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

This 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 were 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 studied countries. According to French farmers' opinion, the most important wheat yield determinants at national level are seasonal weather and soil quality; while Hungarians pointed 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 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.