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Bio-economic modelling of decisions under yield and price risk for suckler cow farms

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  • Briner, Simon
  • Finger, Robert

Abstract

Applying a bio-economic whole farm model we assess the impact of price and weather risk as well as different risk management strategies on the variability of the income in Swiss suckler cow production. We consider different on-farm risk management strategies such as the flexible adjustment of herd size, fodder composition and feed stocks, as well as an income insurance. Our results show that without any risk-management income variability is rather high, with coefficient of variation (CV) of income ranging from 26% to 31%. Taking on-farm risk management strategies into account it is possible to reduce income variability significantly (CV 12-15%), but causes only low reductions of mean income levels. Our results also indicate that income insurance is not attractive for farmers Our results thus suggest that in particular promoting better access to markets for feed stuff provides an valuable opportunities for farmers to manage income risks.

Suggested Citation

  • Briner, Simon & Finger, Robert, 2012. "Bio-economic modelling of decisions under yield and price risk for suckler cow farms," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122547, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa123:122547
    DOI: 10.22004/ag.econ.122547
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    Cited by:

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    2. Opeyemi Obafemi Adelesi & Yean-Uk Kim & Heidi Webber & Peter Zander & Johannes Schuler & Seyed-Ali Hosseini-Yekani & Dilys Sefakor MacCarthy & Alhassan Lansah Abdulai & Karin van der Wiel & Pierre C. , 2023. "Accounting for Weather Variability in Farm Management Resource Allocation in Northern Ghana: An Integrated Modeling Approach," Sustainability, MDPI, vol. 15(9), pages 1-21, April.
    3. Djanibekov, Utkur & Finger, Robert, 2018. "Agricultural risks and farm land consolidation process in transition countries: The case of cotton production in Uzbekistan," Agricultural Systems, Elsevier, vol. 164(C), pages 223-235.
    4. Robert Finger & Nadja El Benni, 2012. "A Note on Price Risks in Swiss Crop Production – Empirical Results and Comparisons with other Countries," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 5(1), pages 131-151.

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    Keywords

    Farm Management; Risk and Uncertainty;

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