Productive Efficiency of Subsidized Organic Alfalfa Farms
AbstractThis paper assesses the efficiency and performance of organic alfalfa farms. Data were obtained from questionnaires collected from forty farms participating in an EU-subsidized program promoting the switch to organic farming. Results obtained using the bootstrap Data Envelopment Analysis methodology show that larger farms had lower yields and lower efficiency scores and more experienced farmers had higher efficiency scores. A Tobit analysis of the impact of environmental factors and subsidies on farm efficiency demonstrates that CAP subsidies cause perverse incentives, raising questions about the efficiency of such policies for sustainable agricultural development.
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Bibliographic InfoArticle provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.
Volume (Year): 37 (2012)
Issue (Month): 2 (August)
bootstrap DEA; CAP subsidies; organic alfalfa farming; sustainable agricultural development; technical efficiency; Crop Production/Industries;
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