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Fungicide use under risk in Swiss wheat production

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  • Nikolaus Gotsch
  • Uri Regev

Abstract

The short‐run effects of fungicide application on economic risk and the effects of risk on fungicide use in Swiss wheat production are empirically explored. A quadratic production function model is developed. With the help of the moment‐based approach, marginal contributions of fungicides (representing controlled inputs) and of rain (representing uncontrolled inputs) to the variances of yield and revenue are analyzed. It is not possible to show risk‐reducing effects of fungicides on yield or revenue. At low rain quantities during the vegetation period fungicides have a statistically significant risk‐increasing effect on revenue. Increasing risk leads Swiss wheat growers to use more fungicide. This increase is statistically significant at higher levels of revenue. For example, when risk is doubled fungicide inputs are raised by 44% at the highest revenue quartile.

Suggested Citation

  • Nikolaus Gotsch & Uri Regev, 1996. "Fungicide use under risk in Swiss wheat production," Agricultural Economics, International Association of Agricultural Economists, vol. 14(1), pages 1-9, April.
    • Handle: RePEc:bla:agecon:v:14:y:1996:i:1:p:1-9
    DOI: 10.1111/j.1574-0862.1996.tb00395.x
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    Cited by:

    1. Karagiannis, Giannis, 1999. "Proportional Profit Taxes And Resource Management Under Production Uncertainty," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-11, December.
    2. Niklas Möhring & Martina Bozzola & Stefan Hirsch & Robert Finger, 2020. "Are pesticides risk decreasing? The relevance of pesticide indicator choice in empirical analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 429-444, May.
    3. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.
    4. Möhring, Niklas & Dalhaus, Tobias & Enjolras, Geoffroy & Finger, Robert, 2020. "Crop insurance and pesticide use in European agriculture," Agricultural Systems, Elsevier, vol. 184(C).
    5. Skevas, Theodoros & Stefanou, Spiro E. & Oude Lansink, Alfons, 2014. "Pesticide use, environmental spillovers and efficiency: A DEA risk-adjusted efficiency approach applied to Dutch arable farming," European Journal of Operational Research, Elsevier, vol. 237(2), pages 658-664.

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