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Determinants of Premiums Received by Organic Field Crop Producers

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  • Ross D. Heiman
  • Hikaru Hanawa Peterson

Abstract

According to shipment records of an organic marketing cooperative from 2003 to 2005, organic corn and soybean premiums exceeded 100% of the conventional prices, while organic premiums for wheat varieties averaged 85%. For all organic crops included in this study, except soybeans, the premiums varied by idiosyncratic differences in shipment characteristics. On average, crops contracted during the quarters following harvest received smaller premiums than those contracted during the harvest quarter, and longer contract horizons were associated with higher premiums. The findings support the growing demands for organic field crops over the sample period, particularly for corn and soybeans.

Suggested Citation

  • Ross D. Heiman & Hikaru Hanawa Peterson, 2008. "Determinants of Premiums Received by Organic Field Crop Producers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(4), pages 729-749.
    • Handle: RePEc:oup:revage:v:30:y:2008:i:4:p:729-749.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2008.00443.x
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    References listed on IDEAS

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    1. Welsh, Rick, 1999. "The Economics of Organic Grain and Soybean Production in the Midwestern United States," Policy Studies Program Reports, Henry A. Wallace Institute for Alternative Agriculture, number 134120, March.
    2. Foreman, Linda F., 2006. "Characteristics and Production Costs of U.S. Corn Farms, 2001," Economic Information Bulletin 7205, United States Department of Agriculture, Economic Research Service.
    3. Foreman, Linda F., 2001. "Characteristics and Production Costs of U.S. Corn Farms," Statistical Bulletin 262285, United States Department of Agriculture, Economic Research Service.
    4. Peterson, Hikaru Hanawa & Tomek, William G., 2007. "Grain Marketing Strategies Within and Across Lifetimes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(1), pages 1-20, April.
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