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Comparing support for organic and conventional farming in the European Union using an adjusted Producer Support Estimate

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  • Stephan Hubertus Gay
  • Frank Offermann

Abstract

This paper compares support for organic and conventional farming in 2001, using the methodology of the Producer Support Estimate (PSE). Although market price support for organic products is difficult to determine, our case study-based estimates indicate that the PSE for organic farming ranged between 41 and 44 per cent in the EU, compared with 35 per cent for conventional farming. However, the structure of support for the different commodities is similar between organic and conventional farming, although direct payments are generally higher for organic farming. No clear link between the level of support and the share of organic farming in Member States could be detected. An annual calculation of separate PSEs for both forms of farming could provide useful information about developments in support. Copyright 2006, Oxford University Press.

Suggested Citation

  • Stephan Hubertus Gay & Frank Offermann, 2006. "Comparing support for organic and conventional farming in the European Union using an adjusted Producer Support Estimate," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(1), pages 31-48, March.
    • Handle: RePEc:oup:erevae:v:33:y:2006:i:1:p:31-48
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    Cited by:

    1. Nadine Würriehausen & Rico Ihle & Sebastian Lakner, 2015. "Price relationships between qualitatively differentiated agricultural products: organic and conventional wheat in Germany," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 195-209, March.
    2. Frank Offermann & Hiltrud Nieberg, 2009. "Impacts of the 2003 CAP Reform on Organic Farms," EuroChoices, The Agricultural Economics Society, vol. 8(SpecialIs), pages 32-39, April.
    3. Teresa Serra & David Zilberman & José M. Gil, 2008. "Differential uncertainties and risk attitudes between conventional and organic producers: the case of Spanish arable crop farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 219-229, September.
    4. Mzoughi, Naoufel, 2014. "Do organic farmers feel happier than conventional ones? An exploratory analysis," Ecological Economics, Elsevier, vol. 103(C), pages 38-43.
    5. Offermann, Frank & Nieberg, Hiltrud & Zander, Katrin, 2009. "Dependency of organic farms on direct payments in selected EU member states: Today and tomorrow," Food Policy, Elsevier, vol. 34(3), pages 273-279, June.

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