IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v2y2010i1p189-203d6759.html

Local Selling Decisions and the Technical Efficiency of Organic Farms

Author

Listed:
  • Luanne Lohr

    (Food and Specialty Crops, Economic Research Service, USDA, 1800 M. St. NW, Washington, DC 20036-5831, USA)

  • Timothy Park

    (Food Marketing Branch, Economic Research Service, USDA, 1800 M. St. NW, Washington, DC 20036-5831, USA)

Abstract

The primary purpose of this paper is to examine the factors that influence earned income of organic farmers explicitly incorporating farmer decisions to engage in local selling. The stochastic frontier model identifies role model producers who are the most technically efficient in achieving the maximum output that is feasible with a given set of inputs along with farm and demographic factors that enhance efficiency. Organic earnings equations that control for producer and farm characteristics reveal that organic farmers who are involved in local sales achieve lower earnings. Producer involvement in local sales has little impact on observed technical efficiency on organic farms.

Suggested Citation

  • Luanne Lohr & Timothy Park, 2010. "Local Selling Decisions and the Technical Efficiency of Organic Farms," Sustainability, MDPI, vol. 2(1), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:2:y:2010:i:1:p:189-203:d:6759
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/2/1/189/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/2/1/189/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Catherine J. Morrison Paul & Warren E. Johnston & Gerald A. G. Frengley, 2000. "Efficiency in New Zealand Sheep and Beef Farming: The Impacts of Regulatory Reform," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 325-337, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mirela Ionela Aceleanu, 2016. "Sustainability and Competitiveness of Romanian Farms through Organic Agriculture," Sustainability, MDPI, vol. 8(3), pages 1-19, March.
    2. Pierre Chiaverina & Sophie Drogué & Florence Jacquet & Larry Lev & Robert King, 2023. "Does short food supply chain participation improve farm economic performance? A meta‐analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 54(3), pages 400-413, May.
    3. Anna Gaviglio & Rosalia Filippini & Fabio Albino Madau & Maria Elena Marescotti & Eugenio Demartini, 2021. "Technical efficiency and productivity of farms: a periurban case study analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-18, December.
    4. Bagi, Faqir Singh & Reeder, Richard, "undated". "Farm Activities Associated With Rural Development Initiatives," Economic Research Report 262232, United States Department of Agriculture, Economic Research Service.
    5. Filippo Sgroi & Matteo Candela & Anna Maria Di Trapani & Mario Foderà & Riccardo Squatrito & Riccardo Testa & Salvatore Tudisca, 2015. "Economic and Financial Comparison between Organic and Conventional Farming in Sicilian Lemon Orchards," Sustainability, MDPI, vol. 7(1), pages 1-15, January.
    6. Djokoto, Justice G., 2015. "Technical efficiency of organic agriculture: a quantitative review," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 117(2), pages 1-11, August.
    7. Key, Nigel, . "Direct-to-Consumer Marketing and the Survival and Growth of Beginning Farms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(01).
    8. Aniah Dominic Avea & Jing Zhu & Xu Tian & Tomas Baležentis & Tianxiang Li & Michael Rickaille & William Funsani, 2016. "Do NGOs and Development Agencies Contribute to Sustainability of Smallholder Soybean Farmers in Northern Ghana—A Stochastic Production Frontier Approach," Sustainability, MDPI, vol. 8(5), pages 1-17, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stefani, Gianluca & Gadanakis, Yiorgos & Lombardi, Ginevra Virginia & Tiberti, Marco, "undated". "The impact of financial leverage on farms capacity to react in market shocks," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261156, European Association of Agricultural Economists.
    2. Carter, Colin A. & Estrin, Andrew J., 2001. "Market Reforms Versus Structural Reforms in Rural China," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 527-541, September.
