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Economic performance and risk of farming systems specialized in perennial crops: An analysis of Italian hazelnut production

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  • Zinnanti, Cinzia
  • Schimmenti, Emanuele
  • Borsellino, Valeria
  • Paolini, Giulio
  • Severini, Simone

Abstract

Assessing farm profitability and economic risk is important to support farmers' decisions. Several factors affect yields and product prices, in turn influencing farmers' income level and economic risk. However, the literature has often neglected to explicitly account for the role of product quality. This is particularly important for crops such as hazelnut because farmers' prices vary according to the quality of the harvested product. Furthermore, it seems fundamental to disentangle the role of parameters influencing farm results, noticeably yield, product price and quality. This is because farmers select their risk management tools to satisfy their needs, but these are often suitable for managing the risk of only one of these parameters.

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  • Zinnanti, Cinzia & Schimmenti, Emanuele & Borsellino, Valeria & Paolini, Giulio & Severini, Simone, 2019. "Economic performance and risk of farming systems specialized in perennial crops: An analysis of Italian hazelnut production," Agricultural Systems, Elsevier, vol. 176(C).
    • Handle: RePEc:eee:agisys:v:176:y:2019:i:c:s0308521x19300666
    DOI: 10.1016/j.agsy.2019.102645
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    4. Afriyie-Kraft, Lydia & Zabel, Astrid & Damnyag, Lawrence, 2020. "Index-based weather insurance for perennial crops: A case study on insurance supply and demand for cocoa farmers in Ghana," World Development Perspectives, Elsevier, vol. 20(C).
    5. Meuwissen, Miranda P. M. & Feindt, Peter H. & Spiegel, Alisa & Paas, Wim & Soriano, Bárbara & Mathijs, Erik & Balmann, Alfons & Urquhart, Julie & Kopainsky, Birgit & Garrido, Alberto & Reidsma, Pytrik, 2022. "SURE-Farm approach to assess the resilience of European farming systems," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 1-17.
    6. Carlotta Penone & Elisa Giampietri & Samuele Trestini, 2021. "Hedging Effectiveness of Commodity Futures Contracts to Minimize Price Risk: Empirical Evidence from the Italian Field Crop Sector," Risks, MDPI, vol. 9(12), pages 1-14, December.
    7. Spiegel, Alisa & Severini, Simone & Britz, Wolfgang & Coletta, Attilio, 2020. "Step-by-step development of a model simulating returns on farm from investments: the example of hazelnut plantation in Italy: The example of hazelnut plantation in Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 9(1), April.
    8. Simone Severini & Cinzia Zinnanti & Valeria Borsellino & Emanuele Schimmenti, 2021. "EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.

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