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The role of risk aversion and labor constraints in the adoption of low input practices supported by the CAP green payments in cash crop farms

Author

Listed:
  • Aude Ridier

    (AGROCAMPUS OUEST, UMR1302, F-35000 RENNES, France)

  • Mohamed Ben El Ghali
  • G. Nguyen
  • Charilaos Kephaliacos

Abstract

Since the late 1980s, many alternative practices have been proposed to European farmers to reduce pesticide and input use in general. These practices have been promoted by agro-environmental contracts signed between individual farmers and the European Union and by which farmers engage themselves in changing their practices. The adoption rate of these measures has remained very low in many European regions particularly in Southwestern France. This article aims at stressing the role played by risk attitude and labor constraint in farmers’ adoption decision. After presenting a static theoretical model which assesses the impact of labor constraints and risk attitude on the level of adoption of low input practices supported by agro-environmental contracts, the article proposes a numerical application based on a mathematical programming risk-model implemented on two typical crop farms in South-western France. Three kinds of contracts (no tillage, long rotation, lower pest treatments) are tested, two of them (long rotation and lower pest treatments) aiming at directly reducing input use. The results show that, despite the overall positive impact of alternative practices under contract on environment and farmers’ income, increased yield variability under positive risk aversion and larger labor requirements are actual barriers to adoption.

Suggested Citation

  • Aude Ridier & Mohamed Ben El Ghali & G. Nguyen & Charilaos Kephaliacos, 2013. "The role of risk aversion and labor constraints in the adoption of low input practices supported by the CAP green payments in cash crop farms," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 94(2), pages 195-219.
    • Handle: RePEc:rae:jourae:v:94:y:2013:i:2:p:195-219
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    Cited by:

    1. Dupré, Marie & Blazy, Jean-Marc & Michels, Thierry & Le Gal, Pierre-Yves, 2021. "Supporting policymakers in designing agricultural policy instruments: A participatory approach with a regional bioeconomic model in La Réunion (France)," Land Use Policy, Elsevier, vol. 100(C).
    2. Kleftodimos, Georgios & Gallai, Nicola & Rozakis, Stelios & Képhaliacos, Charilaos, 2021. "A farm-level ecological-economic approach of the inclusion of pollination services in arable crop farms," Land Use Policy, Elsevier, vol. 107(C).
    3. Mohamed Ghali & Maha Ben Jaballah & Nejla Ben Arfa & Annie Sigwalt, 2022. "Analysis of factors that influence adoption of agroecological practices in viticulture," Review of Agricultural, Food and Environmental Studies, Springer, vol. 103(3), pages 179-209, September.
    4. Jing Zhang & Jingchun Wang & Yafei Li & Yueying Mu, 2025. "Time Allocation Effect: How Does the Combined Adoption of Conservation Agriculture Technologies Affect Income?," Land, MDPI, vol. 14(5), pages 1-24, April.
    5. Hashmiu, Ishmael & Agbenyega, Olivia & Dawoe, Evans, 2022. "Determinants of crop choice decisions under risk: A case study on the revival of cocoa farming in the Forest-Savannah transition zone of Ghana," Land Use Policy, Elsevier, vol. 114(C).
    6. Aleksandra Pawłowska & Renata Grochowska, 2021. "“Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities," Energies, MDPI, vol. 14(24), pages 1-15, December.
    7. Arfa, Nejla Ben & Ghali, Mohamed, 2024. "High environmental value (HEV) certification: sharing of costs and risks among value-chain stakeholders," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 15(02), June.
    8. Denantes, Julia & Jacquot, Anne-Lise & Carof, Matthieu & Ropars-Collet, Carole & Ridier, Aude, 2025. "Work in agriculture: A blind spot in reducing pesticide use on dairy farms?," Agricultural Systems, Elsevier, vol. 224(C).

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    Keywords

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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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