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The determinants of wheat yields: the role of sustainable innovation, policies and risks in France and Hungary

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Abstract

The report presents the results of a survey conducted on 700 wheat farmers in France and Hungary. The survey aimed to single out the most critical elements at the base of wheat productivity, collecting information for the growing seasons 2010/2011, 2011/2012 and 2012/2013. Two types of data are obtained: farmers’ opinions on the determinants of wheat productivity; quantitative data on wheat output, production factors, marketing strategies, damages, and field and risk management practices. Through descriptive statistics, the report revealed important and significant differences between the countries. According to French farmers' opinion, the most important wheat yield determinants at national level are seasonal weather and soil quality; while Hungarians addressed climate change and seasonal weather. At the farm level, the high prices of inputs and the low wheat market prices are considered the most constraining factors in both countries. Wheat yields are positively correlated to higher agro-chemicals use in Hungary and to additional days of labour in France. The adoption of precision farming provides 7-12% higher yields in both countries, while yield gains from conservation agriculture and IPM are found in partial adopters. In both countries, the most frequently adopted innovation to increase wheat yields and grains' quality are new wheat varieties, however farmers’ willingness to adopt genetically modified wheat varieties is opposite: positive in France and negative in Hungary. Finally, both farmers perceive market risks as more detrimental than natural disasters. While crop insurance is the most adopted tool to deal with natural risks in both countries, French farmers adopt diversification strategies more frequently than Hungarians to deal with market risks.

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  • Mauro Vigani & Manuel Gomez-Barbero & Emilio Rodríguez-Cerezo, 2015. "The determinants of wheat yields: the role of sustainable innovation, policies and risks in France and Hungary," JRC Research Reports JRC95950, Joint Research Centre.
  • Handle: RePEc:ipt:iptwpa:jrc95950
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    1. Vigani, M. & Berry, R., 2018. "Farm economic resilience, land diversity and environmental uncertainty," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276979, International Association of Agricultural Economists.
    2. Mauro Vigani & Jonas Kathage, 2019. "To Risk or Not to Risk? Risk Management and Farm Productivity," American Journal of Agricultural Economics, John Wiley & Sons, vol. 101(5), pages 1432-1454, October.

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    More about this item

    Keywords

    Wheat; Productivity; Yield; Innovation; Risk management; Sustainability; European Union; Agricultural policies.;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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