A reassessment of the economic effects of global climate change on U.S. agriculture

This study uses recent GCM forecasts, improved plant science and water supply data and refined economic modeling capabilities to reassess the economic consequences of long-term climate change on U.S. agriculture. Changes in crop yields, crop water demand and irrigation water arising from climate change result in changes in economic welfare. Economic consequences of the three GCM scenarios are mixed; GISS and GFDL-QFlux result in aggregate economic gains, UKMO implies losses. As in previous studies, the yield enhancing effects of atmospheric CO₂ are an important determinant of potential economic consequences. Inclusion of changes in world food production and associated export changes generally have a positive affect on U.S. agriculture. As with previous studies, the magnitude of economic effects estimated here are a small percentage of U.S. agricultural value.     

An Assessment of Integrated Climate Change Impacts on the Agricultural Economy of Egypt

This study used a quadratic programming sector model to assess the integrated impacts of climate change on the agricultural economy of Egypt. Results from a dynamic global food trade model were used to update the Egyptian sector model and included socio-economic trends and world market prices of agricultural goods. In addition, the impacts of climate change from three bio-physical sectors – water resources, crop yields, and land resources – were used as inputs to the economic model. The climate change scenarios generally had minor impacts on aggregated economic welfare (sum of Consumer and Producer Surplus or CPS), with the largest reduction of approximately 6 percent. In some climate change scenarios, CPS slightly improved or remained unchanged. These scenarios generally benefited consumers more than producers, as world market conditions reduced the revenue generating capacity of Egyptian agricultural exporters but decreased the costs of imports. Despite increased water availability and only moderate yield declines, several climate change scenarios showed producers being negatively affected by climate change. The analysis supported the hypothesis that smaller food importing countries are at a greater risk to climate change, and impacts could have as much to do with changes in world markets as with changes in local and regional biophysical systems and shifts in the national agricultural economy.     

Climate Change, Agriculture, and Water Quality in the Chesapeake Bay Region

Research on climate change and agriculture has largely focused on production, food prices, and producer incomes. However, societal interest in agriculture is much broader than these issues. The objective of this paper is to analyze the potential impacts of climate change on an important negative externality from agriculture, water quality. We construct a simulation model of maize production in twelve watersheds within the U.S. Chesapeake Bay Region that has economic and watershed components linking climate to productivity, production decisions by maize farmers, and nitrogen loadings delivered to the Chesapeake Bay. Maize is an important crop to study because of its importance to the region's agriculture and because it is a major source of nutrient pollution. The model is run under alternative scenarios regarding the future climate, future baseline (without any climate change), whether farmers respond to climate change, whether there are carbon dioxide (CO₂) enrichment effects on maize production, and whether agricultural prices facing the region change due to climate change impacts on global agricultural commodity markets. The simulation results differ from one scenario to another on the magnitude and direction of change in nitrogen deliveries to the Chesapeake Bay. The results are highly sensitive to the choice of future baseline scenario and to whether there are CO₂ enrichment effects. The results are also highly sensitive to assumptions about the impact of climate change on commodity prices facing farmers in the Chesapeake Bay region. The results indicate that economic responses by farmers to climate change definitely matter. Assuming that farmers do not respond to changes in temperature, precipitation, and atmosphericCO₂ levels could lead to mistaken conclusions about the magnitude and direction of environmental impacts.     

A FARMer's View of the Ricardian Approach to Measuring Agricultural Effects of Climatic Change

