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Comparing economic performance of organic and conventional U.S. beef farms using matching samples

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  • Jeffrey Gillespie
  • Richard Nehring

Abstract

Economic performance measures of organic and transitioning-to-organic cow–calf farms are compared with those of non-organic cow–calf farms. A method of matching samples is used for the comparison, estimating sample average treatment effects for the subpopulation of the treated. Each organic farm is matched with one non-organic farm that is involved in the same beef industry segments and farm size classes, and in the same region. Furthermore, farmer demographic, farming system, and technology variables are used to identify matches. Bias is reduced by estimating separate weighted regression functions for the treated and untreated groups. Results suggest that higher cost of organic production is due primarily to higher capital recovery, taxes and insurance, and overhead costs. Evidence is found for differences in beef enterprise profitability by organic status.
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Suggested Citation

  • Jeffrey Gillespie & Richard Nehring, 2013. "Comparing economic performance of organic and conventional U.S. beef farms using matching samples," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(2), pages 178-192, April.
    • Handle: RePEc:bla:ajarec:v:57:y:2013:i:2:p:178-192
    DOI: 10.1111/ajar.2013.57.issue-2
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    Cited by:

    1. Nguyen Khanh Doanh & Nguyen Thi Thu Thuong & Yoon Heo, 2018. "Impact of Conversion to Organic Tea Cultivation on Household Income in the Mountainous Areas of Northern Vietnam," Sustainability, MDPI, vol. 10(12), pages 1-21, November.
    2. Gillespie, Jeffrey & Nehring, Richard, 2014. "Pasture-Based versus Conventional Milk Production: Where Is the Profit?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(4), pages 543-558, November.
    3. Qushim, Berdikul & Gillespie, Jeffrey, 2016. "Women Farm Operators in the U.S. Meat Goat Production: Who is More Productive?," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230004, Southern Agricultural Economics Association.
    4. Horrillo, A. & Escribano, M. & Mesias, F.J. & Elghannam, A. & Gaspar, P., 2016. "Is there a future for organic production in high ecological value ecosystems?," Agricultural Systems, Elsevier, vol. 143(C), pages 114-125.
    5. Rebecca Buttinelli & Raffaele Cortignani & Gabriele Dono, 2021. "Financial sustainability in Italian Organic Farms: An analysis of the FADN Sample," Economia agro-alimentare, FrancoAngeli Editore, vol. 23(3), pages 1-32.
    6. Timothy C. Durham & Tamás Mizik, 2021. "Comparative Economics of Conventional, Organic, and Alternative Agricultural Production Systems," Economies, MDPI, vol. 9(2), pages 1-22, April.
    7. Froehlich, Anderson G. & Melo, Andrea S.S.A. & Sampaio, Breno, 2018. "Comparing the Profitability of Organic and Conventional Production in Family Farming: Empirical Evidence From Brazil," Ecological Economics, Elsevier, vol. 150(C), pages 307-314.
    8. Elodie Letort & Aude Ridier, 2025. "Economic performance of organic dairy farms during and after conversion," Post-Print hal-05067709, HAL.
    9. Jaime Martín-García & José A. Gómez-Limón & Manuel Arriaza, 2023. "Conventional versus organic olive farming: which has a better economic performance?," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-27, December.
    10. Zhen, Huayang & Qiao, Yuhui & Zhao, Haijun & Ju, Xuehai & Zanoli, Raffaele & Waqas, Muhammad Ahmed & Lun, Fei & Knudsen, Marie Trydeman, 2022. "Developing a conceptual model to quantify eco-compensation based on environmental and economic cost-benefit analysis for promoting the ecologically intensified agriculture," Ecosystem Services, Elsevier, vol. 56(C).

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