This paper presents the first empirical evidence on farm household risk balancing behavior, i.e., making strategic off-farm decisions in response to changes in expected business risk. Firstly, using survey data combined with Flemish FADN data, we construct a psychometric household risk balancing...

This paper presents the first empirical evidence on household risk balancing behavior, i.e., strategic off-farm decisions in response to changes in expected business risk. Using Swiss FADN data, we estimate a fixed effects seemingly unrelated regression model to analyze how farm households...

In eastern Switzerland there is a substantial weather risk during the wheat harvest. Increasing the number of available combine harvesters reduces harvest losses due to bad weather conditions, whilst increasing machinery costs. Simulating weather risk, we analyse harvest losses and machinery...