Learning in Organic Farming An Application on Finnish Dairy Farms
AbstractOrganic farming technology may be relatively unknown to farmers at the time when they switch from conventional into organic farming. Therefore, experience gained over time and learning by doing may be important determinants in the efficiency of organic farming. It may also take time to reach the optimal nutrient stock of soil and optimal nutrient supply for arable crops under organic farming. Thus, efficiency of organic farming can either grow or decrease over time depending on the nature of the technology and the learning process. This paper estimates technical efficiency of organic farming and its development over time. We control for possible selection bias and regional heterogeneity when estimating a stochastic frontier distance functions for a sample of conventional and organic dairy farms in Finland. The results suggest that organic dairy farms are less technically efficient than conventional farms. Technical efficiency at first diminishes when the conversion towards organic production starts. After 6 years from the switch, technical efficiency starts to increase again. The estimates signal that the length of the conversion and learning process of organic farming is in average 6-7 years.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24493.
Date of creation: 2005
Date of revision:
technical efficiency; technical change; output distance function; SFA; Research and Development/Tech Change/Emerging Technologies; C23; D24; D83; O30; Q12;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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