeconomic factors, vector control strategies, and health care practices; (iii) better data sets and modelling approaches are required to be able to make robust predictions of the impacts of climate change on disease dynamics; and (iv) whether or not specific infectious diseases expand or contract their geographical ranges will depend not only on extrinsic factors (e.g. climate change), but also intrinsic factors (such as immunity, phenotypic plasticity, and evolution). It is with this background of accepted unknowns and uncertainty that we consider the potential impacts of climate change on livestock disease risk in the UK. What we do know from past experience is that episodes of certain livestock diseases can lead to heavy economic impacts within and beyond the sector. As an adaptation strategy, the limited evidence suggests that disease surveillance can deliver high social rates of return and is therefore a prudent capacity investment. Changing management in response to a changing climate As climate changes, farm management practices are also likely to change as farmers adapt to the new conditions. Livestock management drives the contact processes between hosts (livestock and wildlife) and parasites whether through rates of population mixing (i.e. risk of direct transmission) or rates of contact with environmental distributions of parasites and pathogens i.e. risk of indirect transmission). Given the damaging potential in some animal diseases, the adaptation imperative is to determine a clear strategy on what diseases to prevent rather than cure. For some endemic diseases this distinction is moot and the emphasis is on how current controls are exacerbated by changing climatic conditions. For non-endemic diseases, a distinction between anticipatory (ex ante) and reactive (ex post) responses needs to be informed by an assessment of which diseases are worth stopping - i.e. some disease risks will be exacerbated by climate change, but their prevention may be economically not worthwhile. While surveillance is likely to be strategy in both cases, recent experience suggests that ex post responses can be very costly involving containment and wider economic and social disruption to the industry and in the countryside). There is therefore a premium on improving anticipatory capacity as a climate change adaptation. Given the current uncertainties in predicting which and when exotic pathogens will reach the UK the costs of such outbreaks are best predicted from previous experience. For example the UK has recently experienced two main threats to the livestock industry from highly infectious diseases that may be used to set bounds on the costs of control. Where disease eradication is required (for trade or health reasons) foot and mouth disease may be used as an estimate of the costs of eradication. Where eradication is not feasible, the vaccination campaign used to control bluetongue may be used as an example. SID 5 (Rev. 3/06) Page 14 of 24 For many infectious diseases a key bottleneck in predicting the future risk to the UK driven by climate change is lack of long term basic epidemiological data. Modelling the effects of climate change on biological systems irrespective of whether it is climate matching models or process based models requires good data for model building and testing. Without data there is limited to no ability to test the predictive power of mathematical models. Given that we are at an early stage in quantifying the impacts of climate change on the livestock industries, we also need to consider early warning systems for disease outbreaks in the UK. For example, the use of fast throughput technologies e.g. arrays to test large numbers of animal samples for multiple pathogens. Statistical modelling (e.g. climate envelope modelling) offers the greatest potential for immediate return in terms of predicting changes in the disease risk posed to UK livestock by climate change. However, to improve our ability to predict changes in the amounts and distributions of infection and thus the associated economic losses to the industry, we must not disregard the complex interaction of intrinsic and extrinsic factors that drive disease transmission in livestock production systems. Process based simulation modelling (e.g. Agent-Based modelling) offers potential insights in to this complexity and ultimately when developed in association with data it offers the potential for improved predictive ability. Such models can be developed to incorporate the explicit role of human agency (ie farmer behaviour) in disease control and spread. In this regard we recognise private and public good costs associated with disease outbreaks and prevalence. Private human behaviours (i.e. management choices) are implicated in the external costs of livestock disease transmission. Increased surveillance as an adaptation does not obviate strategy of changing behavioural incentives through potential cost-sharing arrangements. Climate change adds a further rationale for behavioural change and it is important that its inevitability is emphasised as part of the cost sharing policy message. 