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Crop genetic diversity, farm productivity and the management of environmental risk in rainfed agriculture

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  • Salvatore Di Falco
  • Jean-Paul Chavas

Abstract

This paper presents an assessment of the linkages between crop genetic diversity, farm productivity and risk management. A flexible moment-based approach is used to analyse the impact of crop genetic diversity on the mean, variance and skewness of yield. Using farm-level data from Sicily (Italy), econometric evidence shows how crop genetic diversity can increase farm productivity and reduce risk exposure. The empirical results indicate that crop genetic diversity can reduce variance, but only if pesticide use is low. Furthermore, high diversity levels can reduce downside risk exposure (e.g. the risk of crop failure). This provides useful insights on the linkages between resilience and crop genetic diversity. Copyright 2006, Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 33 (2006)
Issue (Month): 3 (September)
Pages: 289-314

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Handle: RePEc:oup:erevae:v:33:y:2006:i:3:p:289-314

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Cited by:
  1. Xavier Vollenweider & Salvatore Di Falco & Cathal O’Donoghue, 2011. "Risk preferences and voluntary agri-environmental schemes: does risk aversion explain the uptake of the Rural Environment Protection Scheme?," LSE Research Online Documents on Economics 37585, London School of Economics and Political Science, LSE Library.
  2. Ricome, Aymeric & Chaib, Karim & Ridier, Aude & Kephaliacos, Charilaos & Carpy-Goulard, Francoise, 2012. "The role of cash crop marketing contracts in the adoption of low-input practices in the presence of risk and income supports," 126th Seminar, June 27-29, 2012, Capri, Italy 126222, European Association of Agricultural Economists.
  3. Sanglestsawai, Santi & Rejesus, Roderick M. & Yorobe, Jose M., Jr., 2012. "Production Risk, Farmer Welfare, and Bt Corn in the Philippines," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124237, Agricultural and Applied Economics Association.
  4. Dörschner, Till & Musshoff, Oliver, 2013. "Does the risk attitude influence the farmers' willingness to participate in agri-environmental measures? – A normative approach to evaluate ecosystem services," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156112, German Association of Agricultural Economists (GEWISOLA).
  5. Chavas, Jean-Paul, . "On the economics of agricultural production," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society.
  6. Hardaker, J. Brian & Lien, Gudbrand, 2010. "Probabilities for decision analysis in agriculture and rural resource economics: The need for a paradigm change," Agricultural Systems, Elsevier, vol. 103(6), pages 345-350, July.
  7. Thornton, Philip K. & Lipper, Leslie, 2014. "How does climate change alter agricultural strategies to support food security?:," IFPRI discussion papers 1340, International Food Policy Research Institute (IFPRI).
  8. Mintewab Bezabih & Mare Sarr, 2012. "Risk Preferences and Environmental Uncertainty: Implications for Crop Diversification Decisions in Ethiopia," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 53(4), pages 483-505, December.
  9. Lehmann, Niklaus & Finger, Robert & Klein, Tommy & Calanca, Pierluigi & Walter, Achim, 2013. "Adapting crop management practices to climate change: Modeling optimal solutions at the field scale," Agricultural Systems, Elsevier, vol. 117(C), pages 55-65.
  10. Cecilia Bellora & Jean-Marc Bourgeon, 2014. "Agricultural Trade, Biodiversity Effects and Food Price Volatility," Working Papers hal-00969083, HAL.
  11. Xavier Vollenweider & Salvatore Di Falco & Cathal O’Donoghue, 2011. "The impact of risk on inequality: evidence from the Irish agricultural sector," Grantham Research Institute on Climate Change and the Environment Working Papers 47, Grantham Research Institute on Climate Change and the Environment.
  12. Jesse Tack & David Ubilava, 2013. "The effect of El Niño Southern Oscillation on U.S. corn production and downside risk," Climatic Change, Springer, vol. 121(4), pages 689-700, December.
  13. repec:fpr:export:1340 is not listed on IDEAS
  14. Ligeon, Carel & Jolly, Curtis M. & Bencheva, Nelly & Delikostadinov, Stanko & Puppala, Naveen, 2008. "Production risks in Bulgarian peanut production," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 9(1), January.
  15. 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.
  16. Vollenweider, Xavier & Di Falco, Salvatore & O'Donoghue, Cathal, 2011. "The Impact Of Risk On The Inequality: Evidences From The Irish Agricultural Sector," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115553, European Association of Agricultural Economists.
  17. Asrat, Sinafikeh & Yesuf, Mahmud & Carlsson, Fredrik & Wale, Edilegnaw, 2010. "Farmers' preferences for crop variety traits: Lessons for on-farm conservation and technology adoption," Ecological Economics, Elsevier, vol. 69(12), pages 2394-2401, October.
  18. 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.
  19. Useche, Pilar & Blare, Trent, 2013. "Traditional vs. modern production systems: Price and nonmarket considerations of cacao producers in Northern Ecuador," Ecological Economics, Elsevier, vol. 93(C), pages 1-10.

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