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The Economics of Organic Versus Conventional Cow-calf Production

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  • Gillespie, Jeffrey M.
  • Nehring, Richard F.

Abstract

Costs, returns, and profitability of cow-calf farms that are organic or transitioning to organic are compared with those of cow-calf farms that are non-organic. A method of matching samples is used for the comparison. Results suggest higher cost of organic production due to higher unpaid labor, taxes and insurance, and overhead costs.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:saea12:119773
    DOI: 10.22004/ag.econ.119773
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    References listed on IDEAS

    as
    1. Loren W. Tauer, 2009. "Estimation of Treatment Effects of Recombinant Bovine Somatotropin Using Matching Samples," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 411-423, September.
    2. 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.
    3. Boucher, Robert W. & Gillespie, Jeffrey M., 2001. "Projected Costs And Returns For Beef Cattle, Dairy, Broiler And Forage Crop Production In Louisiana, 2001," AEA Information Series 31666, Louisiana State University, Department of Agricultural Economics and Agribusiness.
    4. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
    5. McBride, William D. & Mathews, Kenneth H., Jr., 2011. "The Diverse Structure and Organization of U.S. Beef Cow-Calf Farms," Economic Information Bulletin 102764, United States Department of Agriculture, Economic Research Service.
    6. McBride, William D. & Greene, Catherine R., 2008. "The Profitability of Organic Soybean Production," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6449, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
    8. 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.
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    Cited by:

    1. Williams, Brian R. & DeVuyst, Eric A. & Peel, Derrell S. & Raper, Kellie Curry, 2014. "The Likelihood of Positive Returns from Value-Added Calf Management Practices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(1), pages 125-138, February.
    2. Williams, Brian R. & DeVuyst, Eric A. & Peel, Derrell S. & Raper, Kellie Curry, 2014. "Reducing Self-Selection Bias in Feeder Cattle Premium Estimates Using Matched Sampling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-15, April.
    3. Karki, Lila B. & Karki, Uma, 2017. "The Socioeconomic and Ecological Impact of Cool Season Forage Production: A Case of Black Belt Counties, Alabama," Professional Agricultural Workers Journal (PAWJ), Professional Agricultural Workers Conference, vol. 4(2), June.

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    Keywords

    Farm Management; Production Economics;

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