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Organic farming in Scandinavia -- Productivity and market exit

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  • Sauer, Johannes
  • Park, Tim

Abstract

This paper attempts to quantitatively measure the change in the productivity of Danish organic farming in recent years. Based on a translog production frontier framework the technical and scale efficiency at farm level is analysed by following a time trends as well as a general index model specification. Further this study tries to analyse the significance of subsidies for promoting long term growth in organic production by estimating a bootstrapped bivariate probit model with respect to factors influencing the probability of organic market exit. The results revealed significant differences in the organic farms' technical efficiencies, no significant total factor productivity growth and even a slightly negative rate of technical change in the period investigated. Evidence has been found for a positive relationship between subsidy payments and an increase in farm efficiency, technology improvements and a decreasing probability of organic market exit which was also confirmed for off farm income.

Suggested Citation

  • Sauer, Johannes & Park, Tim, 2009. "Organic farming in Scandinavia -- Productivity and market exit," Ecological Economics, Elsevier, vol. 68(8-9), pages 2243-2254, June.
  • Handle: RePEc:eee:ecolec:v:68:y:2009:i:8-9:p:2243-2254
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
    2. Rizov, Marian & Pokrivcak, Jan & Ciaian, Pavel, 2013. "CAP Subsidies and the Productivity of EU Farms," Factor Markets Working Papers 148, Centre for European Policy Studies.
    3. repec:gam:jsusta:v:9:y:2017:i:9:p:1648-:d:112190 is not listed on IDEAS
    4. Marian Rizov & Jan Pokrivcak & Pavel Ciaian, 2013. "CAP Subsidies and Productivity of the EU Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 537-557, September.
    5. Tiedemann, Torben & Latacz-Lohmann, Uwe, 2011. "Empirische Analysen zur Produktivitätsentwicklung im ökologischen und konventionellen Landbau," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 60(2).
    6. Lakner, Sebastian & Breustedt, Gunnar, 2015. "Efficiency analysis of organic farming systems- a review of methods, topics, results, and conclusions," 2015 Conference, August 9-14, 2015, Milan, Italy 212025, International Association of Agricultural Economists.
    7. Darragh Clancy & A. Kazukauskas & C. Newman & Fiona Thorne, 2009. "An investigation of the level of structural change in the agrifood sector of Ireland, Denmark and the Netherlands," Working Papers 0915, Rural Economy and Development Programme,Teagasc.
    8. V. Santoni & M. Pulina, 2016. "An analysis on the Italian agricultural firms: effects of public subsidies," Working Paper CRENoS 201611, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    9. Nehring, Richard F. & Sauer, Johannes & Gillespie, Jeffrey M. & Hallahan, Charles B., 2011. "Intensive versus Extensive Dairy Production Systems: Dairy States in the Eastern and Midwestern U.S. and Key Pasture Countries the E.U.: Determining the Competitive Edge," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98824, Southern Agricultural Economics Association.
    10. Hasan DUDU & Zuzana Smeets Kristkova, 2017. "Impact of CAP Pillar II Payments on Agricultural Productivity," JRC Working Papers JRC106591, Joint Research Centre (Seville site).

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