Impacts of Risk in Resource Allocation, Innovation and Adaptation Mechanisms: The Case of Arable Farms in EU (Germany)

Habtamu Ayenew

The implication of risk, as inherent element in the production system, is one of the key elements of decision making in farming. This research project analyzes risk perception of decision makers and explore the impacts on resource allocation decisions, innovation and adoption of technologies, and farmers’ adaptation mechanisms. We use European FADN panel data integrated with weather information and robust econometric estimation procedures employed for analysis.