During the past few years two new methods, each based on the analogous region concept, have been developed to account for farmer adaptation in response to global climatic change. The first, called 'Ricardian' by Mendelsohn, Nordhaus, and Shaw (1994), econometrically estimates the impact of climatic and other variables on the value of farm real estate. Under some conditions, estimates of climate-induced changes in farm real estate capture first-round adaptations by farmers and represent the economic value of climatic change on agriculture. The second method, promulgated by Darwin et al. (1994) in the Future Agricultural Resources Model (FARM), uses a geographic information system to empirically link climatically derived land classes with other inputs and agricultural outputs in an economic model of the world. FARM provides estimates of economic impacts that fully account for all responses by economic agents under global climate change as well as estimates of Ricardian rents. The primary objective of this analysis is to evaluate how well changes in Ricardian rents measure agricultural or other effects of climatic change after all economic agents around the world have responded. Results indicate that changes in Ricardian rents on agricultural land are poor quantitative, but good qualitative, measures of how global climatic change is likely to affect the welfare of agricultural landowners, if one recognizes that increases in Ricardian rents actually indicate losses in landowner welfare and vice versa. Results also indicate that regional changes in Ricardian rents on all land are good qualitative measures of changes in regional welfare. They are poor quantitative welfare measures because they systematically overestimate both benefits and losses and are on average upwardly biased because inflated benefits are larger than exaggerated losses. Results also indicate that, when based on existing land-use patterns, changes in Ricardian rents on all the world's land are poor quantitative and qualitative measures of changes in world welfare. Despite these shortcomings, changes in Ricardian rents can provide useful information when other measures are not available. In this analysis, for example, estimated changes in Ricardian rents on all land indicate that climatic change would likely have detrimental effects in Latin America and Africa, beneficial effects in the former Soviet Union, and either detrimental or beneficial impacts in eastern and northern Europe and western and southern Asia. This is consistent with previous studies showing that climatic change would likely have detrimental, beneficial, and mixed effects on economic welfare in, respectively, equatorial, high latitude, and temperate areas. Estimated changes in Ricardian rents also indicate that aggregating Africa, Latin America, the former Soviet Union, eastern and northern Europe, and western and southern Asia into one region causes FARM's economic model to generate upwardly biased changes in world welfare. Modified results from scenarios with moderately flexible land-use change and which account for current land-use patterns indicate that world welfare may increase if the average surface land temperature does not increase by more than 1.0 or 2.0°C. If the average surface land temperature increases by 3.0°C or more, however, then world welfare may decline.     

The poverty implications of climate-induced crop yield changes by 2030

Accumulating evidence suggests that agricultural production could be greatly affected by climate change, but there remains little quantitative understanding of how these agricultural impacts would affect economic livelihoods in poor countries. Here we consider three scenarios of agricultural impacts of climate change by 2030 (impacts resulting in low, medium, or high productivity) and evaluate the resulting changes in global commodity prices, national economic welfare, and the incidence of poverty in a set of 15 developing countries. Although the small price changes under the medium scenario are consistent with previous findings, we find the potential for much larger food price changes than reported in recent studies which have largely focused on the most likely outcomes. In our low-productivity scenario, prices for major staples rise 10–60% by 2030. The poverty impacts of these price changes depend as much on where impoverished households earn their income as on the agricultural impacts themselves, with poverty rates in some non-agricultural household groups rising by 20–50% in parts of Africa and Asia under these price changes, and falling by significant amounts for agriculture-specialized households elsewhere in Asia and Latin America. The potential for such large distributional effects within and across countries emphasizes the importance of looking beyond central case climate shocks and beyond a simple focus on yields – or highly aggregated poverty impacts.     

Uncertainty in economic models of climate-change impacts

Uncertainty is poorly represented in existing studies of climate-change impacts. Methods that have been used to characterize uncertainty in the literature are described and the limitations of each discussed. It is found that two broad characterizations are useful. A large number of studies are based on several specific scenarios or attempt to randomize selected variables in their deterministic economic models. Other studies describe individual or collective reaction to risk. The first category falls short of an adequate representation of uncertainty by focusing primarily on a few values of variables included to capture variability. The second group of studies tend to focus more on behavior than impacts. What is needed are Monte Carlo type simulations where randomness is apparent in a series of independent draws from a distribution suitably adjusted for climate change. Some of the benefits of improvements in the characterization of uncertainty are discussed.I am thankful to my colleagues at the Economic Research Service (ERS), Linda Atkinson, George Frisvold, Charlie Hallahan, Betsey Kühn, Jan Lewandrowski, John Reilly, Keith Weibe and Olivia Wright for production assistance; to fellow members of the JPCC Working Group II chapter on Agriculture and participants in the IPCC seminar held at ERS for helpful discussions; to Jim Titus and an anonymous reviewer. The views expressed are those of the author and not necessarily those of the U.S. Department of Agriculture.     

Water Availability,Degree Days,and the Potential Impact of Climate Change on Irrigated Agriculture in California

We use the geo-referenced June Agricultural Survey of the U.S. Department of Agriculture to match values of individual farms in California with a measure of water availability as mediated through irrigation districts, and degree days, a nonlinear transformation of temperature, controlling for other influences on value such as soil quality, to examine the potential effects of climate change on irrigated agriculture in California. Water availability strongly capitalizes into farmland values. The predicted decrease in water availability in the latest climate change scenarios downscaled to California can therefore be expected to have a significant negative impact on the value of farmland.     

