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Farmers’ Adoption of Extensive Wheat Production - Determinants and Implications

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  • Finger, Robert
  • El Benni, Nadja

Abstract

Using FADN data, we analyse farmers’ adoption decisions with respect to extensive wheat production, which is supported in Switzerland since 1992 with an ecological direct payment scheme. It shows that first year adoption was mainly characterized by free-riding effects. In particular small farms with low levels of input use and wheat yields adopted extensive wheat production. If later adoption phases are included, these differences in farm size between adopters and non-adopters vanish. However, the level of wheat yields is still an important adoption determinant. Less intensive producing farms (with lower yield levels) are much more likely to adopt extensive wheat production. In contrast, more intensively producing farms, i.e. those farms that may actually harm the environment, usually not adopt extensive wheat production. Thus, aggregated environmental effects of this programme may be limited and the effectiveness of voluntary participation in agricultural environmental protection programmes should be re-considered.

Suggested Citation

  • Finger, Robert & El Benni, Nadja, 2011. "Farmers’ Adoption of Extensive Wheat Production - Determinants and Implications," 122nd Seminar, February 17-18, 2011, Ancona, Italy 98979, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa122:98979
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    File URL: http://purl.umn.edu/98979
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    References listed on IDEAS

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    1. Doris Läpple, 2010. "Adoption and Abandonment of Organic Farming: An Empirical Investigation of the Irish Drystock Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 697-714.
    2. Barreiro-Hurlé, Jesús & Espinosa-Goded, Maria & Dupraz, Pierre, 2008. "Does Intensity Of Change Matter? Factors Affecting Adoption In Two Agri-Environmental Schemes," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6458, European Association of Agricultural Economists.
    3. Maria Espinosa-Goded & Jesús Barreiro-Hurlé & Eric Ruto, 2010. "What Do Farmers Want From Agri-Environmental Scheme Design? A Choice Experiment Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 259-273.
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    Citations

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    Cited by:

    1. Robert Finger & Niklaus Lehmann, 2012. "The influence of direct payments on farmers’ hail insurance decisions," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 343-354, May.
    2. Duesberg, Stefanie & Upton, Vincent & O'Connor, Deirdre & Dhubháin, Áine Ní, 2014. "Factors influencing Irish farmers' afforestation intention," Forest Policy and Economics, Elsevier, vol. 39(C), pages 13-20.
    3. El Benni, Nadja & Finger, Robert, 2014. "Where is the risk? Price, yield and cost risk in Swiss crop production," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 95(03), pages 299-326, September.
    4. Finger, Robert, 2012. "How strong is the “natural hedge”? The effects of crop acreage and aggregation levels," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122538, European Association of Agricultural Economists.
    5. Finger, Robert & Lehmann, Niklaus, 2011. "Do Direct Payments Influence Farmers' Hail Insurance Decisions?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114355, European Association of Agricultural Economists.
    6. Niklaus Lehmann, 2011. "Regional Crop Modeling: How Future Climate May Impact Crop Yields in Switzerland," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 4(1), pages 269-291.

    More about this item

    Keywords

    Extensive wheat production; agri-environmental programme; adoption analysis; Switzerland; Agricultural and Food Policy; Farm Management; Q1; Q5;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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