The most recent and complete agriculture model documentation is available on Pardee's website. Although the text in this interactive system is, for some IFs models, often significantly out of date, you may still find the basic description useful to you.
The IFs agriculture model tracks the supply and demand, including imports, exports, and prices, of three agricultural commodities: crops, meat, and fish. Crops have direct food, animal feed, and industrial uses. Meat and fish have only food use. The agriculture model is also where land use dynamics and water use are tracked in IFs, as these are key resources for the agricultural sector.
The structure of the agriculture model is very much like that of the economic model. It combines a growth process with a partial economic equilibrium process using stocks and prices to seek a balance between the demand and supply sides. As in the economic model, no effort is made in the standard adjustment mechanism to obtain a precise equilibrium in any time step. Instead stocks serve as a temporary buffer and the model chases equilibrium over time.
The most important linkages between the agriculture model and other models within IFs are with the economic model. The economic model provides forecasts of average income levels, labor supply, total consumer spending, and agricultural investment, as well as parameters such as the capital elasticity of substitution, all of which are used in the agriculture model. In turn, the agriculture model provides forecasts on agricultural production, imports, exports, and demand for investment, which override the sectoral computations in the economic model. The agriculture model also has important links to the population and health models, using population forecasts and providing forecasts of calorie availability.
- 1 Structure and Agent System: Agriculture
- 2 Dominant Relations: Agriculture
- 3 Agriculture Flow Charts
- 4 Agricultural Production
- 5 Agricultural Demand
- 6 Industrial Crop Demand
- 7 Animal Feed Demand for Crops
- 8 Calorie Demand
- 9 Food Demand for Meat and Fish
- 10 Food Demand for Crops
Structure and Agent System: Agriculture
Partial market equilibrium
Capital, labor, accumulated technology, agricultural commodities, land
Production, loss, consumption, trade, investment
Key Aggregate Relationships
(illustrative, not comprehensive)
Production function with endogenous technological change Price determination
Key Agent-Class Behavior Relationships
(illustrative, not comprehensive)
Household crop, meat, and fish consumption
Industry crop use Livestock producers crop use
Dominant Relations: Agriculture
Agricultural production is a function of the availability of resources, e.g. land, livestock, capital, and labor, as well as climate factors and technology. Technology is most directly seen in the changing productivity of land in terms of crop yields, and in the production of meat relative to the input level of feed grain. The model also accounts for lost production (such as spoilage in the fields or in the food supply chain), which is determined by average income.
Agricultural demand depends on average incomes, prices, and a number of other factors. For example, changing diets can affect the demand for meat, which in turn affects the demand for feed crops. The industrial demand for crops, some of which is directed to the production of biofuels, is also affected by energy prices.
Production and demand, along with existing and desired stocks and historical trade patterns determine the trade in agricultural products. The differences in the supply of crops, meat, and fish (production after accounting for losses and trade) and the demand for these commodities are reflected in shifts in agricultural stocks. Stock shortages feed forward to actual consumption, which is addressed in the population model of IFs. Stocks, particularly changes in stocks, are a key driver of changes in crop prices. Crop prices are also influenced by the returns to agricultural investment and therefore to the basic underlying cost structure. Meat prices are tie to, and track crop prices, while changes in fish prices are driven by changes in fish stocks.
Stocks and stock changes also play a role, along with general economic and agricultural demand growth, in driving the demand for agricultural investment. The actual levels of investment are finalized in the economic model of IFs and subject to constraints there. The investment can be of two types – investment for expanding and maintaining cropland (extensification) and investment for increasing crop yields per unit area (intensification). The expected relative rates of return determine the split.
The final key dynamics addressed in the agriculture model relate to land, livestock, and water. The latter of these is very straightforward, driven only by crop production. Changes in livestock are determined by changes in the amount of available grazing land, changes in the demand for meat, and the ability of countries to meet this demand as reflected in changing stocks.
In the IFs model, land is divided into 5 categories: crop land, grazing land, forest land, ’other’ land, and urban or built-up land. First, changes in urban land are driven by changes in average income and population, and draws from all other land types. Second, the investment in cropland development is the primary driver of changes in cropland, with shifts being compensated by changes in forest and "other" land. Third, changes in grazing land are a function of average income, with shifts again being compensated by changes in forest and "other" land. Finally, conservation policies can influence the amount of forest land, with any necessary adjustments coming from crop and grazing land.
