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“Cognitive mapping : a method to elucidate and present farmers' risk perception”. van Winsen F, de Mey Y, Lauwers L, Van Passel S, Vancauteren M, Wauters E, Agricultural Systems 122, 42 (2013). http://doi.org/10.1016/J.AGSY.2013.08.003
Abstract: Assumptions on the perceptions of risks, made in agricultural economics literature, are recognized to be over-simplistic. For example most studies assume that risks are independent and static, while in reality most risks are interlinked and dynamic. We propose an alternative method to identify and present risk perception, closer to the actual comprehension of risk by farmers. Grounded theory is used to investigate the perceptions of risk by farmers while avoiding prior assumptions. Main findings are: (i) farmers have difficulty to rank or score probability and impact of risks in a (semi)quantitative manner; (ii) farmers attach different meanings to risk, when the focus shifts between, uncertain event, probability or value at stake and; (iii) farmers perceive risks as being interrelated. Based on these findings, we propose that farmers' risk perception can be best understood as a network of interrelated notions of uncertain events, their effects and uncertain outcomes. Furthermore, cognitive mapping is suggested to elucidate and present these networks. We test cognitive mapping, exploring dairy farmers' risk perception, and demonstrate the appropriateness of this methodology for capturing the complexity and context of perceived risk. Advantages are: (i) the qualitative approach, (ii) the focus on interrelations and context, (iii) the applicability at farm level, (iv) the farmer-driven rather than researcher-driven perspective, and (v) the elucidation of the polyvalent use of the risk concept. Cognitive maps can be used as a communication tool, a risk management tool, and a tool to stimulate bi-directional learning amongst farmers, policy makers, researchers and extension agents. (C) 2013 Elsevier Ltd. All rights reserved.
Keywords: A1 Journal article
Impact Factor: 2.571
Times cited: 27
DOI: 10.1016/J.AGSY.2013.08.003
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“Determinants of risk behaviour : effects of perceived risks and risk attitude on farmer's adoption of risk management strategies”. van Winsen F, de Mey Y, Lauwers L, Van Passel S, Vancauteren M, Wauters E, Journal Of Risk Research 19, 56 (2016). http://doi.org/10.1080/13669877.2014.940597
Abstract: The importance of risk perception and risk attitude for understanding individual's risk behaviour are independently well described in literature, but rarely combined in an integrated approach. In this study, we propose a model assuming the choice to implement certain risk management strategies to be directly driven by both perceptions of risks and risk attitude. Other determinants influence the intention to apply different risk strategies mainly indirectly, mediated by risk perception and risk attitude. This conceptual model is empirically tested, using structural equation modelling, for understanding the intention of farmers to implement different common risk management strategies at their farms. Data are gathered in a survey completed by 500 farmers from the Flanders region in Belgium, investigating attitudes towards farming, perceived past exposure to risk, socio-demographic characteristics, farm size, perceptions of the major sources of farm business risk, risk attitudes and the intention to apply common risk management strategies. Our major findings are: (i) perception of major farm business risks have no significant impact on the intention of applying any of the risk strategies under study, (ii) risk attitude does have a significant impact. Therefore, rather than objective risk faced and the subjective interpretation thereof, it is the general risk attitude that influence intended risk strategies to be implemented. A distinction can be made between farmers willing to take risk, who are more inclined to apply ex-ante risk management strategies and risk averse farmers who are less inclined to implement ex-ante risk management strategies but rather cope with the consequences and diminish their effects ex-post when risks have occurred.
Keywords: A1 Journal article; Sociology; Engineering Management (ENM)
Impact Factor: 1.34
Times cited: 25
DOI: 10.1080/13669877.2014.940597
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“Farm household risk balancing : empirical evidence from Switzerland”. de Mey Y, Wauters E, Schmid D, Lips M, Vancauteren M, Van Passel S, European Review Of Agricultural Economics 43 (2016). http://doi.org/10.1093/ERAE/JBV030
Abstract: Empirical evidence on household risk balancing behaviour is presented by estimating a fixed effects seemingly unrelated regression model using Swiss Farm Accountancy Data Network data. We find that in response to changes in expected business risks, Swiss farm households not only make strategic farm financial risk decisions (original risk balancing), but also make strategic off-farm decisions (household risk balancing) by altering their share of off-farm income and relative consumption. Small farms appear to make more use of household risk balancing strategies whereas large farms conversely make more use of the original risk balancing strategy.
Keywords: A1 Journal article; Economics
Impact Factor: 1.6
Times cited: 15
DOI: 10.1093/ERAE/JBV030
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“Investigating market power in the Belgian pork production chain”. Maes D, Vancauteren M, Van Passel S, Review of Agricultural, Food and Environmental Studies 100, 93 (2019). http://doi.org/10.1007/s41130-019-00096-6
Abstract: Belgian pork production has faced stagnating prices for decades. It remains unclear whether excessive market power from slaughterhouses or meat retailers has played a role in this trend. While market power studies can reveal some of the market dynamics in this setting, this type of research has not yet been applied to the Belgian pork market. The present paper investigates oligopolies and oligopsonies in the pork production sector. We build a new model that focuses on market power dynamics in the market for live pigs and distinguishes horizontal and vertical market power parameters, both for pig farmers and for slaughterhouses. The results follow from an empirical application using unique slaughterhouse data for 2001–2015. The results indicate that the farmers benefit from a significant power advantage in the live pig market, when very modest price demands are taken as a reference. The final market price of live pigs approaches the price requested by the farmers. On the other hand, the measured vertical market power also suggests that a pig farmer does not receive the (modest) full-wage-based salary. The market power of the slaughterhouses is also limited. Market power as a result of collusion—that is, horizontal market power—is present, but is not strong. However, there are significant differences between the slaughterhouses in terms of mark-up on the input prices. These differences reflect differences in company strategy, and this diversity further reduces the possibility to create sector-wide collusive behaviour.
Keywords: A1 Journal Article; Engineering Management (ENM) ;
DOI: 10.1007/s41130-019-00096-6
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“How do western European farms behave and respond to climate change? A simultaneous irrigation-crop decision model”. Vanschoenwinkel J, Vancauteren M, Van Passel S, Climate change economics 13, 2250009 (2022). http://doi.org/10.1142/S2010007822500099
Abstract: Most farm adaptations are reactive actions that run the risk of locking farm systems into suboptimal long-term trajectories. This is especially the case with regard to water management as water scarcity will be aggravated by climate change. This paper looks into farm irrigation choices in combination with crop choices because a proper crop choice has the potential to reduce water requirements. It proposes an extended Ricardian model to capture multiple adaptation decisions explicitly. The new simultaneous irrigation-crop farm decision model uses spatially detailed farm-level data of over 18,000 European farms on irrigation and seven different crop choices. The analysis shows that larger farmers and farmers in less water-scarce regions that use irrigation are more sensitive to temperature increases than rain-fed agriculture. This might be explained by the fact that these farmers do not experience the real cost of water scarcity because of which they take less efficient decisions.
Keywords: A1 Journal article; Economics; Engineering Management (ENM)
DOI: 10.1142/S2010007822500099
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