Risk considerations in the economic assessment of low-input crop production techniques: an example from Swiss wheat production
by Robert Finger
International Journal of Agricultural Resources, Governance and Ecology (IJARGE), Vol. 10, No. 1, 2014

Abstract: The role of risks in the adoption of low-input wheat production in Switzerland is investigated using farm-level panel data. Due to governmental support with environmental payments, low-input wheat production is found to be on average more profitable. However, low-input production is also more risky, in particular due to higher yield variability. The here presented analysis reveals that these production risks could become a decisive factor in farmers' adoption decisions of risk-averse farmers if environmental payments were to be reduced or abolished.

Online publication date: Sat, 21-Jun-2014

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