Agriculture Flow Charts
The agriculture model combines a growth process in production with a partial equilibrium process that replaces the agricultural sector in the full-equilibrium economic model unless the user disconnects it. The model represents three agricultural commodities: crop, meat, and fish.
The key equilibrating variables are the stocks of the three commodities. Equilibration works via investment to control capital stock and via prices to control domestic demand.
Specifically, as food stocks rise, investment falls, restraining capital stock and agricultural production, and thus holding down stocks. Also, as stocks rise, prices fall, thereby increasing domestic demand, further holding down stocks. Domestic production and demand also influence imports and exports directly, which further affect stocks.
This section presents several block diagrams that provide an overview of the variables and dynamics of the agricultural model.
Crop ProductionCrop production is most simply a product of the land under cultivation (cropland)
This basic yield function is further subject to a saturation factor that is computed internally to the model̶–investments in increasing yield are subject to diminishing rather than constant returns to scale. Moreover, changes in atmospheric carbon dioxide (CO2) will affect agricultural yields both directly through CO2 and indirectly through changes in temperature and precipitation. Finally, the user can rely on parameters to increase or decrease yield patterns indirectly with a multiplier or to use parameters to control the saturation effect and the direct and indirect effects of CO2 on crop yield.
Meat and Fish ProductionMeat and fish production are represented far more simply than crop p
Fish production has two components: wild catch and aquaculture. The former is based on global catch and the regional share, both of which are specified exogenously. Aquaculture is assumed to continue to grow at a country-specific growth rate; a multiplier can also be used to increase or decrease aquaculture production.
Agricultural demand is divided into crops, meat, and fish. Crop demand is further divided into industrial, animal feed, and human food demand.
Meat and food demand are responsive to calorie demand, which in turn responds to GDP per capita (as a proxy for income). The division of calorie demand between demand for calories from crops and from meat changes in response also to GDP per capita (increasing with income).
When all components of agricultural demand are computed, the price of the food elements of it are checked to assure that the total household demand for food does not exceed a high percentage of total country-level household consumption expenditures.
Industrial Crop DemandIndustrial crop demand (examples would be textile use of cotton or beverage inputs use of barley) is driven primarily by GDP per capita and population. Another important use in recent years has been for
Crop prices also influence total industrial agricultural demand. A maximum per capita demand parameter constrains the total and an exogenous multiplier allows users to alter the total.
Animal Feed Demand for CropsThe total feed demand for the livestock herd is dependent on the weight of the livestock herd and the per weight unit feed requirements. The per unit feed requirements increase with GDP per capita as populations move from meat sources such as chickens to more feed intensive ones such as pork and especially beef. But they also are reduced by change in the efficiency of converting feed to animal weight.
Some of the food requirements of livestock are met by grazing, thereby reducing the feed requirements. The feed equivalent of grazing depends on the amount of grazing land, the productivity of that land (computed in the initial year and highly variable across countries), and grazing intensity (which increases with crop prices).
Finally, the feed demand can be modified directly by the same exogenous crop demand parameter that modifies industrial crop demand.
Calorie DemandCrop use for food and meat demand are both influenced by calorie demand. Total per capita calorie demand is driven by GDP per capita, but can be limited by calorie availability as well as by an exogenous parameter specifying maximum calorie need.
The calculations of demand for meat and food crop determine the ultimate division of calorie sources (shown in other topics). Calories from meat are connected to the demand for meat in tons, with adjustments for the conversion of meat to crop equivalents and then crop equivalents to calories. There is also a limit to the share of calories that can come from meat. The demand for calories from crops is simply the residual obtained by subtracting the demand for calories from meat from the demand for total calories.
Food Demand for Meat and FishMeat and fish demand are only for food. Fish demand is the simpler. It is driven by changes in population, GDP per capita, and fish prices (the elasticity of demand for prices is currently hard-coded in the model and should be made a parameter).
The demand for meat also increases with population and GDP per capita, and falls with increasing meat prices. Additionally, it is also subject to a maximum level per capita. Further it is subject to a constraint that the calories provided by meat cannot exceed an exogenously specified maximum share of total calorie demand; if it does upon first calculation, it is recalculated to be consistent with that share. Finally, meat demand can be modified with a multiplier.
Food Demand for Crops
Food demand is driven by the demand for calories from crops, which is the residual of the total calorie demand and the demand for meat. A conversion factor translates calorie demand into food demand. Crop prices and an elasticity affect the resultant food demand. So too does a constraint on the maximum calories per capita and the size of the population. Finally, the crop demand for food can be modified directly by an exogenous crop demand parameter.