    3. Richard Nehring & Jorge Fernandez-Cornejo & David Banker, 2005. "Off-farm labour and the structure of US agriculture: the case of corn/soybean farms," Applied Economics, Taylor & Francis Journals, vol. 37(6), pages 633-649.
    4. Lota D. Tamini & Bruno Larue & Gale West, 2012. "Technical and environmental efficiencies and best management practices in agriculture," Applied Economics, Taylor & Francis Journals, vol. 44(13), pages 1659-1672, May.
    5. W. Mark Brown & Shon M. Ferguson & Crina Viju‐Miljusevic, 2020. "Farm Size, Technology Adoption and Agricultural Trade Reform: Evidence from Canada," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 676-697, September.
    6. Ogundari, K. & Brümmer, Bernhard, 2011. "Estimating Technical Efficiency, Input substitution and complementary effects using Output Distance Function: A study of Cassava production in Nigeria," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2).
    7. V.V. Spitsin & A. Mikhalchuk & Darko B. Vukovic & L.Y. Spitsina, 2023. "Technical Efficiency of High-Technology Industries in the Crisis: Evidence from Russia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 200-225, March.
    8. Pytrik Reidsma & Alfons Oude Lansink & Frank Ewert, 2009. "Economic impacts of climatic variability and subsidies on European agriculture and observed adaptation strategies," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(1), pages 35-59, January.
    9. Kang, Hye-Jung & Lee, Hyunok & Sumner, Daniel A., 2003. "Heterogeneity In Production Technology Across Farm Sizes: Analysis Of Multi-Output Production Function Using Korean Farm-Level Panel Data," 2003 Annual meeting, July 27-30, Montreal, Canada 22245, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Kellermann, Magnus A., 2015. "Total Factor Productivity Decomposition and Unobserved Heterogeneity in Stochastic Frontier Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(01), pages 1-25, April.
    11. B. Defloor & L. Van Ootegem & E. Verhofstadt, 2010. "A distance function approach to school-leavers efficiency in the school-to-work transition," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 10/682, Ghent University, Faculty of Economics and Business Administration.
    12. Belotti, Federico & Ilardi, Giuseppe, 2018. "Consistent inference in fixed-effects stochastic frontier models," Journal of Econometrics, Elsevier, vol. 202(2), pages 161-177.
    13. Stéphane Blancard, 2006. "Financial Exposure and Productive Performance in French Arable Farms," Economics Bulletin, AccessEcon, vol. 4(15), pages 1-9.
    14. Sauer, Johannes, "undated". "Quota Deregulation and Organic versus Conventional Milk – A Bayesian Distance Function Approach," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36869, Agricultural Economics Society.
    15. Sophia Davidova & Laure Latruffe, 2004. "Technical efficiency and farm financial management in countries in transition," Post-Print hal-02283462, HAL.
    16. Jiang, Chunxia & Yao, Shujie & Zhang, Zongyi, 2009. "The effects of governance changes on bank efficiency in China: A stochastic distance function approach," China Economic Review, Elsevier, vol. 20(4), pages 717-731, December.
    17. Hadley, David & Shankar, Bhavani & Thirtle, Colin G. & Coelli, Tim J., 2001. "Financial Exposure, Technical Change And Farm Efficiency: Evidence From The England And Wales Dairy Sector," 2001 Annual meeting, August 5-8, Chicago, IL 20656, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Jaenicke, Edward C. & Larson, James A., 2001. "Production Risk Revisited In A Stochastic Frontier Framework: Evaluating Noise And Inefficiency In Cover Crop Systems," 2001 Annual meeting, August 5-8, Chicago, IL 20477, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Barra, Cristian & Lagravinese, Raffaele & Zotti, Roberto, 2018. "Does econometric methodology matter to rank universities? An analysis of Italian higher education system," Socio-Economic Planning Sciences, Elsevier, vol. 62(C), pages 104-120.
    20. Agasisti, Tommaso & Barra, Cristian & Zotti, Roberto, 2016. "Evaluating the efficiency of Italian public universities (2008–2011) in presence of (unobserved) heterogeneity," Socio-Economic Planning Sciences, Elsevier, vol. 55(C), pages 47-58.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:2:y:2010:i:1:p:189-203:d:6759. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.