The level of natural hedge, i.e. the (negative) correlation between price and yield levels, is an important determinant for farmers’ income risks and their demand for risk management instruments. The natural hedge is often approximated with correlations observed at more aggregated levels, e.g....

Risk management strategies are of increasing importance in agriculture. An important question is, what type of risk management strategies are required to reduce farmers’ income risks. Applying a variance decomposition approach using data of more than 3000 Swiss farms over a five year time...

Risk management strategies are of increasing importance in agriculture. An important question is what type of risk management strategies are required to reduce farmers’ income risks? Applying a variance decomposition approach using data from more than 3,000 Swiss farms over a five-year period,...

type="main" xml:id="jage12069-abs-0001" <title type="main">Abstract</title> <p>Increasing concerns with income risks in agriculture have led to discussions on the introduction of an Income Stabilisation Tool (IST) in Europe. In this note, we extend existing evaluations of the IST by investigating the potential effect of the...</p>

We investigate biases in farm-level yield risk analysis caused by data aggregation from the farm-level to regional and national levels using the example of Swiss wheat and barley yields. The estimated yield variability decreases significantly with increasing level of aggregation, with crop yield...

Production and price risks affect optimal nitrogen use as well as the effects of nitrogen taxation if farmers’ risk aversion is taken into account. We apply a bio-economic model to investigate the influence of risk aversion on nitrogen use in Swiss maize production. Income risks for farmers...

A model that integrates biophysical simulations in an economic model is used to analyze the impact of climate change on crop production. The biophysical model simulates future plant-management-climate relationships and the economic model simulates farmers' adaptation actions to climate change...

The adequate representation of crop response functions is crucial for agri-environmental modeling and analysis. So far, the evaluation of such functions focused on the comparison of different functional forms. The perspective is expanded in this article by considering an alternative regression...