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Is an integrated farm more resilient against climate change? A micro-econometric analysis of portfolio diversification in African agriculture

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  • Seo, S. Niggol

Abstract

This paper examines whether an integrated farm that owns both crops and livestock is more resilient under global warming than a specialized farm in crops. Using around 9000 farm surveys across Africa, we explore how farmers choose one of the farm types and how the net revenue of each type varies across the range of climate in Africa. The results indicate that an integrated farm increases in number while a specialized farm decreases across Africa under climate predictions for 2060. The relative profitability of each system against each other also changes. An integrated farm becomes relatively more profitable over specialized farms half a century from now. The impacts of climate change on integrated farms range from 9% loss to 27% gain depending on climate scenarios. Behavioral models can capture portfolio diversification benefits that agro-economic models cannot measure.

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  • Seo, S. Niggol, 2010. "Is an integrated farm more resilient against climate change? A micro-econometric analysis of portfolio diversification in African agriculture," Food Policy, Elsevier, vol. 35(1), pages 32-40, February.
    • Handle: RePEc:eee:jfpoli:v:35:y:2010:i:1:p:32-40
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    17. Lybbert, Travis J. & Sumner, Daniel A., 2012. "Agricultural technologies for climate change in developing countries: Policy options for innovation and technology diffusion," Food Policy, Elsevier, vol. 37(1), pages 114-123.
    18. Junfei Bai & Zhigang Xu & Huanguang Qiu & Haiyan Liu, 2015. "Optimising seed portfolios to cope ex ante with risks from bad weather: evidence from a recent maize farmer survey in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), pages 242-257, April.
    19. Provost, Jennifer & Rosero, Gabriel & Brümmer, Bernhard & Schlecht, Eva, 2022. "To sell, not to sell, or to quit: Exploring milk producers’ approaches after a supply chain disruption in Northwest Cameroon," World Development, Elsevier, vol. 150(C).
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    21. Etwire, Prince Maxwell, 2020. "The impact of climate change on farming system selection in Ghana," Agricultural Systems, Elsevier, vol. 179(C).
    22. Sitko, Nicholas J. & Scognamillo, Antonio & Malevolti, Giulia, 2021. "Does receiving food aid influence the adoption of climate-adaptive agricultural practices? Evidence from Ethiopia and Malawi," Food Policy, Elsevier, vol. 102(C).
    23. Uthpal Kumar & Saskia Werners & Sharmishtha Roy & Sadia Ashraf & Long Phi Hoang & Dilip Kumar Datta & Fulco Ludwig, 2020. "Role of Information in Farmers’ Response to Weather and Water Related Stresses in the Lower Bengal Delta, Bangladesh," Sustainability, MDPI, vol. 12(16), pages 1-24, August.
    24. Seo, S. Niggol & McCarl, Bruce A. & Mendelsohn, Robert, 2010. "From beef cattle to sheep under global warming? An analysis of adaptation by livestock species choice in South America," Ecological Economics, Elsevier, vol. 69(12), pages 2486-2494, October.
    25. Emanuele Massetti & Steven Van Passel & Camila Apablaza, 2018. "Is Western European Agriculture Resilient to High Temperatures?," CESifo Working Paper Series 7286, CESifo.

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