Relationship between crop diversification and farm efficiency: Does farm size matter?
Toho Hien
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Toho Hien: BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
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Abstract:
Crop diversification has gained interest due to its role in climate change adaptation. While previous studies have focused on farm productivity and income variability, this study examines the relationship between crop diversification and farm performance, considering farm size, socio-economic status and location. Using French Farm Accountancy Data Network data from 2010 to 2022, we analyse 19,822 observations from 3,246 crop-focused farms. Results show that small farms benefit from crop diversification, while large farms face income challenges from diversification. Additionally, crop diversification increases the efficiency of larger farms. The results highlight the need for flexible policies to balance economic viability with environmental objectives.
Keywords: Crop diversification; Shannon Diversity Index; Farm performance; Stochastic frontier; FADN (search for similar items in EconPapers)
Date: 2025-05-16
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Published in European Review of Agricultural Economics, 2025, pp.1-44. ⟨10.1093/erae/jbaf016⟩
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05164428
DOI: 10.1093/erae/jbaf016
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