Farm performance and input self-sufficiency increases with functional crop diversity on Swedish farms

Diversified crop production is a key agroecological practice that enhances ecosystem functions and reduces reliance on costly external inputs, such as for plant protection nutrition but might also increase labour costs lower yields. We investigate if functional diversification, i.e., cultivation of species with contrasting ecological functions, associated higher growth in farm economic performance input self-sufficiency. This compared increased related diversity the genetically closely species. apply system GMM dynamic panel data estimator to 35,195 medium large Swedish farms (2001–2018), combining information grown each field year financial individual characteristics. find self-sufficiency respond positively diversification negatively diversification. The results highlight decomposed assessment provides an enhanced understanding build-up resource-use efficiencies production- market risk reductions farms.