Economic performance and risk of farming systems specialized in perennial crops: An analysis of Italian hazelnut production

Abstract Assessing farm profitability and economic risk is important to support farmers' decisions. Several factors affect yields and product prices, in turn influencing farmers' income level and economic risk. However, the literature has often neglected to explicitly account for the role of product quality. This is particularly important for crops such as hazelnut because farmers' prices vary according to the quality of the harvested product. Furthermore, it seems fundamental to disentangle the role of parameters influencing farm results, noticeably yield, product price and quality. This is because farmers select their risk management tools to satisfy their needs, but these are often suita…