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Learning in Organic Farming An Application on Finnish Dairy Farms

Author

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  • Sipilainen, Timo
  • Oude Lansink, Alfons G.J.M.

Abstract

Organic farming technology may be relatively unknown to farmers at the time when they switch from conventional into organic farming. Therefore, experience gained over time and learning by doing may be important determinants in the efficiency of organic farming. It may also take time to reach the optimal nutrient stock of soil and optimal nutrient supply for arable crops under organic farming. Thus, efficiency of organic farming can either grow or decrease over time depending on the nature of the technology and the learning process. This paper estimates technical efficiency of organic farming and its development over time. We control for possible selection bias and regional heterogeneity when estimating a stochastic frontier distance functions for a sample of conventional and organic dairy farms in Finland. The results suggest that organic dairy farms are less technically efficient than conventional farms. Technical efficiency at first diminishes when the conversion towards organic production starts. After 6 years from the switch, technical efficiency starts to increase again. The estimates signal that the length of the conversion and learning process of organic farming is in average 6-7 years.

Suggested Citation

  • Sipilainen, Timo & Oude Lansink, Alfons G.J.M., 2005. "Learning in Organic Farming An Application on Finnish Dairy Farms," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24493, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae05:24493
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    File URL: http://ageconsearch.umn.edu/record/24493/files/cp05si01.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sauer, Johannes & Park, Tim, 2009. "Organic farming in Scandinavia -- Productivity and market exit," Ecological Economics, Elsevier, vol. 68(8-9), pages 2243-2254, June.
    2. Serra, Teresa & Chambers, Robert G. & Oude Lansink, Alfons, 2014. "Measuring technical and environmental efficiency in a state-contingent technology," European Journal of Operational Research, Elsevier, vol. 236(2), pages 706-717.
    3. González-Flores, Mario & Bravo-Ureta, Boris E. & Solís, Daniel & Winters, Paul, 2014. "The impact of high value markets on smallholder productivity in the Ecuadorean Sierra: A Stochastic Production Frontier approach correcting for selectivity bias," Food Policy, Elsevier, vol. 44(C), pages 237-247.
    4. 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).
    5. Minviel, Jean Joseph & De Witte, Kristof, 2017. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1112-1120.
    6. Kantelhardt, Jochen & Kirchweger, Stefan, 2015. "Matching Efficiency Results of Organic Farms," 2015 Conference, August 9-14, 2015, Milan, Italy 212024, International Association of Agricultural Economists.
    7. 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.
    8. Bouali Guesmi & Teresa Serra & Allen Featherstone, 2015. "Technical efficiency of Kansas arable crop farms: a local maximum likelihood approach," Agricultural Economics, International Association of Agricultural Economists, vol. 46(6), pages 703-713, November.
    9. Rosemarie Bégin & Lota D. Tamini & Maurice Doyon, 2014. "L'effet du travail hors-ferme sur l'efficacité technique des fermes laitières québécoises: un modèle intégrant les biais de sélection sur les observables et inobservables," Cahiers de recherche CREATE 2014-9, CREATE.
    10. Wollni, Meike & Brümmer, Bernhard, 2012. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Food Policy, Elsevier, vol. 37(1), pages 67-76.
    11. Mugonola, Basil & Vranken, Liesbet & Maertens, Miet & Deckers, Jozef & Taylor, Daniel B & Bonabana-Wabbi, Jackline & Mathijs, Erik, 2013. "Soil and water conservation technologies and technical efficiency in banana production in upper Rwizi micro-catchment, Uganda," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 0(Number 1), pages 1-16, July.

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