Work

Does Chemical Use Mitigate or Exacerbate Production Risk? Evidence From Conventional Maize Farms in Northern Italy

Year: 2026

Type: article

Abstract: ABSTRACT This paper examines the relationships between chemical use, namely fertilisers and pesticides, and the production risk of conventional maize in Northern Italy. Using data from the Italian Farm Accountancy Data Network for the period 2015–2020, merged with a station‐based weather dataset, we analyse the production risk through moments of farm‐level yield and revenue probability distributions, namely the mean, variance, negative semi‐variance, skewness and lower partial skewness. Our empirical results, which are robust to potential unobserved confounders, show that higher fertiliser application is correlated with a lower downside risk for per‐hectare revenue and higher spending on pesticides is associated with an increase in expected yield. Furthermore, our results also reveal a negative relationship between crop exposure to extreme heat and the variance of per‐hectare revenue. The findings suggest a potential trade‐off in reducing pesticide use to meet the European Union's agricultural sustainability goals, as lower application of pesticides may lower average production.

Source: Australian Journal of Agricultural and Resource Economics

DOI: 10.1111/1467-8489.70155

Authors: Thi Thanh Thuong Dang, Linda Arata, Paolo Sckokai

Institution: Università Cattolica del Sacro Cuore

Language: English

Topic: Agricultural risk and resilience

Subfield: Soil Science

Field: Agricultural and Biological Sciences

Domain: Life Sciences

SDGs: Zero hunger, Responsible consumption and production

Open Access status: hybrid

Estimated APC paid: $2,710