11. Estimating the cost of impacts In this section we draw together some of the quantitative evidence on impact costs, with a view to determining the relative significance of likely damages in the sector. We have selected impacts from preceding chapters which have an identifiable cost over a time horizon to 2080. We have not covered all cost categories, for example, we exclude the impacts of extreme events like flooding. Therefore it is not possible to provide an estimate of the total cost of climate change to the livestock sector in the UK. In addition, some of the impacts are likely to be mutually exclusive. At this point we do not account for interaction of impacts and therefore the cost categories are not strictly additive. The analysis distinguishes between private and public costs. Costs may be private (financial) or public (social). Many of the costs (or benefits) identified in this report are private; i.e. they accrue to the individual farmer in the form of change in production. Some of the costs have an external cost, such as mortality arising from heat stress, disease spread or the increased emissions of pollutants to air and water. Private costs are typically valued using market prices to determine losses to producers. We typically assume that these costs are internalised and that there is an incentive to undertake an appropriate adaptation to reduce these costs. Social costs include external impacts beyond the original impact. For example, disease transmission from one farm to another leads to a private cost being incurred beyond the original source of the contagion. Again, such social costs can be quantified with reference to market prices of the damage (i.e. a sick animal). Other social costs are much more problematic (though not impossible) to quantify because they cannot be related to a market price. Animal welfare is an example of a non-market impact that nevertheless has a social value. Only part of this impact will ever show up in actual behaviours such as purchases of welfare-friendly goods, but this does not obviate the existence of preferences for avoidance of poor welfare states. If consumers are notionally willing to pay to avoid such impacts, they can be quantified. Indeed, a range of existing willingness to pay (or stated preference) estimates for welfare are available for crude benefits transfer if necessary. There are obvious synergies between the ways in which private costs and adaptations can affect external costs and, in addition to the absolute value of damage costs this has a bearing on which adaptations should be prioritised. As an example disease surveillance is likely to deliver high benefit cost ratios. For a given risk of incursion and spread, several diseases can lead to high damage costs relative to the cost of surveillance expenditures that can reduce risks. The same expenditures can also be successful for detecting other endemic disease problems that affect animal efficiency. While these productivity issues may well be private, inefficient animals are typically more polluting in terms of waste generation. For detail on the costing methodology, please refer to the main report. For the dairy and beef sectors respectively, climate change may actually lead to a saving in forage costs to the dairy sector of £42m and £5m respectively by 2080 (present value). This is however less than a one percent change from base situation. Additionally, these savings may be offset by the impact of extreme events that may adversely affect grazing systems. The sheep sector is predicted to save almost 3% (£90m between now and 2080). Clearly, the saving in forage costs resulting from a changing climate is greatest in the sheep sector; however a three percent saving over 70 years is not particularly significant. However, it does highlight that the impacts of climate change, particularly in the UK, are not all likely to be negative. SID 5 (Rev. 3/06) Page 15 of 24 Both greenhouse gases and eutrophication are social costs and are currently an externality of agricultural production. If agriculture were included in an emissions trading scheme then the change in emissions becomes a private cost (i.e. a permit price) to be borne by the producer. Alternatively the social cost of GHG emissions can be calculated using the social price of carbon (SPC). Either way, the results suggest that on balance a reduction in GHG can be expected. There was a suggestion that eutrophication potential could worsen, though we do not undertake an extensive valuation of these effects due to data limitations in linking the location of increased loading and receiving waters. With the exception of the south-west in 2020, and the north-east in 2080, the net farm income for dairy farms is expected to increase by up to 8%. The economic results were simulated by assuming that all input values would not change with geopolitical scenario and site. Due to this simplification, we did not intend to produce a robust assessment of the impact of climate change on the economic returns; however we have used these results as an example of possible differences caused only by climatic changes in different areas of the UK In the dairy herd, heat stress affects mortality, productivity and reproductive capacity of dairy cows, and mortality of dairy heifers. The effect of climate change on the dairy sector varies between regions. Nevertheless the net impact on the dairy sector on the total discounted costs is approximately £11m by 2050 and £33m by 2080, with over 90% of this value being due to mortality of dairy cows. Beef finishing cattle are more affected by