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Modelling Farm Level Economic Potential for Conversion to Organic Farming

Author

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  • Kerselaers, Eva
  • Govaerts, Wim
  • Lauwers, Ludwig H.
  • De Cock, Lieve
  • Van Huylenbroeck, Guido

Abstract

A farm model is developed for simulating the potential income change resulting from conversion to organic farming. The model uses conventional farm data, taken from the Belgian FADN. Given the normative character of the model, and the impossibility of calibration to historical conversion behaviour, two model variants, a rigid and a flexible, are created to broaden the analysis scope. Moreover, extra attention is paid to the verification process and sensitivity analysis. Results reveal that the economic potential for conversion is rather high, if farmers are willing to change their farm management sufficiently. Furthermore, conversion potential depends on the farm type and conventional farm characteristics. The model finally proves to be an interesting tool to analyse policy impact.

Suggested Citation

  • Kerselaers, Eva & Govaerts, Wim & Lauwers, Ludwig H. & De Cock, Lieve & Van Huylenbroeck, Guido, 2005. "Modelling Farm Level Economic Potential for Conversion to Organic Farming," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24732, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae05:24732
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    File URL: http://purl.umn.edu/24732
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    References listed on IDEAS

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    1. Falconer, Katherine & Hodge, Ian, 2001. "Pesticide taxation and multi-objective policy-making: farm modelling to evaluate profit/environment trade-offs," Ecological Economics, Elsevier, vol. 36(2), pages 263-279, February.
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    Cited by:

    1. Madau, Fabio A., 2007. "Technical Efficiency in Organic and Conventional Farming: Evidence from Italian Cereal Farms," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 8(1), January.
    2. Van Huylenbroeck, Guido & Lauwers, Ludwig H. & Fernagut, Bruno, 2006. "New Developments in Agricultural Policy Modelling and Consequences for Managing the Policy Analysis Systems," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25256, International Association of Agricultural Economists.

    More about this item

    Keywords

    organic farming; conversion period; farm model; linear programming; Environmental Economics and Policy; Farm Management; C61; Q12;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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