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The Economics and Productivity of Organic versus Conventional U.S. Dairy Farms

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  • Nehring, Richard F.
  • Gillespie, Jeffrey
  • Greene, Catherine
  • Law, Jonathan

Abstract

United States certified organic and conventional dairy farms are compared on the basis of economic, financial, and technological measures using dairy data from the 2016 USDA Agricultural Resource Management Survey. A stochastic production frontier model using an input distance function framework is estimated for U.S. dairy farms to examine technical efficiency and returns to scale (RTS) of farms of both systems and by multiple size categories. Financial and economic measures such as net return on assets and input costs, as well as technological adoption measures are compared by system and size. For both systems, size is the major determinant of competitiveness based on selected measures of productivity and RTS.

Suggested Citation

  • Nehring, Richard F. & Gillespie, Jeffrey & Greene, Catherine & Law, Jonathan, 2021. "The Economics and Productivity of Organic versus Conventional U.S. Dairy Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 53(1), pages 134-152, February.
    • Handle: RePEc:cup:jagaec:v:53:y:2021:i:1:p:134-152_8
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    Cited by:

    1. Nehring, Richard F. & Bonin, Daniel & Bailey, Samuel M. & Leibold, Kelvin & Dimitri, Carolyn, 2023. "The Economics and Productivity of GMO, NonGMO, and Organic Corn Production in Recent Years: Focusing on HT and Organic Trends in Corn Grain Production and Corn Production on Organic Dairies," 2023 Annual Meeting, July 23-25, Washington D.C. 335490, Agricultural and Applied Economics Association.

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