heat stress and suffer greater losses from mortality than the older cattle. This is due both to the more intensive production systems involved in finishing cattle, and the energy involved in the growing and finishing phase of the animal’s development. Heat stress also affects the bodyweight gain of finishing cattle. The total (discounted) cost is only around £311k however, which is small in comparison to the losses arising from mortality. Like beef finishing cattle, grower finisher pigs are also likely to experience a loss in body weight gain as a result of heat stress. Only the East and the South East are expected to experience any costs in 2050. By 2080 however, the total discounted cost over the country is over £3 million, which is relatively serious, and more than the cost from mortality. With respect to poultry, heat stress can also result in a reduction in the amount of eggs laid. While most regions experience a loss by the 2080s, the value of this loss is relatively small (in total only around £140k in 2080). It is possible that a loss of this magnitude would simply be accepted by the producers, rather than investing in adaptation. With respect to total losses from mortality by 2020 the costs to the agricultural industry are only around £200k, which is likely to be able to be absorbed by the industry. By 2050 however, the costs have reached over £11m, and by 2080 the costs of mortality alone have risen to over £34m. This is a more serious cost to the agricultural sector, and in addition does not include losses other than mortality, which are discussed earlier. The dairy sector is expected to experience the greatest losses, a combination of the location of much of present dairy farming being in areas projected to experience greater levels of change, together with the value of each dairy cow, which is significant. This indicates that the dairy sector is vulnerable to gradual warming. However, an extreme event, such as prolonged heat wave in a given year, is likely to have a more dramatic effect on biological traits described and therefore costs to the industry increased dramatically for that given year. There are likely to be other costs incurred from other impacts such as other extreme events (droughts and flooding) and increases in disease incidence. On the other hand there may be benefits resulting from a longer growing season and milder winters, as discussed previously It should be emphasised the even under the worst case climate scenarios, the impacts affecting the UK are unlikely to be so significant that agriculture will be severely disturbed. The projections, even for the 2080s, suggest the climate of the UK may become analogous to current climates in major agricultural producing areas in Europe. A greater climate-related impact relevant to the UK, unfortunately beyond the scope of this report, is likely to be the effect on world markets of impacts of climate change in other major agricultural producing areas in the world. Further research would include these impacts as well as likely interactions between all potential impacts to provide a more comprehensive cost estimate. 12. Identification of adaptation options and attitudes Based on the relatively benign impacts projected for the UK, farmers are likely to adapt autonomously to the changes. The role for government is likely to be in building adaptive capacity, for example to improve predictive modelling capability to understand impacts through time as well as to provide farmers with adequate information regarding impacts and adaptation options. Intervention may also be required to integrate climate change with existing policy, e.g. animal housing and transport regulations, and surveillance programmes for livestock disease. As previously noted “adaptation” can have different objectives and may also be variously interpreted by different stakeholders. It is important to understand how these varying interpretations and expectations are actually aligned, such that policy complements rather than displaces autonomous action. Accordingly, we identify likely adaptation options for specific climate change impacts, and indicate whether these are management, technical, or infrastructural measures (see main report section 12.1, pp114 for this list). These options are possible in theory, SID 5 (Rev. 3/06) Page 16 of 24 but there may be particular reasons why they may not be feasible for certain areas or production types in the UK. The project used two survey methods to narrow the possible options down to a shortlist based on stakeholder workshops held as part of this project. The shortlisted options include: more housing/shelter; ventilation; animal breeding; access to water; improved drainage; improved diseased monitoring and control; water and flood management defences; changes to timing of operations; farm management changes; research and vaccination. Understanding the position of those faced with the prospect of adapting is important for identifying barriers and prioritising action. It is also important because assumptions need to be made regarding the likely future level of private adaptation for impact and public adaptation costings. At present the impact calculations assume farmers undertake no adaptation. This ‘dumb farmer’ assumption is as unrealistic as assuming they will be ‘clairvoyant’ and adapt efficiently to all impacts. We