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Farmer management of production risk on degraded lands: the role of wheat variety diversity in the Tigray region, Ethiopia

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  • Salvatore Di Falco
  • Jean-Paul Chavas
  • Melinda Smale

Abstract

This article investigates the effects of wheat genetic diversity and land degradation on risk and agricultural productivity in less favored production environments of a developing agricultural economy. Drawing production data from a household survey conducted in the highlands of Ethiopia, we estimate a stochastic production function to evaluate the effects of variety richness, land degradation, and their interaction on the mean and the variance of wheat yield. Ethiopia is a center of diversity for durum wheat and farmers manage complex variety mixtures on multiple plots. Econometric evidence shows that variety richness increases farm productivity. Variety richness also reduces yield variability but only for high levels of genetic diversity. Simulations with estimated parameters illustrate how planting more diverse durum wheat varieties on multiple plots contribute to improving farmer's welfare. Copyright 2007 International Association of Agricultural Economists.

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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 36 (2007)
Issue (Month): 2 (03)
Pages: 147-156

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Handle: RePEc:bla:agecon:v:36:y:2007:i:2:p:147-156

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Cited by:
  1. Elisa Gatto & Alba Marino & Guido Signorino, 2013. "Biodiversity and risk management in agriculture:what do we learn from CAP reforms? A farm-level analysis," ERSA conference papers ersa13p805, European Regional Science Association.
  2. Elisa Gatto & Guido Signorino, 2011. "Long-run relationship between crop-biodiversity and cereal production under the CAP reform: evidence from Italian regions," ERSA conference papers ersa11p964, European Regional Science Association.
  3. Knoke, Thomas & Steinbeis, Otto-Emmanuel & Bösch, Matthias & Román-Cuesta, Rosa María & Burkhardt, Thomas, 2011. "Cost-effective compensation to avoid carbon emissions from forest loss: An approach to consider price-quantity effects and risk-aversion," Ecological Economics, Elsevier, vol. 70(6), pages 1139-1153, April.
  4. Finger, Robert & Lazzarotto, Patrick & Calanca, Pierluigi, 2010. "Bio-economic assessment of climate change impacts on managed grassland production," Agricultural Systems, Elsevier, vol. 103(9), pages 666-674, November.
  5. Charles Palmer & Salvatore Di Falco, 2012. "Biodiversity, poverty, and development," Oxford Review of Economic Policy, Oxford University Press, vol. 28(1), pages 48-68, Spring.
  6. Lyman, Nathaniel & Nalley, Lawton Lanier, 2013. "Stochastic Valuation of Hybrid Rice Technology in Arkansas," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142505, Southern Agricultural Economics Association.
  7. Lehmann, Niklaus & Finger, Robert & Klein, Tommy & Calanca, Pierluigi & Walter, Achim, 2012. "Adapting Towards Climate Change: A Bioeconomic Analysis of Winterwheat and Grain Maize," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126483, International Association of Agricultural Economists.
  8. Russell, Noel P. & Omer, Amani A. & Pascual, Unai, 2009. "Technology, preferences and the sustainable intensification of agricultural production," 2009 Conference, August 16-22, 2009, Beijing, China 51743, International Association of Agricultural Economists.
  9. Di Falco, Salvatore & Bezabih, Mintewab & Yesuf, Mahmud, 2010. "Seeds for livelihood: Crop biodiversity and food production in Ethiopia," Ecological Economics, Elsevier, vol. 69(8), pages 1695-1702, June.
  10. Omer, Amani & Pascual, Unai & Russell, Noel, 2010. "A theoretical model of agrobiodiversity as a supporting service for sustainable agricultural intensification," Ecological Economics, Elsevier, vol. 69(10), pages 1926-1933, August.
  11. Finger, Robert, 2012. "Nitrogen use and the effects of nitrogen taxation under consideration of production and price risks," Agricultural Systems, Elsevier, vol. 107(C), pages 13-20.
  12. Müller, Birgit & Quaas, Martin F. & Frank, Karin & Baumgärtner, Stefan, 2011. "Pitfalls and potential of institutional change: Rain-index insurance and the sustainability of rangeland management," Ecological Economics, Elsevier, vol. 70(11), pages 2137-2144, September.
  13. Finger, Robert, 2011. "Reductions of Agricultural Nitrogen Use Under Consideration of Production and Price Risks," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114356, European Association of Agricultural Economists.
  14. Krishna, Vijesh V. & Zilberman, David & Qaim, Matin, 2009. "GM Technology Adoption, Production Risk and On-farm Varietal Diversity," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49173, Agricultural and Applied Economics Association.
  15. Negassa, Asfaw & Hellin, Jonathan & Shiferaw, Bekele A., 2012. "Determinants of Adoption and Spatial Diversity of Wheat Varieties on Household Farms in Turkey," Socioeconomics Program Working Papers 147106, CIMMYT: International Maize and Wheat Improvement Center.
  16. Kwikiriza, Norman & Katungi, Enid & Horna, Daniela, 2011. "Estimating the role of spatial varietal diversity on crop productivity within an abatement framework: The case of banana in Uganda," IFPRI discussion papers 01051, International Food Policy Research Institute (IFPRI).
  17. Tveteras, Ragnar & Flaten, Ola & Lien, Gudbrand D., 2008. "Production risk in multi-output industries: estimates from Norwegian dairy farms," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43958, European Association of Agricultural Economists.
  18. Krishna, Vijesh V. & Zilberman, David & Qaim, Matin, 2009. "Transgenic technology adoption and on-farm varietal diversity," 2009 Conference, August 16-22, 2009, Beijing, China 51750, International Association of Agricultural Economists.
  19. Lehmann, Niklaus & Finger, Robert, 2012. "Optimizing whole-farm management considering price and climate risks," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122533, European Association of Agricultural Economists.
  20. Lauriane MOUYSSET (CERSP, UMR 7204, CNRS-MNHN-UPMC, SADAPT, INRA, UMR 1048) & Luc DOYEN (CERSP, UMR 7204, CNRS-MNHN-UPMC, GREThA, CNRS, UMR 5113) & Fréderic JIGUET (CERSP, UMR 7204, CNRS-MNHN-UPMC), 2012. "How does the economic risk aversion affect biodiversity?," Cahiers du GREThA 2012-03, Groupe de Recherche en Economie Théorique et Appliquée.
  21. Kiros Hadgu & Walter Rossing & Lammert Kooistra & Ariena Bruggen, 2009. "Spatial variation in biodiversity, soil degradation and productivity in agricultural landscapes in the highlands of Tigray, northern Ethiopia," The Science, Sociology and Economics of Food Production and Access to Food, Springer, vol. 1(1), pages 83-97, February.

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