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Are Organic Farmers Really Better Off Than Conventional Farmers?

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  • Hiroki, Uematsu
  • Mishra, Ashok K.

Abstract

We 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.

Suggested Citation

  • Hiroki, Uematsu & Mishra, Ashok K., 2011. "Are Organic Farmers Really Better Off Than Conventional Farmers?," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103862, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103862
    DOI: 10.22004/ag.econ.103862
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    References listed on IDEAS

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    1. 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, January.
    2. Stevens-Garmon, John & Huang, Chung L. & Lin, Biing-Hwan, 2007. "Organic Demand: A Profile of Consumers in the Fresh Produce Market," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 22(2), pages 1-8.
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    Cited by:

    1. 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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    Keywords

    Agribusiness; Crop Production/Industries; Farm Management; Marketing;
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