Economies of diversification and stochastic dominance analysis in French mixed sheep farms. (10th April 2022)

• Record Type: Journal Article
• Authors: Minviel, Jean Joseph; Benoit, Marc
• Is Part Of: Agricultural and resource economics review. Volume 51:Number 1(2022)
• Page Start: 156
• Page End: 177
• Publication Date: 2022-04-10
• Subjects: downside risk exposure -- economic resilience -- economies of diversification -- Massif Central -- mixed sheep farms -- SERF analysis -- stochastic dominance; D81 -- L25 -- Q12; Sustainable agriculture -- Periodicals; Sustainable agriculture -- United States -- Periodicals; Natural resources -- Periodicals; Agriculture -- Economic aspects -- Periodicals; Rural development -- Periodicals; 338.10974
• DOI: 10.1017/age.2021.26
• Languages: English
• ISSNs: 1068-2805

Abstract

Abstract: Farm diversification is mainly driven by risk mitigation effects and economic gains related to complementarities between production activities. By combining these two aspects, we investigate diversification economies in a sample of French mixed sheep farming systems and rank these systems using stochastic dominance criteria. Partially diversified systems (Sheep-Grass, Sheep-Crop, Sheep-Landless) and fully diversified systems (Sheep-Grass-Crop-Landless) were evaluated. We find a high degree of diversification diseconomies in the sheep farming systems considered. The results also indicate that the fully diversified system is driven by its risk-reducing effects (including downside risk exposure) and that Sheep-Crop is the dominant system in terms of risk-adjusted returns.