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Technical efficiency and conversion to organic farming: the case of France

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  • Laure Latruffe
  • Céline Nauges

Abstract

Using a panel of French crop farms, we test whether farmers’ technical efficiency under conventional practices is a significant driver of conversion to organic farming. An important issue is whether subsidies to organic farming could encourage inefficient farmers to convert. We find that the probability of conversion does depend on technical efficiency preceding the conversion, but that the direction of the effect depends on farm size. This result is found to be robust to the method of calculation of efficiency scores, either parametric or non-parametric. This study also confirms that farm’s characteristics impact the probability of conversion to organic farming.

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File URL: http://www.rennes.inra.fr/smart/Media/Working-papers/WP10-17
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Bibliographic Info

Paper provided by INRA UMR SMART in its series Working Papers SMART - LERECO with number 10-17.

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Length: 35 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:rae:wpaper:201017

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Web page: http://www.rennes.inra.fr/smart_eng/Working-Papers-SMART-LERECO
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Keywords: organic farming; technical efficiency; subsidies; adverse selection; France;

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