Are Organic Farmers Really Better Off Than Conventional Farmers?
AbstractWe employed the propensity score matching and estimated the causal effect of being certified organic crop producers on farm household income and its various components in the United States. Contrary to the standard assumption in economic analysis, certified organic farmers do not earn significantly higher household income than conventional farmers. Certified organic crop producers earn higher revenue but they incur higher production expenses. In particular, certified organic producers spend significantly more on labor expenses, insurance payments, and marketing charges than conventional farmers. The results suggest that early adopters of organic farmers have done so for non pecuniary reasons and the lack of economic incentives can be an important barrier to conversion to organic farming in the United States.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103862.
Date of creation: 2011
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organic farming; propensity score matching; nearest neighbor matching; average treatment effect; Agribusiness; Crop Production/Industries; Farm Management; Marketing; Q10; Q13; J43; C21;
Find related papers by JEL classification:
- Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
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- Tim O'Riordan & Dick Cobb, 2001. "Assessing the Consequences of Converting to Organic Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 22-35.
- Gillespie, Jeffrey M. & Nehring, Richard F., 2012. "The Economics of Organic Versus Conventional Cow-calf Production," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119773, Southern Agricultural Economics Association.
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