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Economics and Productivity of Organic versus Non-organic Dairy Farms in the United States

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  • Gillespie, Jeffrey M.
  • Nehring, Richard F.
  • Hallahan, Charles B.
  • Morrison Paul, Catherine J.
  • Sandretto, Carmen L.

Abstract

Technical and scale efficiencies are estimated for organic and non-organic dairy farms in the United States using an input distance function approach. A multinomial logit analysis is used to categorize the farms by technology. Large conventional farms outperformed smaller farms in most technology / organic / non-organic categories. There was high variability in net returns among the organics so that they did not differ significantly from the large conventional farms. The largest conventional non-organic operations and conventional organic operations tended to have the higher technical efficiencies.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44415.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:44415

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Keywords: organic dairy production; input distance function; technical efficiency; Livestock Production/Industries;

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  1. Hanson, James C. & Dismukes, Robert & Chambers, William & Greene, Catherine R. & Kremen, Amy, 2003. "Risk And Risk Management In Organic Agriculture: View Of Organic Farmers," Working Papers 28551, University of Maryland, Department of Agricultural and Resource Economics.
  2. Dimitri, Carolyn & Greene, Catherine R., 2002. "Recent Growth Patterns In The U.S. Organic Foods Market," Agricultural Information Bulletins 33715, United States Department of Agriculture, Economic Research Service.
  3. Vince Breneman, 2006. "Urban Influence on Costs of Production in the Corn Belt," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 930-946.
  4. Dhar, Tirtha Pratim & Foltz, Jeremy D., 2003. "Market Structure And Consumer Valuation In The Rbst-Free And Organic Milk Markets," 2003 Annual meeting, July 27-30, Montreal, Canada 22177, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Kiesel, Kristin & Villas-Boas, Sofia B, 2007. "Got organic milk? Consumer valuations of milk labels after the implementation of the USDA organic seal," CUDARE Working Paper Series 1024, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  6. Nehring, Richard F. & Gillespie, Jeffrey M. & O'Donoghue, Erik J. & Sandretto, Carmen L., 2007. "Dairy Resource Management: A Comparison of Conventional and Pasture-Based Systems," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34814, Southern Agricultural Economics Association.
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