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Assessing the Technical and Allocative Efficiency of U.S. Organic Producers

Author

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  • Park, Timothy A.
  • Lohr, Luanne

Abstract

We develop measures of technical and allocative efficiency of producers in marketing certified organic products. A stochastic output distance frontier and the associated revenue share equations are estimated using comprehensive U.S. data on certified organic producers. Farm-level measures of technical efficiency are calculated and factors that enhance performance are identified. Factors that systematically influence allocative efficiency are assessed. The revenue mix of organic producers is systematically inefficient as both male and female producers rely too heavily on revenue from organic markets relative to conventional outlets.

Suggested Citation

  • Park, Timothy A. & Lohr, Luanne, 2010. "Assessing the Technical and Allocative Efficiency of U.S. Organic Producers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 42(2), pages 247-259, May.
    • Handle: RePEc:cup:jagaec:v:42:y:2010:i:02:p:247-259_00
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    Cited by:

    1. Zúniga-González, Carlos Alberto, "undated". "Technical efficiency of organic fertilizer in small farms of Nicaragua: 1998-2005," Working Papers 237375, National Autonomous University of Nicaragua, León (Unan-León), Researching Center for Applied Economics (RCAE).
    2. Spiegel, Alisa & Coletta, Attilio & Severini, Simone, 2022. "The distortive effect of organic payments: An example of policy failure in the case of hazelnut plantation," Land Use Policy, Elsevier, vol. 119(C).
    3. Volpe III, Rickard James, 2014. "National Brands, Private Labels, and Food Price Inflation," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(4), pages 1-16, November.

    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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