Linking regional stakeholder scenarios and shared socioeconomic pathways: Quantified West African food and climate futures in a global context

The climate change research community’s shared socioeconomic pathways (SSPs) are a set of alternative global development scenarios focused on mitigation of and adaptation to climate change. To use these scenarios as a global context that is relevant for policy guidance at regional and national levels, they have to be connected to an exploration of drivers and challenges informed by regional expertise.In this paper, we present scenarios for West Africa developed by regional stakeholders and quantified using two global economic models, GLOBIOM and IMPACT, in interaction with stakeholder-generated narratives and scenario trends and SSP assumptions. We present this process as an example of linking comparable scenarios across levels to increase coherence with global contexts, while presenting insights about the future of agriculture and food security under a range of future drivers including climate change.In these scenarios, strong economic development increases food security and agricultural development. The latter increases crop and livestock productivity leading to an expansion of agricultural area within the region while reducing the land expansion burden elsewhere. In the context of a global economy, West Africa remains a large consumer and producer of a selection of commodities. However, the growth in population coupled with rising incomes leads to increases in the region’s imports. For West Africa, climate change is projected to have negative effects on both crop yields and grassland productivity, and a lack of investment may exacerbate these effects. Linking multi-stakeholder regional scenarios to the global SSPs ensures scenarios that are regionally appropriate and useful for policy development as evidenced in the case study, while allowing for a critical link to global contexts.     

Climate change,economic growth and energy policy: A recommended U.S. strategy for the coming decades an editorial

Alan D. Hecht Director of the National Climate Program Office, an Office created by Congress in 1978 to coordinate a U.S. program of climate research and services. The office is located in the National Oceanic and Atmospheric Administration within the Department of Commerce; Bo R. Döös Member of the Swedish Academy of Sciences, is a visiting UCAR scientist (University Corporation for Atmospheric Research) in the NCPO. Views expressed in this editorial are of the authors and do not reflect any official views of UCAR or NOAA, DOC, or other federal agencies within the NCP.     

Land-use futures in the shared socio-economic pathways

In the future, the land system will be facing new intersecting challenges. While food demand, especially for resource-intensive livestock based commodities, is expected to increase, the terrestrial system has large potentials for climate change mitigation through improved agricultural management, providing biomass for bioenergy, and conserving or even enhancing carbon stocks of ecosystems. However, uncertainties in future socio-economic land use drivers may result in very different land-use dynamics and consequences for land-based ecosystem services. This is the first study with a systematic interpretation of the Shared Socio-Economic Pathways (SSPs) in terms of possible land-use changes and their consequences for the agricultural system, food provision and prices as well as greenhouse gas emissions. Therefore, five alternative Integrated Assessment Models with distinctive land-use modules have been used for the translation of the SSP narratives into quantitative projections. The model results reflect the general storylines of the SSPs and indicate a broad range of potential land-use futures with global agricultural land of 4900 mio ha in 2005 decreasing by 743 mio ha until 2100 at the lower (SSP1) and increasing by 1080 mio ha (SSP3) at the upper end. Greenhouse gas emissions from land use and land use change, as a direct outcome of these diverse land-use dynamics, and agricultural production systems differ strongly across SSPs (e.g. cumulative land use change emissions between 2005 and 2100 range from −54 to 402 Gt CO₂). The inclusion of land-based mitigation efforts, particularly those in the most ambitious mitigation scenarios, further broadens the range of potential land futures and can strongly affect greenhouse gas dynamics and food prices. In general, it can be concluded that low demand for agricultural commodities, rapid growth in agricultural productivity and globalized trade, all most pronounced in a SSP1 world, have the potential to enhance the extent of natural ecosystems, lead to lowest greenhouse gas emissions from the land system and decrease food prices over time. The SSP-based land use pathways presented in this paper aim at supporting future climate research and provide the basis for further regional integrated assessments, biodiversity research and climate impact analysis.     

