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The Effect Of California Weather Conditions On Price Premia For Organically Grown Vegetables In The United States

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  • Ro, Eunjik
  • Frechette, Darren L.

Abstract

Organic vegetable producers typically earn a premium over conventional producers to cover the added costs of organic production. The premium can vary greatly, making organic vegetable farming riskier than conventional farming and causing potential financial problems for new organic farming enterprises. Further, organic vegetable production is geographically concentrated in California, and the variation in organic price premia depends upon regional production factors, especially weather conditions. This study examines the relationship between organic vegetable price premia and California weather conditions near organic vegetable farms. Analysis is based on a unique data set of daily prices from the Boston Terminal Wholesale Market and California weather data from the National Climate Data Center.

Suggested Citation

  • Ro, Eunjik & Frechette, Darren L., 2001. "The Effect Of California Weather Conditions On Price Premia For Organically Grown Vegetables In The United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(2), pages 1-9, July.
    • Handle: RePEc:ags:jlofdr:27823
    DOI: 10.22004/ag.econ.27823
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    File URL: https://ageconsearch.umn.edu/record/27823/files/32020020.pdf
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    References listed on IDEAS

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    1. Dunn, Julie Anton, 1995. "Organic Foods Find Opportunity in the Natural Food Industry," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 18(3), September.
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    Keywords

    Demand and Price Analysis;

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