This study examines whether simultaneous cultivation of different crop varieties enhances farmers’ productivity - defined as on-farm income per hectare - and reduces the risk of crop failure under a severe drought in 2015 in the Mekong River Delta (MRD), Vietnam.Two rounds of the Vietnam Household Living Standard Survey, 2014 and 2016, merged with remote-sensed weather data are used in this study. Both the Herfindahl Index and Shannon index indicate the degree of diversification and the Standardised Precipitation-Evapotranspiration Index (SPEI) shows the extreme weather condition.This study investigates the impact of diversity on farmers’ income while controlling for weather condition such as drought and precipitation variability.The empirical result shows that investment in irrigation increases the extent of crop intensity. While cultivating area appeared to be positively related to crop intensification, smallholders tend to diversify crop varieties as their farm size increases.Agricultural inputs are shown to be the main drivers of farm income. Crop diversification encourages higher farm income under the drought condition, while no statistical evidence is found for the case without the climate event.This study is supported by the Center for International Agricultural Development (CIAD) at Seoul National University to conduct research focusing on agricultural development topics along the Mekong region.
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Crop Diversification Impact on Farm Incomeunder Weather Shock: Evidence from Rice Farmers in the Mekong River Delta, Vietnam