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Managing soil natural capital: An effective strategy for mitigating future agricultural risks?

Cong, Ronggang LU ; Hedlund, Katarina LU ; Andersson, Hans and Brady, Mark LU (2014) In Agricultural Systems 129. p.30-39
Abstract
Uncontrollable events such as adverse weather and volatile prices present considerable risks for arable farmers. Soil natural capital, which views the capacity of soil biodiversity to generate ecosystem services as a component of farm capital, could be important for the stability and resilience of arable production systems. We investigate therefore whether managing soil natural capital could be an effective strategy for mitigating future agricultural risks. We do this by constructing a dynamic stochastic portfolio model to optimize the stock of soil organic carbon (SOC)—our indicator of soil natural capital—when considering both the risks and returns from farming. SOC is controlled via the spatial and temporal allocation of cash

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Uncontrollable events such as adverse weather and volatile prices present considerable risks for arable farmers. Soil natural capital, which views the capacity of soil biodiversity to generate ecosystem services as a component of farm capital, could be important for the stability and resilience of arable production systems. We investigate therefore whether managing soil natural capital could be an effective strategy for mitigating future agricultural risks. We do this by constructing a dynamic stochastic portfolio model to optimize the stock of soil organic carbon (SOC)—our indicator of soil natural capital—when considering both the risks and returns from farming. SOC is controlled via the spatial and temporal allocation of cash

crops and an illustrative replenishing land use. We find that higher soil natural capital buffers yield variance against adverse weather and reduces reliance on external inputs. Managing soil natural capital has therefore the potential to mitigate two serious agricultural risks: energy price shocks and adverse weather events, both of which are likely to be exacerbated in the future due to, e.g., globalization and climate change. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Soil ecosystem services, Copula model, Dynamic portfolio theory, Soil organic carbon, Sustainable agriculture, Resilience
in
Agricultural Systems
volume
129
pages
30 - 39
publisher
Elsevier
external identifiers
  • wos:000340311200004
  • scopus:84903906422
ISSN
0308-521X
DOI
10.1016/j.agsy.2014.05.003
project
BECC
language
English
LU publication?
yes
id
b8eb560c-54e3-4408-a2bf-deb5c7a18057 (old id 4531103)
alternative location
http://www.sciencedirect.com/science/article/pii/S0308521X14000535#
date added to LUP
2014-07-22 10:51:49
date last changed
2017-11-12 03:49:32
@article{b8eb560c-54e3-4408-a2bf-deb5c7a18057,
  abstract     = {Uncontrollable events such as adverse weather and volatile prices present considerable risks for arable farmers. Soil natural capital, which views the capacity of soil biodiversity to generate ecosystem services as a component of farm capital, could be important for the stability and resilience of arable production systems. We investigate therefore whether managing soil natural capital could be an effective strategy for mitigating future agricultural risks. We do this by constructing a dynamic stochastic portfolio model to optimize the stock of soil organic carbon (SOC)—our indicator of soil natural capital—when considering both the risks and returns from farming. SOC is controlled via the spatial and temporal allocation of cash<br/><br>
crops and an illustrative replenishing land use. We find that higher soil natural capital buffers yield variance against adverse weather and reduces reliance on external inputs. Managing soil natural capital has therefore the potential to mitigate two serious agricultural risks: energy price shocks and adverse weather events, both of which are likely to be exacerbated in the future due to, e.g., globalization and climate change.},
  author       = {Cong, Ronggang and Hedlund, Katarina and Andersson, Hans and Brady, Mark},
  issn         = {0308-521X},
  keyword      = {Soil ecosystem services,Copula model,Dynamic portfolio theory,Soil organic carbon,Sustainable agriculture,Resilience},
  language     = {eng},
  pages        = {30--39},
  publisher    = {Elsevier},
  series       = {Agricultural Systems},
  title        = {Managing soil natural capital: An effective strategy for mitigating future agricultural risks?},
  url          = {http://dx.doi.org/10.1016/j.agsy.2014.05.003},
  volume       = {129},
  year         = {2014},
}