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Technical efficiency of organic milk-farms in Germany - the role of subsidies and of regional factors

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  • Lakner, Sebastian

Abstract

This paper investigates the efficiency of organic milk farms in Germany based on data from 1994/95 to 2005/06. Five inputs and one output are analyzed by means of a stochastic frontier production function, allowing for heteroscedasticity and technical effects. The selection of determinants of technical efficiency includes 5 groups of indicators. The analysis is focused on the impacts of farm support of organic farms and of regional factors, that can influence technical efficiency. The results show, that the agri-environmental payments show a negative effect on efficiency. Farms, which receive investment aid, show lower efficiency scores. Finally, the implication for agricultural policy are discussed.

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File URL: http://purl.umn.edu/51301
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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51301.

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Date of creation: Aug 2009
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Handle: RePEc:ags:iaae09:51301

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Related research

Keywords: Efficiency Analysis; Organic Farming; Agglomerations Effects; Subsidies; Agricultural and Food Policy; Production Economics; Productivity Analysis; Q12; Q18; D24;

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  1. Subal Kumbhakar & Efthymios Tsionas & Timo Sipiläinen, 2009. "Joint estimation of technology choice and technical efficiency: an application to organic and conventional dairy farming," Journal of Productivity Analysis, Springer, vol. 31(3), pages 151-161, June.
  2. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Technical efficiency of alternative farming systems: the case of Greek organic and conventional olive-growing farms," Food Policy, Elsevier, vol. 26(6), pages 549-569, December.
  3. Sophia Davidova & Laure Latruffe, 2007. "Relationships between Technical Efficiency and Financial Management for Czech Republic Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 269-288, 06.
  4. Balmann, Alfons & Czasch, Britta, 2001. "Zur Effizienz landwirtschaftlicher Unternehmen in Brandenburg – Eine Data Envelopment Analysis," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(3).
  5. Oliver Musshoff & Norbert Hirschauer, 2008. "Adoption of organic farming in Germany and Austria: an integrative dynamic investment perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 39(1), pages 135-145, 07.
  6. Caudill, Steven B & Ford, Jon M & Gropper, Daniel M, 1995. "Frontier Estimation and Firm-Specific Inefficiency Measures in the Presence of Heteroscedasticity," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(1), pages 105-11, January.
  7. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  8. Awudu Abdulai & Hendrik Tietje, 2007. "Estimating technical efficiency under unobserved heterogeneity with stochastic frontier models: application to northern German dairy farms," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 34(3), pages 393-416, September.
  9. Alfons Oude Lansink & Ky–sti Pietola, 2002. "Effciency and productivity of conventional and organic farms in Finland 1994--1997," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(1), pages 51-66, March.
  10. Lohr, Luanne & Park, Timothy A., 2006. "Technical Efficiency of U.S. Organic Farmers: The Complementary Roles of Soil Management Techniques and Farm Experience," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), October.
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Cited by:
  1. Rizov, Marian & Pokrivcak, Jan & Ciaian, Pavel, 2013. "CAP Subsidies and the Productivity of EU Farms," Working Papers 146962, Factor Markets, Centre for European Policy Studies.
  2. Marian Rizov & Jan Pokrivcak & Pavel Ciaian, 2013. "CAP Subsidies and Productivity of the EU Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 537-557, 09.

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