This paper focuses specifically on the various factors that differentiate farm enterprises and farm households, both in terms of their sensitivity to climate events and their capacity to adjust to changing climatic and market circumstances. For this analysis, two case studies are presented in two different Latin American, socioeconomic and climatic contexts: the community of Labboulaye, in Cordoba Province, Argentina and the county (municipio) of Gonzalez, in the state of Tamaulipas, Mexico.The paper concludes that vulnerability will continue to be a product of both biophysical impacts due to the impacts of climate events, the structure and resources of the farm unit, and the institutional and policy environment in which those farmers are operating.The paper argues that agricultural diversification of income remains a viable and perhaps necessary risk reduction strategy for farmers operating on the economic margin.
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