are currently at the point of assuming an arbitrary level of adaptation; but understanding the likelihood of uptake of certain actions will make the assumption less arbitrary and more informed. An industry workshop was undertaken in autumn 2008 to explore attitudes and views on scenarios and potential adaptation responses. The workshops used an open-ended discussion format to explore key issues on impacts, adaptation, behaviours and perceived responsibilities for planning. These discussions were wide-ranging with recognition of the potential impacts that could result from extreme climate scenarios. However, it proved difficult to concentrate attention on the formation of concrete adaptation strategies that were simply not regarded as being a priority in business plans. In essence, business time horizons are more short-term than the perceived time horizon for significant impacts. At the very least, producers felt they needed better information on potential damages relevant to them to allow them to consider the relevance of climate impacts. To the extent that any adaptation could be motivated at this point, action would only be likely where adaptation action was coincidental with management options that improved productivity or that might deliver on mitigation obligations. In terms of responsibility there was an understandable tendency to suggest that longer term planning was a public (rather than private) responsibility with some emphasis put on the encouragement of improved breeding for improved resilience among species. Additional observations suggested that the age profile of producers is significant in attitudes and behaviour on climate change. This was possibly related to the experience of how market support policy had traditionally served as an industry buffer from adverse global conditions. The findings from these exercises were revealing to the extent to which they confirmed an a priori expectation that private enterprises are reluctant to contemplate investment plans without better information or downscaled climate forecasts. This indicates that future resources might focus on developing a capacity to translate national scenarios into storylines that are relevant to these groups. In methodological terms, the open-ended nature of discussions was perhaps not best suited to the identification of more definite (albeit hypothetical) adaptation options and decisions. However, break-out groups were useful for providing a range of position statements on adaptation that could subsequently be a basis for further empirical survey analysis. To further our understanding of adaptation attitudes, the project undertook two further exercises. The first was a survey exercise to elicit views using participants in a SAC annual Animal Health and Welfare conference (2008). The second exercise used the statements from the initial expert workshops in a Q survey that was later mailed to the same SAC conference survey participants who had indicated a willingness to participate in a further on-line survey. The initial survey was administered to fifty-two conference participants from a range of agriculture and veterinary related bodies. The majority were from within research (40%), with a smaller number being involved in commercial businesses (including vets and farmers) (20%) or public bodies (6%). Participants were presented with a questionnaire comprising a mix of eight open-and closed ended questions eliciting opinions on the most likely adaptations to be applied now and by 2020, in response to heat stress, wetter winters, changing seasonality and changes in disease trends. The vast majority of these response categories fall under the adaptation category “management”. A smaller number fall within the “technical” category. Infrastructural related adaptations include water management, housing and drainage. These adaptations span private and public roles. A second survey methodology (Q methodology) was developed on the basis of the initial expert workshop breakout group exercise. Twenty-four statements were identified, and then ranked by stakeholders against a seven point scale from agree to disagree. Four positions were identified, namely; Scenario one: Financial support for farmers with freedom over decision-making; Scenario two: Regulation; Scenario three: Education/information provision; and Scenario four: Technology. Scenario 1 very strongly advocates freedom over decision-making, with financial support where necessary. While Scenario 2 advocates regulation used as a safety-net to ensure certain standards and safeguards are met beyond the autonomy provided by scenario 1. In reality a compromise between scenario 1 and 2 may be the most appropriate approach to ensuring effective adaptation without SID 5 (Rev. 3/06) Page 17 of 24 frustrating and perhaps disengaging farmers who may be adapting anyway. Education provision can go hand in hand with both Scenario 1 and 2, as can technology. This section has provided a clearer indication of attitudes among a limited sample of livestock industry, in addition to a summary of possible adaptations that may occur. The findings from each survey provide several insights about the attitudes towards adaptation from within the livestock industry. The first survey provides a useful shortlist of which adaptations are prioritised now and in 2020; the Q survey reveals four distinct positions as regards likely and preferred scenarios of climate change adaptation within the livestock industry. These results imply an expectation of a combination of private and public responses. 