How to value ecosystem goods and services in agriculture at increasing land use pressure ? Katarina Hedlund Lund university, Sweden

Land use projections Production of goods is increasing –Food, biofuels, timber, water use Natural habitats are declining Mitigating climate change –Increased pressure on land for production of biomass

EU biofuel strategy 20061% (produced in EU) 20106%10% of total area %43% of total area Agricultural land use Nowicki 2006

Current land use in Europe Eurostat 2008

Biofuel production AgricultureNatural grasslands Land use demands

Extensive agriculture, Dehesas in Spain How do we conserve ecosystem services and biodiversity ? Agri-environmental schemes: Extensification Protected areas Heterogeneity in landscapes

EU common agricultural policy CAP Implemented nationally as rural development plans with additional national funding CAP ( million €/yr), 47% of EU budget Farming is 5% of European economy CAP subsidies –Area based income support –Rural development actions –Agri-environmental schemes

Ecosystem services threatened by intensive agriculture Natural enemies Pollination Resistance to pests & invasive species Nutrient cycling Water retention Carbon retention

Intensification and above ground services Increased heterogeneity may give higher diversity Effect is scale dependent Not true for all species Tscharnkte et al. 2007

Soil ecosystem services Nutrient cycling N, P retention and availability to plants Water retention Aggregate structure, organic matter Carbon retention Fuels microbial activity, mitigates climate change

Soil ecosystem services -the ”workers”

Soil services Reduced under intensive management Hedlund 2002

SOILSERVICE Conflicting demands of land use: Soil biodiversity and the sustainable delivery of ecosystem goods and services in Europe value soil ecosystem services. predict sustainability of ecosystem services, by field and modelling studies. Build scenarios to identify economical and social drivers of land use

Biofuel production AgricultureNatural grasslands Land use demands Soil carbon Nutrients Natural enemies Pollination

Valuation of ecological services Market values of ecological services prevention of pests - natural enemies pollination water retention nutrient retention Non market values recreation landscapes Markanday et al 2008

Economic valuation a dynamic approach Ecosystem services in agriculture - Dynamic network of interacting organisms - Responding to changes in land use - Depending on spatial and temporal scales

SOILSERVICE Economic model simulated landscapes predicts regional land use (20 yrs) Ecological model farmers scale predicts output of ecosystem services Values of services for farmer and society Predictions on sustainability Feed back to policymakers

AgriPoliS Agent-based model of regional structural change over time and space Actions Interactions Farms Factor endowment Agricultural Policy Simulator (Happe 2004, Brady et al 2007) Institute of Agricultural Development in Central and Eastern Europe (IAMO), Halle, Germany

Drivers in relation to AgriPoliS Exogenous Prices of inputs/outputs Wage and interest rates Agricultural policy Climate Technology Endogenous Land market Regional markets Input & output levels Land use Landscape impacts ES production

Output from AgriPoliS Farm structure –Average farm size –Number of farms –Distribution of farm type Land use –Composition of crops –Distribution of field size –Landscape mosaic Econ. Performance –Land rents by soil type –Farm income –Farm profit –Investment activity –Returns to labour Livestock –Numbers of livestock –Animal density

SOILSERVICE field sites Regions for valuation of services

SOILSERVICE partners Lund University, Sweden, Dr Katarina Hedlund Swedish Institute for Food and Agricultural Economics, Sweden Dr. Mark Brady, University of Copenhagen, Denmark Prof. S ø ren Christensen, University of Helsinki, Finland Prof. Heikki Set ä l ä, Netherlands Institute of Ecology, NL, Prof. Wim H. Van der Putten, W ag eningen University, NL, Prof. Peter C. de Ruiter, Justus-Liebig-University of Giessen, Germany, Prof. Volkmar Wolters, Bio lo gy Centre of the Academy of Sciences, Czech Republic Dr. Jan Frouz, Aristotle University of Thessaloniki, Greece, Dr. Stefanos Sgardelis Lanca st er University, United Kingdom, Prof. Richard D. Bardgett Univer si ty of Reading, United Kingdom, Dr. Simon Mortimer

Landscape impacts – Land use & field size

Land use data (GIS based) Southern Sweden Cereal productionGrasslands