World trade as the adjustment mechanism of agriculture to climate change

This paper evaluates the role of trade as a mechanism of economic adjustment to the impacts of climate change on agriculture. The study uses a model of the world economy able to reflect changes in comparative advantage; the model is used to test the hypotheses that trade can assure that, first, satisfying global agricultural demand will not be jeopardized, and, second, general access to food will not decrease. The hypotheses are tested for three alternative scenarios of climate change; under each scenario, regions adjust to the climatic assumptions by changing the land areas devoted to agriculture and the mix of agricultural goods produced, two of the major mechanisms of agricultural adaptation. We find that trade makes it possible to satisfy the world demand for agricultural goods under the changed physical conditions. However, access to food decreases in some regions of the world. Other patterns also emerge that indicate areas of concern in relying on trade as a mechanism for the adjustment of agriculture to likely future changes in climate.     

Climate Change Impacts for the Conterminous USA: An Integrated Assessment

Human activities have altered the distribution and quality of terrestrial ecosystems. Future demands for goods and services from terrestrial ecosystems will occur in a world experiencing human-induced climate change. In this study, we characterize the range in response of unmanaged ecosystems in the conterminous U.S. to 12 climate change scenarios. We obtained this response by simulating the climatically induced shifts in net primary productivity and geographical distribution of major biomes in the conterminous U.S. with the BIOME 3 model. BIOME 3 captured well the potential distribution of major biomes across the U.S. under baseline (current) climate. BIOME 3 also reproduced the general trends of observed net primary production (NPP) acceptably. The NPP projections were reasonable for forests, but not for grasslands where the simulated values were always greater than those observed. Changes in NPP would be most severe under the BMRC climate change scenario in which severe changes in regional temperatures are projected. Under the UIUC and UIUC + Sulfate scenarios, NPP generally increases, especially in the West where increases in precipitation are projected to be greatest. A CO₂-fertilization effect either amplified increases or alleviated losses in modeled NPP. Changes in NPP were also associated with changes in the geographic distribution of major biomes. Temperate/boreal mixed forests would cover less land in the U.S. under most of the climate change scenarios examined. Conversely, the temperate conifer and temperate deciduous forests would increase in areal extent under the UIUC and UIUC + Sulfate scenarios. The Arid Shrubland/Steppe would spread significantly across the southwest U.S. under the BMRC scenario. A map overlay of the simulated regions that would lose or gain capacity to produce corn and wheat on top of the projected distribution of natural ecosystems under the BMRC and UIUC scenarios (Global mean temperature increase of +2.5 °C, no CO₂ effect) helped identify areas where natural and managed ecosystems could contract or expand. The methods and models employed here are useful in identifying; (a) the range in response of unmanaged ecosystem in the U.S. to climate change and (b) the areas of the country where, for a particular scenario of climate change, land cover changes would be most likely.     

Estimating economic effects of changes in climate and water availability

Social, economic, and environmental systems can be vulnerable to disruptions in water supplies that are likely to accompany future climate changes. Coupled with the challenges of tightening environmental regulations, population growth, economic development and fiscal constraints water supply systems are being pushed beyond the limits of their design and capacity for maintenance. In this paper we briefly review key economic concepts, various economic measures and metrics, and methods to estimate the economic effects on water resources from water supply changes that could accompany climate change. We survey some of the recent empirical literature that focuses on estimates developed for U.S. watersheds at both national and regional scales. Reported estimates of potential damage and loss associated with climate and water supply changes that we observe are significant, though often the metrics vary and make valid and consistent direct cross-comparisons difficult. Whether in terms of changes in GDP or in terms of estimated changes in economic welfare based on associated changes in economic costs and benefits, both national and regional estimates suggest that governments and organizations incorporate prudent steps to assess vulnerabilities to plausible future water supply and demand scenarios and develop responsive adaptation strategies.     