13. Assessment of key public responses The evidence gathered here suggests that autonomous adaptation will be gradual and that private agents are adept at assessing the economic viability of interventions aimed at maintaining their own productivity. From the available evidence, we anticipate that the external costs of this process will be small and that the management of these impacts is in any case likely to be overtaken by other policies that are specifically focussed on these endpoints. For example, increased emissions from livestock will be addressed by more aggressive mitigation incentives at the farm scale and an evolving trend towards the use of carbon benchmarking (including nitrogen) or even an instrument based on a carbon price. Similarly, diffuse pollution will in the interim be targeted by provisions under the Water Framework Directive, Nitrate Vulnerable Zones and a range of related guidance on management of waste. These changes should also be set against a trend of falling livestock numbers. What then is the public role for the sector and how to appraise efficient intervention? The appraisal of adaptation responses pre-supposes some indication of the magnitude of impacts and when responses might take place. Yet the residual impacts of heat stress and disease incursion are highly uncertain. Only the former can be potentially modelled using downscaled data accompanying extreme event information included in UKCP09 and the impacts are arguably a shared responsibility. A straightforward adaptation response would involve a periodic review of regulatory standards for housing and transport. These standards can also be informed by a review the impacts of conditions in countries with projected climate conditions. In the case of disease, while the data are uncertain, we can arguably base a worst case scenario on recent experience with epidemics. The total costs arising from the last major episode of Foot and Mouth outbreak in 2001 have been put at around £9 billion, with at least £3 billion in direct costs to the public sector and about £5 billion in costs to tourism and the rural economy. Out of the total costs incurred during the outbreak, compensation payments to farmers for the slaughter of their animals and welfare reasons were placed at £1.34 billion. These figures clearly dwarf any other cost be have been able to identify in this study, The Foot and Mouth episode raised several useful lessons; specifically, this and other recent crises have led to a clear government message about the need for a sharing of risk in disease management. The desire to share risk and responsibility is set out in the government's Animal Health and Welfare Strategy (2004), and is restated in Partners for Success (Defra 2005). In essence, if government acts as an underwriter of losses there is little incentive for appropriate behavioural change that can minimise disease risks. While government cannot monitor risky behaviours it can transmit a clear message in relation to the eventual sharing of costs in the event of future episodes. This message on ultimate liability for damages is what can lead to modified behaviour, and the learning from this experience can be extended to encompass the increased risks related to climate change. Only in the case of extreme events is there likely to be a significant deviation from gradual adaptation pathway and there is some merit in exploring the expected damages from the risk scenarios Because of the uncertain nature of the impacts of climate change adaptation decisions need to be robust against a variety of future climate outcomes. Hallegatte (2009) proposes a framework for assessing robustness under uncertainty. The criteria he suggests include no-regrets strategies, reversible and/or flexible strategies; cheap safety margins; soft strategies; reduced decision time horizon, and synergies with mitigation. Many of the suggested adaptations relevant for the livestock sector appear relatively robust against uncertainty, using Hallegatte’s criteria. Few major infrastructural irreversible adaptations are applicable to agriculture, with the exception of some related to water storage and irrigation. While some adaptations will entail an initial cost, such as improving shelter or ventilation, these are likely to be no-regrets in the sense that they will provide protection from current climate variability. Many of the adaptation actions are changes in management systems, which will not entail an initial cost and are reversible and flexible; for example adjusting the timing of lambing and calving in response to changing seasonality. SID 5 (Rev. 3/06) Page 18 of 24 Adaptations assessed as to their robustness against uncertainty, their effect on mitigation, and who would be adapting (++ = this adaptation always has the characteristic of the column it is in; + = in some cases the adaptation has this characteristic, but not all) Adaptation Reversible/ NoSafety Soft Reduced Public/ Effect on option flexible regret margins strategy decision Private mitigatime tion horizons Heat Stress - now More housing/shelter Ventilation + +* ++ Private +ve/-ve + +* ++ Private -ve Water management