The impact of cereal crop diversification on farm labor productivity under changing climatic conditions

• Published in: Ecological economics 2024-09, Vol.223, p.108241, Article 108241
• Main Authors: Eder, Andreas, Salhofer, Klaus, Quddoos, Abdul
• Format: Article
• Language: English
• Subjects: Cereal crop diversity; Climate change; Labour productivity; Resilience; Weather shocks
• ISSN: 0921-8009
• DOI: 10.1016/j.ecolecon.2024.108241

Climate change poses a serious threat to the stability of national and global food systems. Agricultural productivity growth is needed to meet increasing global food demand and land use competition. Based on a 2009–2012 panel of 133 cereal farms in Austria, we evaluate if cereal crop diversification can increase both farm labor productivity and resilience to adverse climatic conditions. To identify the productive implications of the interaction between cereal crop diversity and climatic conditions, we apply a partial correlated random effects model accounting for potential endogeneity. Our results indicate that diversified farms are more resilient to reductions in growing season rainfall, but in years with higher rainfall levels diversified farms tend to be less productive. We find that projected climate change induced temperature increases are associated with a considerable productivity decline that cannot be attenuated by cereal crop diversification. •Effect of cereal crop diversity on farm productivity depends on climatic conditions.•Diversified farms are more resilient to reductions in growing season rainfall.•In years with higher rainfall levels diversified farms tend to be less productive.•Higher average growing season temperatures tend to reduce farm labor productivity.•Cereal diversification cannot attenuate temperature induced productivity declines.