Turbulent transport within and above a maize canopy

Hot-wire anemometers were used to measure air temperature and the three velocity components of the wind within and above a maize canopy. From digitized anemometer outputs, correlation coefficients for vertical heat flux and turbulent momentum transfer were calculated. A comparison of these coefficients with profiles of mean wind speed and mean temperature indicates that the main features of the turbulence may be explained in terms of the usual mixing-length theory. Instantaneous records of heat and momentum flux, however, indicate the existence of other competing turbulent mechanisms due to the unsteady, non-equilibrium nature of the turbulent flow. Regimes of flow dominated by mechanical and/or thermal mixing are indicated. Spectral results show that high shear and turbulent intensity levels as well as the presence of the maize leaves and stalks as vortex-shedding surfaces complicate the energy transfer mechanism. An energy balance between radiation and convection reveals that the energy budget is primarily a balance between solar radiation and the flux of latent heat.Contribution of the Sibley School of Mechanical and Aerospace Engineering, Cornell University, in cooperation with the Agricultural Research Service, U.S. Department of Agriculture, Ithaca, N.Y., U.S.A. and the Cornell University Agricultural Experiment Station. Department of Agronomy Series No. 1116.Sibley School of Mechanical and Aerospace Engineering, Cornell University; U.S. Department of Agriculture, Gainesville, Florida Section for Estuary and Fjord Studies, River and Harbour Laboratory, Technical University of Norway, Trondheim, Norway; State Univ. of New York at Buffalo; and U.S. Department of Agriculture and Cornell University; respectively.     

Assessing the impact of climate change on representative field crops in Israeli agriculture: a case study of wheat and cotton

Climate changes, associated with accumulation of greenhouse gases, are expected to have a profound influence on agricultural sustainability in Israel, a semi-arid area characterized by a cold wet winter and a dry warm summer. Accordingly this study explored economic aspects of agricultural production under projected climate-change scenarios by the “production function” approach, as applied to two representative crops: wheat, as the major crop grown in Israel’s dry southern region, and cotton, representing the more humid climate in the north. Adjusting outputs of the global climate model HadCM3 to the specific research locations, we generated projections for 2070–2100 temperatures and precipitations for two climate change scenarios. Results for wheat vary among climate scenarios; net revenues become negative under the severe scenario (change from −145 to −273%), but may increase under the moderate one (−43 to +35%), depending on nitrogen applied to the crop. Distribution of rain events was found to play a major role in determining yields. By contrast, under both scenarios cotton experiences a considerable decrease in yield with significant economic losses (−240 and −173% in A2 and B2 scenarios, respectively). Additional irrigation and nitrogen may reduce farming losses, unlike changes in seeding dates.     

U.S. Agriculture and Climate Change: New Results

We examined the impacts on U.S. agriculture of transient climate change assimulated by 2 global general circulation models focusing on the decades ofthe 2030s and 2090s. We examined historical shifts in the location of cropsand trends in the variability of U.S. average crop yields, finding thatnon-climatic forces have likely dominated the north and westward movement ofcrops and the trends in yield variability. For the simulated future climateswe considered impacts on crops, grazing and pasture, livestock, pesticide use,irrigation water supply and demand, and the sensitivity to international tradeassumptions, finding that the aggregate of these effects were positive for theU.S. consumer but negative, due to declining crop prices, for producers. Weexamined the effects of potential changes in El Niño/SouthernOscillation (ENSO) and impacts on yield variability of changes in mean climateconditions. Increased losses occurred with ENSO intensity and frequencyincreases that could not be completely offset even if the events could beperfectly forecasted. Effects on yield variability of changes in meantemperatures were mixed. We also considered case study interactions ofclimate, agriculture, and the environment focusing on climate effects onnutrient loading to the Chesapeake Bay and groundwater depletion of theEdward's Aquifer that provides water for municipalities and agriculture to theSan Antonio, Texas area. While only case studies, these results suggestenvironmental targets such as pumping limits and changes in farm practices tolimit nutrient run-off would need to be tightened if current environmentalgoals were to be achieved under the climate scenarios we examined     

A scenario based analysis of land competition between food and bioenergy production in the US

Greenhouse gas abatement policies will increase the demand for renewable sources of energy, including bioenergy. In combination with a global growing demand for food, this could lead to a food-fuel competition for bio-productive land. Proponents of bioenergy have suggested that energy crop plantations may be established on less productive land as a way of avoiding this potential food-fuel competition. However, many of these suggestions have been made without any underlying economic analysis. In this paper, we develop a long-term economic optimization model (LUCEA) of the U.S. agricultural and energy system to analyze this possible competition for land and to examine the link between carbon prices, the energy system dynamics and the effect of the land competition on food prices. Our results indicate that bioenergy plantations will be competitive on cropland already at carbon taxes about US $20/ton C. As the carbon tax increases, food prices more than double compared to the reference scenario in which there is no climate policy. Further, bioenergy plantations appropriate significant areas of both cropland and grazing land. In model runs where we have limited the amount of grazing land that can be used for bioenergy to what many analysts consider the upper limit, most of the bioenergy plantations are established on cropland. Under the assumption that more grazing land can be used, large areas of bioenergy plantations are established on grazing land, despite the fact that yields are assumed to be much lower (less than half) than on crop land. It should be noted that this allocation on grazing land takes place as a result of a competition between food and bioenergy production and not because of lack of it. The estimated increase in food prices is largely unaffected by how much grazing land can be used for bioenergy production.     