Heat Stress – 2020 Animal breeding + ++ ++ ++ + Better housing + +* Access to water + Wetter winters – now More housing/ shelter Improve drainage + +* ++ Private +ve/-ve + +* + Private +ve Disease monitoring/control Wetter winters – 2020 Animal breeding ++ ++ ++ ++ + Water and flood management/ defences Housing/shelter + +* ++ Public/ Private + +* ++ Private +ve/-ve ++ ++ ++ ++ Private +ve /-ve ++ ++ ++ ++ Private ++ ++ ++ ++ ++ Private + + + + + Public ++ ++ ++ ++ Private + + + + Public ++ ++ ++ ++ Private ++ ++ ++ ++ ++ Public + ++ ++ ++ + Public Changing seasonality - now Animals out earlier/ outwintering/ in later Changes to cropping systems Farm management changes Research Changing seasonality – 2020 Changes to cropping systems Research Changes to lambing/calving Changing disease trends – now Monitoring/ Surveillance Research SID 5 (Rev. 3/06) + ++ ++ ++ + ++ + ++ Public/ Private Public +ve /-ve Private +ve/-ve Public/ Private Public Public + Page 19 of 24 +ve /-ve +ve /-ve Vaccination ++ ++ + + Changing disease trends – 2020 Animal breeding ++ + Vaccination ++ ++ + Surveillance ++ ++ ++ ++ ++ Changes in farm management ++ ++ ++ ++ ++ + Private Public +ve /-ve Private/ Public Public/ Private Private +ve /-ve *Some adaptations will make agriculture more resilient to current climate variability. Options which have a (+*) in the No-regrets column assume that the action will increase resilience to the current climate. Some adaptations are less clearly distinguishable as public or private. Water management and access to water is classified as both public and private, because while individual farmers can improve their water management and water storage capacity, abstraction demands can become a regional issue, particularly if there are competing demands for water. Other adaptations may also be adopted by private or public actors, such as vaccination and surveillance, which may be adopted on an individual farm level, or in the event of an outbreak there may be a regulation requiring vaccination. Research into breeding goals and vaccine development are both public and private. The insurance sector (risk sharing) is likely to become more relevant to future adaptation decisions, whether through traditional indemnity-based insurance, or through other options that may be more suitable for climate based insurance, such as index-based schemes, weather derivatives or catastrophe bonds. For more detail on these schemes refer to Barnett & Mahul (2007), Mills (2007), Fankhauser et al. (2008). Ideally insurance can create incentives for adaptation and reducing risk by sending market signals about the climate risk and encouraging risk-reducing behaviour through discounted premiums. However in reality this may not occur exactly in this way, because of uncertainty about actual climate impacts, budget constraints and structural, social and cultural barriers which prevent individuals and businesses from adapting, particularly if relocation would be the most appropriate adaptation. In addition, as climate risks increase, insurance costs will also increase and may prove to be too costly for some actors, leaving them highly vulnerable to climate change. In these cases public intervention may be necessary to facilitate the sharing of climate risks between the insurance sector and the state. Fankhauser et al. (2008) discuss the role of environmental pricing, particularly in water markets, in encouraging and promoting adaptation to climate change. More generally, the appropriate pricing of natural resources can in fact improve the resilience of ecosystems and enable them to cope better with climate change. The identification and protection of ecosystem services such as watershed protection through appropriate agricultural management and/or forest cover can provide protection against flooding and erosion, as well as regulating the water table and minimising water pollution. It is important therefore to think laterally about the valuation of ecosystem goods and services; in this case, the role of natural assets as buffers to climate impacts 2. Public-private partnership is also an area that could contribute usefully to facilitating adaptation. As well as the financial benefits, public sector involvement sends a clear signal to private industry and individuals that the public sector takes adaptation seriously and is committed to it. Barriers to adaptation identified in some sectors include uncertainty regarding future policy commitment to adaptation, therefore if the public sector is engaged in adaptation activities themselves this may remove some of these barriers. Examples of public private partnership exist in other sectors, such as health, education and research and development. In agriculture, the most relevant public private partnership is likely to occur in R&D, where the development of technology may facilitate adaptation. Examples already exist in the work of crop genetic improvement networks and proposed foundation of an animal genetic equivalent. In summary, there are significant challenges in promoting adaptation to climate change through policy intervention in agriculture. While economic efficiency (i.e. cost-benefit analysis) provides a rational basis for adaption planning, it is important to recognise a number of complicating factors that limit adaptation responses relative to mitigation action. The