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Economic Efficiency of U.S. Organic Versus Conventional Dairy Farms: Evidence from 2005 and 2010

Author

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  • Nehring, Richard F.
  • Gillespie, Jeffrey M.
  • Hallahan, Charles B.
  • Sauer, Johannes

Abstract

We estimate an input distance function for U.S. dairy farming to examine the competitiveness of organic and non-organic dairy production by system and size. Across organic/non-organic systems and size classes, size is the major determinant of competitiveness based on various measures of productivity and returns to scale.

Suggested Citation

  • Nehring, Richard F. & Gillespie, Jeffrey M. & Hallahan, Charles B. & Sauer, Johannes, 2012. "Economic Efficiency of U.S. Organic Versus Conventional Dairy Farms: Evidence from 2005 and 2010," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119769, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea12:119769
    DOI: 10.22004/ag.econ.119769
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    References listed on IDEAS

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    1. William D. McBride & Catherine Greene, 2009. "Costs of Organic Milk Production on U.S. Dairy Farms," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 793-813, December.
    2. 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.
    3. Catherine J. Morrison Paul & Richard Nehring & David Banker, 2004. "Productivity, Economies, and Efficiency in U.S. Agriculture: A Look at Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1308-1314.
    4. 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.
    5. 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.
    6. Mayen Carlos D & Balagtas Joseph V. & Alexander Corinne E., 2009. "Vertical Economies of Scope in Dairy Farming," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 7(1), pages 1-17, October.
    7. V. Eldon Ball & W. A. Lindamood & Richard Nehring & Carlos San Juan Mesonada, 2008. "Capital as a factor of production in OECD agriculture: measurement and data," Applied Economics, Taylor & Francis Journals, vol. 40(10), pages 1253-1277.
    8. Tauer, Loren W. & Mishra, Ashok K., 2005. "U.S. Dairy Farm Cost Efficiency," Working Papers 127079, Cornell University, Department of Applied Economics and Management.
    9. Richard Nehring & Jeffrey Gillespie & Carmen Sandretto & Charlie Hallahan, 2009. "Small U.S. dairy farms: can they compete?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 817-825, November.
    10. Dorfman, Jeffrey H. & Koop, Gary, 2005. "Current developments in productivity and efficiency measurement," Journal of Econometrics, Elsevier, vol. 126(2), pages 233-240, June.
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    Cited by:

    1. Bhandari, Basu Deb & Gillespie, Jeffrey & Scaglia, Guillermo, 2015. "Efficiency of U.S. Grass-Fed Beef Farms," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196813, Southern Agricultural Economics Association.

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    Keywords

    Livestock Production/Industries; Production Economics;

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