4.3.3.4. Adaptation and Vulnerability 
Agriculture is an intrinsically adaptive activity. Farming in the region is
  highly decentralized, technologically well-supported, and market-responsive
  and routinely deals with variability on a variety of time scales, arising from
  climatic, biological, and market factors. Operational decisions on the variety
  of crop and animal options are made annually or more frequently; structural
  investment decisions on the farm or orchard, and at processing plants, have
  a currency of a decade or so. Although adjusting production systems to changing
  climate will not be without cost and will require systematic awareness-raising
  and information dissemination (Stafford Smith et al., 1994), it is very likely
  to be a smaller and slower influence than changes arising from markets, prices,
  and technology. Furthermore, gains in production in some areas may offset or
  even exceed costs.  
Adaptation options include plant breeding and cultivar choice, adjustment of
  planting times to realign thermal and vernalization requirements, changes in
  crop sequences, improved soil management, diversification of crops, adoption
  of sustainable farming methods, monitoring and prediction of seasonal climate
  and associated crop and pasture/livestock modeling, and regional monitoring
  and management of drought (Gifford et al., 1996b). Adaptation strategies will
  need to go hand in hand with mitigation strategies to reduce farm system emissions
  of greenhouse gases where there may be significant opportunities to act as a
  carbon sink (Ash et al., 1996) or reduce methane emissions (Howden et al., 1994).
 
In rangeland agriculture, more flexible management responses to enable adjustment
  to fluctuating forage supplies would be required if there were changes in the
  frequency or intensity of extreme events (McKeon et al., 1993). The resulting
  land-use change may have considerable regional socioeconomic impacts-as well
  as raising issues relating to sustainable use of land and water resources. Approaches
  to soil erosion control, pest animal management, weed control, and tree-clearing
  may have to be adjusted as climate changes. Seasonal to interannual climate
  prediction, particularly of rainfall in the ENSO-affected agricultural areas,
  is an adaptation option that offers increasing potential to manage climate variability.
 
Existing trends of diversification and specialization also provide a basis
  for the development of adaptation strategies (Stafford Smith et al., 1994).
  Many potential adaptation options already will exist in particular farming systems
  or particular localities, but their widespread use may require further research
  and coordination at different scales, from land managers to governments (McKeon
  et al., 1993). Adaptations involving changes to crop types, farming systems,
  and adjacent ecosystems may change vulnerability to biological risks; such risks
  also may be minimized by the introduction of less vulnerable species or increased
  diversification in farming systems.  
The existing diversity of uses of Aboriginal land will provide resilience in
  coping with change, though some traditional management approaches such as the
  use of fire and harvesting of native foods may need to be modified. There will
  be a need to develop awareness of climate change among Aboriginal managers,
  and to learn from the traditional Aboriginal management, which has survived
  past climatic changes (Stafford Smith et al., 1994).  
Recent policy changes by the region's governments have shifted a greater part
  of the responsibility for agricultural risk management to farmers and the private
  sector. This shift was effected partly to cut the cost and overheads of government
  payouts to farming communities during droughts and other weather-related disasters
  and partly to promote more economically and environmentally rational decisions
  in land use and farm investment; the goal was to encourage decisions that properly
  account for the long-run risks involved. Although this approach is sound in
  principle and should improve outcomes over the medium term, there probably will
  be many individual farmers who will be unable to appraise, cost, or insure against
  a widespread very extreme event, an increased frequency of extreme events, or
  the generally uncertain effects of climate change. These risks inevitably become
  shared by the whole community and so remain a responsibility for community cooperation
  and government leadership. Few farmers in the region make use of commercial
  crop insurance.  
The capacity of the region's agricultural industry to adapt to climate change
  will depend on the magnitude of change and hence the time frame. Over the next
  few decades-when the warming will be relatively small and the rainfall perhaps
  little changed-adaptation techniques are likely to be sufficient to cope without
  great consequences, and vulnerability will be small. However, as the time horizon
  extends and the climate changes become larger, there is likely to be a trend
  toward reduced production and increasing aridity in many areas (mainly in Australia).
  The greatest vulnerability appears to lie in the context of this long-term outlook,
  in the uncertainty of possible changes in rainfall associated with synoptic
  weather patterns and the ENSO phenomenon, and in possible external market responses
  and biological risks.  
The forestry industry has some degree of vulnerability to climate change but
  may also gain from productivity increases. Greater attention to forest management-particularly
  with respect to seedling establishment, soils, fire risk, and disease-may be
  a required adaptation. In exotic production forestry, the multidecadal crop
  cycle is still sufficiently short to allow some adaptation through choice of
  species and of areas for planting.  
The principal adaptation option for all categories of fisheries is integrated
  management through international and national mechanisms as appropriate and
  including consideration of habitat and all life-cycle stages. The greatest vulnerability
  is expected for freshwater fisheries generally-owing to direct temperature and
  hydrological effects and limited adaptation possibilities in the confines of
  rivers and lakes-and for fisheries dependent on estuaries and mangroves that
  may become subject to sea-level rise, flooding, and pollution by organisms,
  chemicals, and sediment from runoff (IPCC 1996, WG II, Chapter 16).  
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