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Analysing Profits and Economic Behaviour of Organic and Conventional Dutch Arable Farms

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  • Oude Lansink, Alfons G.J.M.
  • Jensma, Klaske
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    Abstract

    This paper uses a micro-econometric model to analyse differences in variable profits and economic behaviour between organic and conventional arable farms. Insight in factors underlying these differences is essential in designing policy measures that aim at encouraging the transition to a more sustainable farming practice. The framework is applied to a rotating panel of Dutch conventional and organic arable farms over the period 1990-1999. The results show that the, on average larger variable profit of organic farms is mainly associated with the use of land and technological changes. The shadow price of labour suggests over-use of labour on organic arable farms. Demand for pesticides and supply of output are generally more elastic on organic farms. Furthermore, organic farmers that increase the size of their farm are found to become more dependent on the use of pesticides and are found to increase the intensity of the use of land.

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    File URL: http://purl.umn.edu/26445
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    Bibliographic Info

    Article provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.

    Volume (Year): 04 (2003)
    Issue (Month): 2 (August)
    Pages:

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    Handle: RePEc:ags:aergaa:26445

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    Web page: http://www.etagro.gr/
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    Related research

    Keywords: Crop Production/Industries;

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    Cited by:
    1. Teresa Serra & Barry Goodwin, 2009. "The efficiency of Spanish arable crop organic farms, a local maximum likelihood approach," Journal of Productivity Analysis, Springer, vol. 31(2), pages 113-124, April.
    2. Josep Mª Argilés & Néstor Duch Brown, 2007. "A comparison of the economic and environmental performances of conventional and organic farming: Evidence from financial statements," Working Papers 2007/8, Institut d'Economia de Barcelona (IEB).
    3. Tzouramani, Irene & Karanikolas, Pavlos & Alexopoulos, George, 2008. "Risk and Income Risk Management Issues for Organic Crops in Greece," 108th Seminar, February 8-9, 2008, Warsaw, Poland 48116, European Association of Agricultural Economists.

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