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Organic cultivation and farmland prices: Does certification matter?

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  • Stefan Seifert
  • Silke Hüttel
  • Axel Werwatz

Abstract

Organic cultivation offers environmental benefits such as improved soil functioning; however, whether an organic cultivation history capitalizes in farmland values remains unclear. We analyse price differentials between organic and conventional arable land in Brandenburg, Germany, using detailed land transaction data and longitudinal land-use data. Based on a doubly robust approach combining matching and regression, we find on average no price differential between organic and conventional farmland at the time of sale. Investigating effect heterogeneity over time, in space, and by post-sale use indicates that this null effect comprises markups and markdowns for organic farmland.

Suggested Citation

  • Stefan Seifert & Silke Hüttel & Axel Werwatz, 2025. "Organic cultivation and farmland prices: Does certification matter?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 52(4), pages 848-911.
    • Handle: RePEc:oup:erevae:v:52:y:2025:i:4:p:848-911.
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    File URL: http://hdl.handle.net/10.1093/erae/jbaf026
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