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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.

Suggested Citation

  • Salvatore Di Falco & Jean-Paul Chavas, 2006. "Crop genetic diversity, farm productivity and the management of environmental risk in rainfed agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(3), pages 289-314, September.
  • Handle: RePEc:oup:erevae:v:33:y:2006:i:3:p:289-314
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