1 of 17

1

​

Nextgen Agricultural System Models and Use Cases:

The Economic Data Challenge

​

John M. Antle

Professor of Applied Economics

Oregon State University

​

tradeoffs.oregonstate.edu

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Alphabet Modeling Talk, Nov 9 2021

​

2 of 17

Themes

Observations and updates from the AgMIP NextGen project

​

The economic data challenge: greenhouse gas mitigation & sustainbility

​

Pathways forward

​

Discussion

​

​

​

2

3 of 17

AgMIP NextGen Project: bridging the gap between data, models and users

  • AgMIP research team + stakeholder workshop (BMGF)

​

​

​

​

​

​

Agricultural Model Inter-comparison and Improvement Project (agmip.org)

4 of 17

4

AgMIP NextGen Project

  • Computational agricultural science can accelerate innovation & improve decision making (simulation experiments vs field experiments)

​

  • Data the most important limitation to model improvement & use

​

  • Knowledge products needed to connect end-users (in science and in decision making) with data and models (demand-driven)

​

  • Private-public partnerships needed to support pre-competitive and competitive science, data, model, and knowledge-product development

​

​

​

​

​

5 of 17

5

These are very hard problems: diversity, heterogeneity

6 of 17

6

These are very hard problems: complexity

“Circular” gain-based system (Basso et al., Ag Systems 2021)

What’s the goal? Profitability vs greenhouse gas mitigation vs sustainability?

7 of 17

7

How to put in the economics and evaluate tradeoffs at field, farm and landscape scales?

Basso and Antle Nature Sustainability 2020

8 of 17

8

Economic analysis of agricultural systems

​

Evaluation paradigm (Heckman JEP 2010)

​

P1: implemented interventions in the environment where they are observed (the problem of internal validity in ex post evaluation)

​

P2: implemented interventions in a different but observable environment

(the problem of external validity in ex post evaluation)

​

P3: evaluation of new interventions in environments never historically observed

(the ex ante evaluation problem).

​

  • P2 and P3 require models satisfying “Marshak’s Maxim”: minimally sufficient structure needed to identify the impact of the intervention

​

  • “P3 is the problem that economic policy analysts have to solve daily. Structural econometrics addresses this problem. The program evaluation approach* does not.”

​

*program evaluation approach = estimation of treatment effects without specification of a structural model based on economic theory

​

​

​

​

​

​

9 of 17

9

Implications for economic analysis of ag systems

Key methodological challenges linked to observability of key phenomena: inputs, outputs & prices (cost of production)

​

  • The identification problem(s)
  • Unobserved heterogeneity
  • Prediction of system performance with new technologies in new environments

​

RCTs (alone) don’t work: diversity, heterogeneity, complexity

​

Solution: combine expert, observational and modeled data

​

Hybrid structural models

    • Process-based models (experimental, observational)
    • Behavioral models (observational, expert)

​

​

​

10 of 17

10

Identification problem in non-experimental data:

​

  • Heckman’s argument for structural models to solve P3 requires strong assumptions of parameter invariance not valid for new technologies or future exogenous variables

​

  • Even if “Marshak’s Maxim” satisfied, economic behavior often leads to failed “identification in the data”, i.e., failure of common support condition required for identification of counterfactuals

​

  • Solution: combine mechanistic models with better data & statistical models to identify structure of counterfactuals

​

​

​

11 of 17

11

Example: “Identification” problem due to lack of common support in non-experimental data

​

​

12 of 17

12

Unobserved heterogeneity? Or bad data?

​

  • In ag systems, many elements of “unobserved heterogeneity” are not time invariant ⇒ fixed-effects estimators do not solve bias problems

​

    • E.g., planting date, soil moisture at planting time that determine crop variety and fertilizer use

​

  • Key problem is inaccurate and incomplete data

​

    • Lack of accurate data on most management inputs and cost of production, and timing of input use

​

​

​

​

​

​

​

13 of 17

13

Prediction of system behavior with new technologies in new environments

​

Two key elements:

​

    • Prediction of exogenous variables “out of sample”

​

      • Use participatory scenario methods (e.g., as in climate research)

​

    • Representation of new technologies

​

      • Use “hybrid structural models” that satisfy Marshak’s Maxim and overcome counterfactual identification problem

​

      • Use better observational data that overcome bias problems from unobserved heterogeneity and incomplete data

​

​

​

​

​

​

​

14 of 17

14

Prediction of system behavior with new technologies in new environments: greenhouse gas mitigation

​

  • Dryland wheat system in PNW
  • Wheat-fallow => wheat-camelina system with no-till cultivation
  • Hybrid model: LCA + DNDC + TOA-MD

​

​

​

​

​

​

Antle et al. Mit. Adapt. Global Change 2018

15 of 17

15

Prediction of system behavior with new technologies in new environments: greenhouse gas mitigation

​

​

​

​

​

​

Antle et al. Mit. Adapt. Global Change 2018

Adoption and impact depend on:

​

  • Crop prices

​

  • Biofuel market development

​

  • Policy support

​

Large uncertainties:

​

  • C rates

​

  • Markets & policy

​

Implications for current policy debate ... are data and modeling tools adequate?

​

AgMIP => need model ensemble

16 of 17

16

Pathways forward: building a new data infrastructure

​

We can envision a system that would meet the needs of private and public use cases ...

​

​

​

​

​

Basso and Antle, Nature Sustainability 2020

But many issues to overcome:

​

  • Data “market” failure
  • Data ownership
  • Voluntary vs mandatory
  • Soft & hard infrastructure

​

​

To avoid data ownership issues, build real-time site-specific data with remotely-sensed and other public data?

17 of 17

17

Thanks for the opportunity to share my work with you!

​

​

References:

​

Antle, J.M. 2019. Data, Economics, and Computational Agricultural Science. American Journal of Agricultural Economics Volume 101, Issue 2, March 2019, Pages 365–382.

​

Antle, J.M., S. Cho, H. Tabatabaie and R. Valdivia. 2018. Economic and Environmental Performance of Dryland Wheat Systems in a 1.5 Degree C World. Mitigation and Adaptation Strategies for Global Change 24(2):165-180.

​

Antle, J., J. Jones and C. Rosenzweig. 2017. Next Generation Agricultural System Data, Models and Knowledge Products: Synthesis and Strategy. Agricultural Systems 155: 179-185.

​

Basso, B. and J.M. Antle. 2020. Digital Agriculture to Design Sustainable Agricultural Systems. Nature Sustainability 3 (April 2020): 254-256.

​

Basso, B, J.W. Jones, J.M. Antle, R.A. Martinez-Feria and B. Verma. 202. Enabling circularity in grain production systems with novel technologies and policy. Agricultural Systems 193 (Oct 2021):

​

Capalbo, S.M., J.M. Antle and C. Seavert. 2017. Next generation data systems and knowledge products to support agricultural producers and science-based policy decision making. Agricultural Systems 155: 191-199.

​

​