Economies of diversification and stochastic dominance analysis in French mixed sheep farms

Abstract Farm diversification is mainly driven by risk mitigation effects and economic gains related to complementarities between production activities. By combining these two aspects, we investigate economies in a sample of French mixed sheep farming systems rank using stochastic dominance criteria. Partially diversified (Sheep-Grass, Sheep-Crop, Sheep-Landless) fully (Sheep-Grass-Crop-Landless) were evaluated. We find high degree diseconomies the considered. The results also indicate that system its risk-reducing (including downside exposure) Sheep-Crop dominant terms risk-adjusted returns.