Conversion Subsidies For Organic Production: Results From Sweden And Lessons For The United States
AbstractEnvironmental and social justifications for organic conversion subsidies are as pervasive in the United States as in Europe, but national policy does not explicitly support organic agriculture. Using Sweden's experience, we analyze factors that affect whether a subsidy is required to motivate organic conversion. We use a utility difference model to compare farmers who converted before and after the subsidy. Significant factors in conversion without subsidies are greater livestock diversity and more sales outlets. Farmers requiring subsidies manage larger farms, are more concerned with organic inspection quality and adequacy of technical advice, and reside in areas with more organic farms. Results suggest that a subsidy induces mainly those already inclined toward organic agriculture to convert. Limited exposure to organic systems and a marketing and technical information infrastructure designed to support conventional agriculture restrict the potential effect of a conversion subsidy in the United States.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Georgia, Department of Agricultural and Applied Economics in its series Faculty Series with number 16640.
Date of creation: 1998
Date of revision:
Contact details of provider:
Postal: Conner Hall, Athens, GA 30602
Phone: (706) 542-2481
Fax: (706) 542-0739
Web page: http://www.caes.uga.edu/departments/agecon/index.html
More information through EDIRC
Organic agriculture; utility difference model; public policy; Agricultural and Food Policy; Production Economics;
Other versions of this item:
- Lohr, Luanne & Salomonsson, Lennart, 2000. "Conversion subsidies for organic production: results from Sweden and lessons for the United States," Agricultural Economics, Blackwell, vol. 22(2), pages 133-146, March.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cragg, Michael & Kahn, Matthew, 1997.
"New Estimates of Climate Demand: Evidence from Location Choice,"
Journal of Urban Economics,
Elsevier, vol. 42(2), pages 261-284, September.
- Cragg, M. & Kahn, M., 1995. "New Estimates on Climate Demand: Evidence from Location Choice," Discussion Papers 1995_34, Columbia University, Department of Economics.
- Madau, Fabio A., 2005. "Technical Efficiency in Organic Farming: An Application on Italian Cereal Farms Using a Parametric Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24545, European Association of Agricultural Economists.
- Batie, Sandra S. & Swinton, Scott M. & Schulz, Mary A., 1999. "Fqpa Implementation To Reduce Pesticide Residue Risks: Part I: Agricultural Producer Concerns," Staff Papers 11813, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- 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.
- Latruffe, Laure & Nauges, CÃ©line, 2010.
"Technical efficiency and conversion to organic farming: the case of France,"
LERNA Working Papers
10.23.329, LERNA, University of Toulouse.
- Latruffe, Laure & Nauges, Céline, 2010. "Technical efficiency and conversion to organic farming: the case of France," TSE Working Papers 10-209, Toulouse School of Economics (TSE).
- Laure Latruffe & Céline Nauges, 2010. "Technical efficiency and conversion to organic farming: the case of France," Working Papers SMART - LERECO 10-17, INRA UMR SMART.
- Latruffe, Laure & Nauges, Celine, 2010. "Converting to organic farming in France: Is there a selection problem?," 120th Seminar, September 2-4, 2010, Chania, Crete 109386, European Association of Agricultural Economists.
- Wossink, Ada & Kuminoff, Nicolai V., 2005. "Valuing the Option to Switch to Organic Farming: An Application to U.S. Corn and Soybeans," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24716, European Association of Agricultural Economists.
- Parker, Dawn Cassandra & Munroe, Darla K., 2004. "Spatial Tests For Edge-Effect Externalities And External Scale Economies In California Agriculture," 2004 Annual meeting, August 1-4, Denver, CO 20000, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Wheeler, Sarah Ann, 2006. "The Influence of Market and Agricultural Policy Signals on the Level of Organic Farming," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25333, International Association of Agricultural Economists.
- Kerselaers, Eva & De Cock, Lieve & Lauwers, Ludwig & Van Huylenbroeck, Guido, 2007. "Modelling farm-level economic potential for conversion to organic farming," Agricultural Systems, Elsevier, vol. 94(3), pages 671-682, June.
- Greene, Catherine R., 2001. "U.S. Organic Farming Emerges in the 1990s: Adoption of Certified Systems," Agricultural Information Bulletins 33777, United States Department of Agriculture, Economic Research Service.
- Margarita Genius & Christos Pantzios & Vangelis Tzouvelekas, . "Information Acquisition and Adoption of Organic Farming Practices: Evidence from Farm Operations in Crete, Greece," Working Papers 0305, University of Crete, Department of Economics.
- Hattam, Caroline & Holloway, Garth J., 2007. "Bayes Estimates of Time to Organic Certification," 81st Annual Conference, April 2-4, 2007, Reading University 7979, Agricultural Economics Society.
- Parker, Dawn Cassandra, 2000. "Edge-Effect Externalities: Theoretical And Empirical Implications Of Spatial Heterogeneity," Dissertations 11940, University of California, Davis, Department of Agricultural and Resource Economics.
- Ribaudo, Marc & Hansen, LeRoy T. & Hellerstein, Daniel & Greene, Catherine R., 2008. "The Use of Markets To Increase Private Investment in Environmental Stewardship," Economic Research Report 56473, United States Department of Agriculture, Economic Research Service.
- Greene, Catherine R. & Kremen, Amy, 2003. "U.S. Organic Farming In 2000-2001: Adoption Of Certified Systems," Agricultural Information Bulletins 33769, United States Department of Agriculture, Economic Research Service.
- Bandara, Ranjith & Tisdell, Clement A., 2003. "Willingness of Sri Lankan Farmers to pay for a Scheme to Conserve Elephants: An Empirical Analysis," Economics, Ecology and Environment Working Papers 48954, University of Queensland, School of Economics.
- Sauer, Johannes & Graversen, Jesper T. & Park, Timothy A., 2006. "Breathtaking or Stagnating? - Productivity, Technical Change and Structural Dynamics in Danish Organic Farming," 2006 Annual meeting, July 23-26, Long Beach, CA 21481, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Teresa Serra & Barry Goodwin, 2009. "The efficiency of Spanish arable crop organic farms, a local maximum likelihood approach," Journal of Productivity Analysis, Springer, vol. 31(2), pages 113-124, April.
- Madau, Fabio A., 2007. "Technical Efficiency in Organic and Conventional Farming: Evidence from Italian Cereal Farms," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 8(1), January.
- Feinerman, Eli & Gardebroek, Cornelis, 2005. "Stimulating Organic Farming Via Public Services and an Auction-Based Subsidy," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24723, European Association of Agricultural Economists.
- Lapple, Doris & Donnellan, Trevor, 2009. "Adoption and Abandonment of Organic Farming: An Empirical Investigation of the Irish Drystock Sector," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 51062, Agricultural Economics Society.
- Kuminoff, Nicolai V. & Wossink, Ada, 2005. "Valuing the Option to Convert from Conventional to Organic Farming," 2005 Annual meeting, July 24-27, Providence, RI 19531, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Parker, Dawn C. & Munroe, Darla K., 2007. "The geography of market failure: Edge-effect externalities and the location and production patterns of organic farming," Ecological Economics, Elsevier, vol. 60(4), pages 821-833, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.