first is that while mitigation is likely to be more of a mandatory requirement with more immediate actions, adaptation responses are continual processes requiring constant refinement as damage scenarios become more certain and/or impacts become increasingly apparent. The costs of on-going adaptation 2 We note that the National Ecosystem Assessment for the UK is currently under preparation and encompass the linkages between ecosystem integrity and benefits to related economic sectors. SID 5 (Rev. 3/06) Page 20 of 24 and the residual impacts lead to complications in identifying the costs and benefit of adaptation, and in determining the distributional impacts of future adaptation. A second complication is in terms of coordinating how private adaptation responses can be reconciled with desirable public good outcomes. Little is known about how the promotion of private adaptation will impact on public goods, or how these impacts can be minimised through cooperative adaptation planning. This leads to a final observation on the respective private and public good roles. There is clearly a public interest role in the conservation of public goods, and in the facilitation of private resilience. But in the absence of more definitive impact scenarios, that role is largely limited to information provision and investment in research to understand how coordinated action can work. There is currently a limited evidence base on comprehensive adaptation measures, particularly in livestock systems and their costs. Part of the public good role should be to develop inventories of adaptation measures and reconcile these with mitigation requirements. Interaction with mitigation It has already been noted that many adaptation outcomes are likely to be ancillary benefits of existing environmental policies and regulations that are in place to safeguard environmental goods and services. The extent of these policy synergies warrants further analysis, as does the important interaction with more immediate greenhouse gas mitigation actions. Some adaptations may have unintended consequences on efforts to reduce GHG emissions (mitigation). This is known in the climate change literature as maladaptation. The most obvious example is in terms of increased emissions from cooled or ventilated buildings and transportation. Housing animals for longer will affect the nitrous oxide emissions from manure (being collected centrally rather than from grazing on the fields) but the direction is uncertain. New housing would require energy in the building process and also possibly in the ongoing running of the building, and if mechanical ventilation was included this would almost certainly result in an increase in energy use. Unless the energy was sourced from renewable sources, this would lead to an increase in emissions. Drainage was considered to be positive for mitigation, due to the alteration of the soil structure which will reduce nitrous oxide emissions. Animal breeding may either help with mitigation efforts or lead to greater emissions depending on the type of animals that are bred. Animals that can cope with higher temperatures are generally smaller so greater numbers would be required to maintain the same output as larger animals, resulting in a greater level of emissions. Larger animals generally produce fewer emissions per unit of product. 14. Conclusions and recommendations This report has presented estimates of the major impacts affecting livestock in the UK resulting from a changing climate. It has also scoped the requirement for public intervention to facilitate climate change adaptation in the UK livestock sector. A secondary objective has been to determine the basis for identifying economically efficient adaptation if intervention is required. As a man-made adjunct to natural ecosystems, agriculture is potentially the sector of the UK economy most exposed to climate change. The sector may possess a potential adaptive capacity, but in addition to uncertain warming scenarios, inherent biological complexities complicate our understanding of what planned adaptations will be necessary, their timing and effectiveness, and how adaptation responsibilities can be clearly divided between private and public sectors. A key question is whether the extent and variability of predicted changes will motivate accelerated private action that has unanticipated consequences for the rest of society. The focus here is in terms of impacts to public goods that are valued by wider society. The broad conclusion we reach at this point is that while there is a need to adapt, the extent of required adaptation is largely within the capacity of the livestock industry and can be motivated by information to provoke an attitudinal shift and increased awareness that climate change presents certain risks that need to be factored into farm and production planning. This shift does not currently represent a radical change from the gradual autonomous adaptation that characterises the adjustments different parts of the industry have had to undertake in response to market liberalisation over the last two decades. Using current data on grazing potential and pollution modelling, adaptation responses are unlikely to bring about significant impacts in terms of air and water pollution. But the potential for extreme events, heat waves, flooding, and disease are