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

Nadja El Benni and Robert Finger

No 126758, 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists

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.

Keywords: Crop Production/Industries; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 18
Date: 2012
New Economics Papers: this item is included in nep-agr and nep-rmg
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Where is the risk? Price, yield and cost risk in Swiss crop production (2014)
Journal Article: Where is the risk? Price, yield and cost risk in Swiss crop production (2014)
Journal Article: Where is the risk? Price, yield and cost risk in Swiss crop production (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae12:126758

DOI: 10.22004/ag.econ.126758

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