Title: Risk considerations in the economic assessment of low-input crop production techniques: an example from Swiss wheat production
Authors: Robert Finger
Addresses: Agricultural Economics and Rural Policy Group, Wageningen University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands
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.
Keywords: low-input crop production; production risks; economic assessment; yield variability; price variability; Switzerland; risk assessment; wheat production; government support; environmental payments; risk-averse farmers.
International Journal of Agricultural Resources, Governance and Ecology, 2014 Vol.10 No.1, pp.63 - 77
Accepted: 04 Nov 2013
Published online: 24 May 2014 *