highlighted as key vulnerabilities and significant research gaps that will require revision as part of the Climate Change Risk Assessment process. In relation to the disease impacts, an important policy adaptation has already been noted in terms of the intention to promote cost sharing as a means to alter behaviours. But even with this policy shift, the UK is at risk of introductions of exotic diseases some of which are highly pathogenic and contagious with significant damage potential. With current research we are forced to extrapolate further than the available data warrants when making these predictions and there is a particular need to focus on improving these scenarios. This involves: 1. Data on trends seen in the field for model fitting 2. Quantification of mechanisms of effects of CC on disease epidemiology/ecology to improve predictive power of models SID 5 (Rev. 3/06) Page 21 of 24 3. Early warning surveillance systems of approaching threats (i.e. outside the UK) and outbreaks in the UK. In relation to impacts to livestock production and welfare the changing climate is likely to be an additional stressor for livestock that needs to be managed. These results show that the gradual change in climate is likely to impact on production output as well as functional fitness of livestock, in some cases leading to increased livestock mortality. However it is extreme events that could have the largest impact on livestock systems and therefore provide the greatest challenge for livestock managers. Also, the interaction of a changing climate with adopted mitigation tools needs to be monitored to ensure that both mitigation and adaptation measures are compatible and sustainable into the future. Continued development of information resources and tools will help farmers improve the resilience of their systems. This could include: 1. Monitoring the thermo tolerance of livestock in UK farming systems and transport and advising on adaptations, private (e.g., addition of shelter breaks, housing/grazing patterns) and public (e.g., updating transport and housing guidelines and regulation). 2. Research and development of new and novel tools (e.g., livestock and plant breeding) that help farmers adapt to climate challenges in a cost effective and sustainable way that have no or limited environmental impact in their own right. 3. Understanding the interaction between mitigation tools, a changing climate and adaptation tools. There is much that the private sector can do to adapt, and in the UK, producers have both the capacity and the knowledge to adapt to projected temperature ranges. However producers do need information on both the potential for worst case scenarios and what their responsibilities are in the event that these arise. The public role therefore lies in building adaptive capacity, i.e. basically letting farmers operate with improved information on risk and in setting the appropriate regulatory and policy framework that facilitates flexibility to change while setting environmental constraints on the directions of change. The adaptation literature offers a number of principles for decisions about both private and public adaptation of relevance to the livestock sector. Broadly these indicate the need to foster an adaptive capacity in the industry and to identify no-regrets investments, and for adaptation options to be flexible (e.g. reversible) to cope with potential worst-case scenarios, or changing conditions (e.g. increasing mitigation requirements as well as a change in projected climate). These principles place more emphasis on so-called “soft” strategies; those that do not involve engineering or infrastructure, but involve institutional or financial tools, which generally have greater flexibility or reversibility than hard adaptation options. Soft adaptive strategies are already inherent in government objectives for fostering resilience and adaptive capacity in agriculture using better information and R&D policy. Alongside these interventions is a clear message on understanding and acceptance that there will be impacts and corresponding losses for which the sector should take responsibility. As noted, a range of existing policy shifts and regulations (e.g. milk quota reform, Nitrates Directive, and those related to housing and transport) can be construed as setting environmental constraints on the direction of adaptive responses. Policies relating to water demand and the conservation of ecosystem goods and services can also be viewed as adding a buffer to the agricultural sector. Adaptation needs to be considered in parallel to a more proximate mitigation objective that is also likely to shape the way livestock are produced in the UK. In general, there is a need for research on how alternative mitigation strategies may be developed to simultaneously maintain adaptive capacity in farm systems while reducing emissions. The conclusions we reach here do not obviate the need for more detailed social cost-benefit analysis to judge the return to public interventions for specific impacts (e.g. diffuse pollution and disease). 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In: The Proceedings of the Livestock and Global Climate Change Conference, International Conference in Hammamet, 17-20 May 2008. BSAS Published by Cambridge University Press ISBN 978-0-906562-62-8 SID 5 (Rev. 3/06) Page 24 of 24