Where is the risk? Price, yield and cost risk in Swiss crop production

N. El Benni, R. Finger

Research output: Contribution to conferenceConference paperAcademicpeer-review

Abstract

Risk management strategies are of increasing importance in agriculture. An important question is, what type of risk management strategies are required to reduce farmers’ income risks. Applying a variance decomposition approach using data of more than 3000 Swiss farms over a five year time period, this paper quantifies the direct and indirect effects of yields, prices and costs on net revenue variability at the farm-level. We find that costs play only a minor role in determining income variability but price and yield risks are of outmost importance and very crop-specific. For instance, price risks dominate for intensive wheat and sugar beet producer; while corn and barley producer tend to suffer more form production risks. Group comparisons and logistic regressions results show that more intensively producing farms tend to suffer more from price risk, while yield risks are dominant for less intensive producers.
Original languageEnglish
Publication statusPublished - 2012
EventInternational Association of Agricultural Economists>2012 Conference, August 18-24, 2012, Foz do Iguaçu, Brazil -
Duration: 18 Aug 201224 Aug 2012

Conference/symposium

Conference/symposiumInternational Association of Agricultural Economists>2012 Conference, August 18-24, 2012, Foz do Iguaçu, Brazil
Period18/08/1224/08/12

Fingerprint

Dive into the research topics of 'Where is the risk? Price, yield and cost risk in Swiss crop production'. Together they form a unique fingerprint.

Cite this