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Factors Influencing Partial and Complete Adoption of Organic Farming Practices in Saskatchewan, Canada

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  • Mohammad Khaledi
  • Simon Weseen
  • Erin Sawyer
  • Shon Ferguson
  • Richard Gray

Abstract

Using a sample of organic producers in Saskatchewan, Canada, this study uses a Tobit model to identify the factors that discourage or encourage the complete adoption of organic farming and to assess why farmers differ in the share of total cultivated crop area they allocate to organic practices. In particular, the study evaluates the effect of transaction costs on the decision to convert partially or completely from conventional to organic practices. The results highlight the importance of lowering certain transaction costs to encourage the adoption of organic management practices. Significant transaction costs were found to include infrastructure and services, satisfaction with marketer performance, marketing problems, and Internet use. Results suggest that farmers with smaller land holdings are more inclined to undertake complete adoption. While the education levels of organic farmers show no significant effect on the probability of adoption, younger organic farmers allocate significantly less of their cultivated area to organic practices. À partir d'un échantillon de producteurs de cultures biologiques de la Saskatchewan, au Canada, nous avons utilisé un modèle Tobit pour déterminer les facteurs qui encouragent ou découragent l'adoption totale des pratiques agricoles biologiques et les raisons pour lesquelles le pourcentage des superficies consacrées aux cultures biologiques varie d'un producteur à l'autre. Nous avons également examiné les répercussions des coûts de transaction sur la décision de passer, en totalité ou en partie, des pratiques conventionnelles aux pratiques biologiques. Les résultats ont fait ressortir l'importance de réduire certains coûts de transaction afin d'encourager l'adoption des méthodes agronomiques biologiques. Les coûts de transaction les plus importants incluaient les infrastructures et les services, l'efficacité des intermédiaires, les problèmes liés à la mise en marché et l'utilisation d'Internet. Les résultats autorisent à penser que les producteurs agricoles qui possèdent de petites superficies sont plus enclins à adopter en totalité l'agriculture biologique. Alors que le niveau de scolarité des producteurs ne semble pas avoir de répercussions sur la probabilité d'adopter l'agriculture biologique, les jeunes producteurs de cultures biologiques consacrent beaucoup moins de leurs superficies cultivées à la culture biologique.

Suggested Citation

  • Mohammad Khaledi & Simon Weseen & Erin Sawyer & Shon Ferguson & Richard Gray, 2010. "Factors Influencing Partial and Complete Adoption of Organic Farming Practices in Saskatchewan, Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 37-56, March.
  • Handle: RePEc:bla:canjag:v:58:y:2010:i:1:p:37-56
    DOI: 10.1111/j.1744-7976.2009.01172.x
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    File URL: https://doi.org/10.1111/j.1744-7976.2009.01172.x
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    References listed on IDEAS

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    1. Parvathi, Priyanka & Waibel, Hermann, 2015. "Adoption and Impact of Black Pepper Certification in India," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(2), pages 1-29, May.
    2. 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, Open Access Journal, vol. 10(12), pages 1-21, November.
    3. Saem Lee & Trung Thanh Nguyen & Patrick Poppenborg & Hio-Jung Shin & Thomas Koellner, 2016. "Conventional, Partially Converted and Environmentally Friendly Farming in South Korea: Profitability and Factors Affecting Farmers’ Choice," Sustainability, MDPI, Open Access Journal, vol. 8(8), pages 1-18, July.
    4. Peterson, Hikaru Hanawa & Barkley, Andrew P. & Chacon-Cascante, Adriana & Kastens, Terry L., 2012. "The Motivation for Organic Grain Farming in the United States: Profits, Lifestyle, or the Environment?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(2), pages 1-19, May.
    5. Wollni, Meike & Andersson, Camilla, 2014. "Spatial patterns of organic agriculture adoption: Evidence from Honduras," Ecological Economics, Elsevier, vol. 97(C), pages 120-128.
    6. Uematsu, Hiroki & Mishra, Ashok K., 2012. "Organic farmers or conventional farmers: Where's the money?," Ecological Economics, Elsevier, vol. 78(C), pages 55-62.
    7. Daniele Mozzato & Paola Gatto & Edi Defrancesco & Lucia Bortolini & Francesco Pirotti & Elena Pisani & Luigi Sartori, 2018. "The Role of Factors Affecting the Adoption of Environmentally Friendly Farming Practices: Can Geographical Context and Time Explain the Differences Emerging from Literature?," Sustainability, MDPI, Open Access Journal, vol. 10(9), pages 1-23, August.
    8. Mrinila Singh & Keshav Lall Maharjan & Bijan Maskey, 2015. "Factors impacting adoption of organic farming in Chitwan district of Nepal," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 5(1), pages 1-12, January.
    9. Laure Latruffe & Douadia Bougherara & Jasmin Sainte-Beuve, 2012. "Economic performance in organic farming in France: incentive or disincentive to convert?," Post-Print hal-01190622, HAL.
    10. Steven McGreevy, 2012. "Lost in translation: incomer organic farmers, local knowledge, and the revitalization of upland Japanese hamlets," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 29(3), pages 393-412, September.
    11. 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.
    12. Hana Stojanová & Veronika Blašková & Michaela Lněničková, 2018. "The Importance of Factors Affecting the Entry of Entrepreneurial Subjects to Organic Farming in the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(4), pages 1017-1024.

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