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This article explores how farmer risk preferences are related to their perception of risk of climate change. We measure risk preferences and risk perceptions using a survey and a lab‐in‐the‐field experiment conducted with one of the most vulnerable groups to climate change in Latin America. We find that farmers that behave in accordance with the assumptions of Prospect Theory —a paradigm where risk preferences are characterized by risk aversion, loss aversion, and probability distortion—are more likely to perceive greater risks of climate change. Our results contribute to the understanding of farmer behavior in developing countries. Moreover, since perception of a risk is a necessary prerequisite for deciding on actions to adapt to climate risk, the results have important policy implications for the development and adoption of new technologies aimed at mitigating the effects of climate change (climate‐smart agricultural technologies).

Stochastic plateau production functions provide improved fertilizer recommendations based on multi-year agronomic experiments where weather and other stochastic variables change over time. This research assesses the profitability of no-tillage corn production in northeastern Colorado and determines economically optimal nitrogen fertilizer rates. It also proposes an alternative parameterization of the linear response stochastic plateau model which provides a robustness check against traditional parameterizations. Results show the current use of nitrogen fertilizer in the area exceeds estimated economically optimal levels. This suggests that a reduction in nitrogen use could increase expected profits and simultaneously reduce environmental costs. Virginia Tech [58-3012-7-007]; USDA/ARSUnited States Department of Agriculture (USDA)USDA Agricultural Research Service [58-3012-7-007]; Hatch ProjectUnited States Department of Agriculture (USDA) [VA 136247, NC-1034] Published version This work was supported by Virginia Tech Cooperative Agreement Number 58-3012-7-007 with USDA/ARS; and by Hatch Project VA 136247 Regional project NC-1034. Public domain – authored by a U.S. government employee

The commodity chocolate industry has been long recognized for unsustainable and unethical production practices. In contrast, the craft chocolate industry is well-positioned to move the chocolate industry in the direction of more ethical sourcing strategies, improved environmentally-conscious production practices, and higher quality products as a whole. Craft chocolate businesses also often adhere to ethical and economical guidelines, providing farmers with significantly higher farm gate prices and more resources than their commodity counterparts. However, poor standardization and understanding of industry needs raises questions regarding the integrity and longevity of this industry. With a survey of craft chocolate makers from around the world and an assessment of craft chocolate bar origins and makers, our data confirms for the first time that many craft chocolate producers prioritize responsible business practices including ethical sourcing (29%) and use of direct trade to source higher quality ingredients (38%). Of those surveyed, 60% of chocolate makers believe that routinely used quality assessment techniques do not meet the needs of craft chocolate makers or could use improvement. In addition, this research found that over 65% of craft chocolate makers primarily source beans from South and Central America (in direct contrast to commodity cacao systems, predominantly sourcing from West Africa). Furthermore, this research identifies gaps to support craft chocolate industry cohesion. The craft chocolate industry recognizes the importance of sustainable development and promotion of farmer welfare and environmental conservation and is a remarkably distinct entity within the chocolate world.