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Technology Adoption and Technical Efficiency: Organic and Conventional Dairy Farms in the United States

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  • Carlos D. Mayen
  • Joseph V. Balagtas
  • Corinne E. Alexander

Abstract

We compare productivity and technical efficiency of organic and conventional dairy farms in the United States. We address self-selection into organic farming by using propensity score matching and explicitly test the hypothesis that organic and conventional farms employ a single, homogeneous technology. Utilizing the 2005 Agricultural Resource Management Survey on Dairy Costs and Returns Report (ARMS) data, we reject the homogeneous technology hypothesis and find that the organic dairy technology is approximately 13% less productive. However, we find little difference in technical efficiency between organic and conventional farms when technical efficiency is measured against the appropriate technology. Copyright 2010, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 92 (2010)
Issue (Month): 1 ()
Pages: 181-195

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Handle: RePEc:oup:ajagec:v:92:y:2010:i:1:p:181-195

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Cited by:
  1. Vanessa von Schlippenbach & Isabel Teichmann, 2011. "The Strategic Use of Private Quality Standards in Food Supply Chains," Discussion Papers of DIW Berlin 1120, DIW Berlin, German Institute for Economic Research.
  2. Rao, Elizaphan J.O. & Brummer, Bernhard & Qaim, Matin, 2011. "Farmer Participation in Supermarket Channels, Production Technology, and Efficiency: The Case of Vegetables in Kenya," Discussion Papers 113508, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
  3. McBride, William & Greene, Catherine & Foreman, Linda, 2013. "The Structure and Profitability of Organic Field Corn Production," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149671, Agricultural and Applied Economics Association.
  4. Charyulu Kumara D. & Biswas, Subho, . "Economics and Efficiency of Organic Farming vis-à-vis Conventional Farming in India," IIMA Working Papers WP2010-04-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
  5. Breustedt, Gunnar & Latacz-Lohmann, Uwe & Tiedemann, Torben, 2011. "Organic or conventional? Optimal dairy farming technology under the EU milk quota system and organic subsidies," Food Policy, Elsevier, vol. 36(2), pages 223-229, April.
  6. Cordero, José Manuel & Santín, Daniel & Sicilia, Gabriela, 2013. "Dealing with the Endogeneity Problem in Data Envelopment Analysis," MPRA Paper 47475, University Library of Munich, Germany.
  7. Mugonola, Basil & Vranken, Liesbet & Maertens, Miet & Deckers, Jozef & Taylor, Daniel B & Bonabana-Wabbi, Jackline & Mathijs, Erik, 2013. "Soil and water conservation technologies and technical efficiency in banana production in upper Rwizi micro-catchment, Uganda," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(1), July.
  8. Mercedes Beltrán & Ernest Reig, 2014. "Comparing conventional and organic citrus grower efficiency in Spain," Working Papers 1406, Department of Applied Economics II, Universidad de Valencia.
  9. Huanxiu GUO & Sébastien Marchand, 2013. "The environmental efficiency of non-certified organic farming in China: a case study of paddy rice production," Working Papers halshs-00763675, HAL.
  10. Latruffe, Laure & Nauges, Céline, 2010. "Technical efficiency and conversion to organic farming: the case of France," TSE Working Papers 10-209, Toulouse School of Economics (TSE).
  11. Abdoulaye, Ibrahim Djido & Sanders, John H., 2013. "A Matching Approach to Analyze the Impact of New Agricultural Technologies: Productivity and Technical Efficiency in Niger," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150434, Agricultural and Applied Economics Association.
  12. Dong, Fengxia & Hennessy, David & Jensen, Helen H., 2013. "Size, Productivity and Exit Decisions in Dairy Farms," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150339, Agricultural and Applied Economics Association.
  13. Boris Bravo-Ureta & William Greene & Daniel Solís, 2012. "Technical efficiency analysis correcting for biases from observed and unobserved variables: an application to a natural resource management project," Empirical Economics, Springer, vol. 43(1), pages 55-72, August.
  14. Latruffe, Laure & Nauges, Celine, 2010. "Converting to organic farming in France: Is there a selection problem?," 120th Seminar, September 2-4, 2010, Chania, Crete 109386, European Association of Agricultural Economists.
  15. Key, Nigel D. & McBride, William D., 2012. "Sub-therapeutic Antibiotics and the Efficiency of U.S. Hog Farms," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124725, Agricultural and Applied Economics Association.

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