Climate Change Impacts for the Conterminous USA: An Integrated Assessment

PNNLs Agriculture and Land Use is used to demonstrate the impact of potential changes in climate on agricultural production and land use in the United States. AgLU simulates production of four crop types in several world regions, in 15-yr time steps from 1990 to 2095. Changes in yield of major field crops in the United States, for 12 climate scenarios, are obtained from simulations of the EPIC crop growth model. Results from the HUMUS model are used to constrain crop irrigation, and BIOME3 model is used to simulate productivity of unmanaged ecosystems. Assumptions about changes in agricultural productivity outside the United States are treated on a scenario basis, either responding in the same way as in the United States, or not responding to climate.     

An economic analysis of potential impacts of climate change in Egypt

Projections of climate impacts on crop yields simulated for different General Circulation Model (GCM) scenarios are used, in a recursively dynamic general equilibrium framework, to account for potential economy-wide impacts of climate change in Egypt. Comparing these impact projections to those obtained under a reference, business-as-usual, scenario assuming some moderate changes in the political, economic or technological spheres, indicates that global warming has potentially negative effects. The analysis is based on a global assessment of potential climate change-induced variations in world commodity production and trade. The Egyptian agricultural sector, and the non-agricultural sector to a lesser extent, are projected to be increasingly less self-sufficient. Specific potential adverse impacts are identified. The simulation results show that high-cost adaptation measures involving major changes in the agricultural system and practices may mitigate these adverse impacts. Stimulating economic development of the rural areas and creating appropriate conditions for effective diffusion and development of technologies — particularly for the agricultural sector — would seem a desirable strategy. Perhaps, more importantly, the simulation results show that the assumption of exogenously determined technological progress may be inappropriate, in which case the potential adverse impacts of a future warming of the global climate are likely to be fewer than is indicated in this study — if prevailing constraints on productivity growth in the major food and feed grains are ‘released’ by endogenous advances in technology.     

Piecemeal or combined? Assessing greenhouse gas mitigation spillovers in US forest and agriculture policy portfolios

ABSTRACT

Forest and agricultural sector response to comprehensive climate policy is well represented in the literature. Less analysis has been devoted to piecemeal solutions. We use the Forest and Agriculture Sector Optimization Model with Greenhouse Gases (FASOMGHG) to project the individual and combined effect of three existing U.S. Department of Agriculture programmes with potential to increase greenhouse gas (GHG) mitigation. We find that a combined policy scenario may achieve greater mitigation than individual constituent programmes, suggesting the possibility of complementary spillover effects in some periods. Mitigation varies over time, however, and some periods experience net emissions as markets and management practices respond to initial policy shocks. The regional distribution of GHG mitigation also varies between policy scenario. Differences in the magnitude and imputed cost of mitigation under each scenario, generating negative values for some programmes and time periods, reinforces the need to evaluate portfolio design to cost-effectively achieve near-term GHG mitigation.

Key policy insights

• Increased near-term GHG mitigation in the forest and agriculture sectors in the US may be possible by expanding or refocusing the emphasis of existing programmes.

• Implementing several such forest and agricultural programmes simultaneously may lead to greater GHG mitigation than when implemented separately, indicating the possibility of positive spillover effects.

• Programmes targeted to agricultural management may hold outsized potential to achieve near-term GHG mitigation; Policies aimed at influencing land use conversion appear to be more vulnerable to reversion and subject to larger inter-annual swings.

• The staged implementation of programmes could also be useful, helping to encourage increased mitigation (or the retention of already achieved mitigation) over time as markets re-equilibrate to initial shocks.

• Though the particular scenarios assessed here are unique to the US, our findings may be applicable to other locations outside the US where land management is influenced by individual market actors and there is competition between forest and agricultural land uses.