Inderscience Publishers

Risk considerations in the economic assessment of low–input crop production techniques: an example from Swiss wheat production

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The role of risks in the adoption of low–input wheat production in Switzerland is investigated using farm–level panel data. Due to governmental support with environmental payments, low–input wheat production is found to be on average more profitable. However, low–input production is also more risky, in particular due to higher yield variability. The here presented analysis reveals that these production risks could become a decisive factor in farmers' adoption decisions of risk–averse farmers if environmental payments were to be reduced or abolished.

Keywords: low–input crop production, production risks, economic assessment, yield variability, price variability, Switzerland, risk assessment, wheat production, government support, environmental payments, risk–averse farmers

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