Most research on the agricultural impacts of climate change has focused on the major annual crops, yet perennial cropping systems are less adaptable and thus potentially more susceptible to damage. In regions where perennial crops are economically and culturally important, improved assessments of yield responses to future climate are needed to prioritize adaptation strategies. These impact assessments, in turn, must rely on climate and crop models that contain often poorly defined uncertainties. We evaluated the impact of climate change on six major perennial crops in California: wine grapes, almonds, table grapes, oranges, walnuts, and avocados. Outputs from multiple climate models were used to evaluate climate uncertainty, while multiple statistical crop models, derived by resampling historical databases, were used to address crop response uncertainties. We find that, despite these uncertainties, climate change in California is very likely to put downward pressure on yields of almonds, walnuts, avocados, and table grapes by 2050. Without CO2 fertilization or adaptation measures, projected losses range from 0 to >40% depending on the crop and the trajectory of climate change. Climate change uncertainty generally had a larger impact on projections than crop model uncertainty, although the latter was substantial for several crops. Opportunities for expansion into cooler regions were identified, but this adaptation would require substantial investments and may be limited by non-climatic constraints. Given the long time scales for growth and production of orchards and vineyards (30 years), climate change should be an important factor in selecting perennial varieties and deciding whether and where perennials should be planted.

Access to an adequate energy supply at reasonable cost is crucial for sustained economic growth. Unfortunately, oil prices and the need to import from politically unstable countries lowers the reliability of the US energy supply and hinders economic development. Although biofuels have been identified as an important component of the national strategy to decrease US dependence on foreign oil, the ability to sustain a rapid expansion of biofuel production capacity raises new research and policy issues. This document seeks to identify the most critical of these issues to help inform the policy development process. The goal is to enhance the long-term economic and environmental viability of the biofuel industry and its positive impact on agriculture, rural communities, and national security.

In this report, we seek to meet the specific objectives of the first phase of China's study. The key goal of this study in China is to prepare evidence-based policy advice concerning the implications and opportunities for fruit producers during a period of a boom in horticulture demand and a restructuring of downstream markets and commercialization. Hence, the research in Phase 1 concentrates on identifying the determinants and consequences of restructuring of the horticulture sector in China. The analysis is conducted on three levels: macro (the policy issues and the national business environment), meso (the different chain segments and villages) and micro (household level). Because of space limitation and timing of the research the linkages between the first two levels are analysed in this report. The micro study will be carried out during the upcoming phase.

The research for this report is structured into two parts: a.) the national-meso level and b.) the local-meso level. In part 1 key policy issues, broad fruit supply chain issues and key stakeholders are identified. This part is intended to set the stage for the analysis done in part 2 and the forthcoming household study. The goal of part 1 is to analyze the evolution of China's restructured supply chain at a national level over a period of the past 10 or more years. With this background, the objective of part 2 is to study in more depth the restructuring changes that are occurring inside China's rural communities and within the markets. It also will provide context for the forthcoming micro-level study. In particular, we primarily study how marketing supply chains are operating and evolving within villages; inside wholesale markets and inside supermarkets.