The impact of risk management on farm productivity is still being debated. Using survey data from French and Hungarian farms, we estimate the impacts of different risk management strategies and portfolios under varying levels of risk on total factor productivity. Results from a multinomial endogenous switching regression model show that the impacts can be positive or negative, depending on the risk management strategies adopted, the structure of the farming system and the probability of risks. The choice of risk management strategies influences the farm’s production costs and the allocation of resources. More complex risk management portfolios tend to have larger negative productivity impacts due to higher costs and the larger amount of resources subtracted from the production activity. Our results have important implications for risk management policies.

中文翻译：

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冒险还是不冒险？风险管理和农场生产力

风险管理对农场生产力的影响仍在争论中。使用来自法国和匈牙利农场的调查数据，我们估计了不同风险管理策略和投资组合在不同风险水平下对全要素生产率的影响。多项内生转换回归模型的结果表明，影响可能是正面的，也可能是负面的，这取决于所采用的风险管理策略、农业系统的结构和风险的可能性。风险管理策略的选择会影响农场的生产成本和资源分配。由于更高的成本和从生产活动中减去的更多资源，更复杂的风险管理组合往往会对生产力产生更大的负面影响。