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Technical efficiency of organic milk-farms in Germany - the role of subsidies and of regional factors

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  • Lakner, Sebastian

Abstract

This paper investigates the efficiency of organic milk farms in Germany based on data from 1994/95 to 2005/06. Five inputs and one output are analyzed by means of a stochastic frontier production function, allowing for heteroscedasticity and technical effects. The selection of determinants of technical efficiency includes 5 groups of indicators. The analysis is focused on the impacts of farm support of organic farms and of regional factors, that can influence technical efficiency. The results show, that the agri-environmental payments show a negative effect on efficiency. Farms, which receive investment aid, show lower efficiency scores. Finally, the implication for agricultural policy are discussed.

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  • Lakner, Sebastian, 2009. "Technical efficiency of organic milk-farms in Germany - the role of subsidies and of regional factors," 2009 Conference, August 16-22, 2009, Beijing, China 51301, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51301
    DOI: 10.22004/ag.econ.51301
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    Cited by:

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    2. 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.
    3. Mamardashvili, Phatima & Bokusheva, Raushan & Schmid, Dierk, 2014. "Heterogeneous Farm Output and Technical Efficiency Estimates," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(1).
    4. Maria Martinez Cillero & Michael Wallace & Fiona Thorne & James Breen, 2021. "Analyzing the Impact of Subsidies on Beef Production Efficiency in Selected European Union Countries. A Stochastic Metafrontier Approach," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1903-1923, October.
    5. Marie-Noelle Duquenne & Maria Tsiapa & Valantis Tsiakos, 2019. "Contribution of the Common Agricultural Policy to agricultural productivity of EU regions during 2004–2012 period," Review of Agricultural, Food and Environmental Studies, Springer, vol. 100(1), pages 47-68, December.
    6. Rebecca Buttinelli & Raffaele Cortignani & Gabriele Dono, 2021. "Financial sustainability in Italian Organic Farms: An analysis of the FADN Sample," Economia agro-alimentare, FrancoAngeli Editore, vol. 23(3), pages 1-32.
    7. Plogmann, Jana & Mußhoff, Oliver & Odening, Martin & Ritter, Matthias, 2022. "Farm growth and land concentration," Land Use Policy, Elsevier, vol. 115(C).
    8. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
    9. Dragan Milić & Tihomir Novaković & Dragana Tekić & Bojan Matkovski & Danilo Đokić & Stanislav Zekić, 2023. "Economic Sustainability of the Milk and Dairy Supply Chain: Evidence from Serbia," Sustainability, MDPI, vol. 15(21), pages 1-21, October.
    10. Marian Rizov & Jan Pokrivcak & Pavel Ciaian, 2013. "CAP Subsidies and Productivity of the EU Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 537-557, September.
    11. 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.
    12. Phatima MAMARDASHVILI & Dierk SCHMID, 2013. "Performance of Swiss dairy farms under provision of public goods," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(7), pages 300-314.
    13. Dudu, Hasan & Smeets Kristkova, Zuzana, 2017. "Impact of CAP Pillar II Payments on Agricultural Productivity," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261171, European Association of Agricultural Economists.
    14. Lakner, Sebastian & Kirchweger, Stefan & Hoop, Daniel & Brümmer, Bernhard & Kantelhardt, Jochen, 2015. "Impact of diversification on technical efficiency of organic farming in Switzerland, Austria and Southern Germany," DARE Discussion Papers 1508, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    15. Lakner, Sebastian & Kirchweger, Stefan & Hoop, Daniel & Brümmer, Bernhard & Kantelhardt, Jochen, 2014. "Technical Efficiency of Organic Farming in the Alpine Region – the Impact of Farm Structures and Policies," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182763, European Association of Agricultural Economists.
    16. Joanna Bereznicka & Ludwik Wicki, 2021. "Do Farm Subsidies Improve Labour Efficiency in Farms in EU Countries?," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 925-937.
    17. Sebastian Lakner & Stefan Kirchweger & Daniel Hoop & Bernhard Brümmer & Jochen Kantelhardt, 2018. "The Effects of Diversification Activities on the Technical Efficiency of Organic Farms in Switzerland, Austria, and Southern Germany," Sustainability, MDPI, vol. 10(4), pages 1-18, April.
    18. Mamardashvili, Phatima & Emvalomatis, Grigorios & Jan, Pierrick, 2016. "Environmental Performance and Shadow Value of Polluting on Swiss Dairy Farms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
    19. Mamardashvili, Phatima & Bokusheva, Raushan & Schmid, Dierk, 2014. "Heterogeneous Farm Output and Technical Efficiency Estimates," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(01), pages 1-15, March.
    20. Manevska-Tasevska, Gordana & Hansson, Helena & Asmild, Mette & Surry, Yves, 2021. "Exploring the regional efficiency of the Swedish agricultural sector during the CAP reforms ‒ multi-directional efficiency analysis approach," Land Use Policy, Elsevier, vol. 100(C).
    21. V. Santoni & M. Pulina, 2016. "An analysis on the Italian agricultural firms: effects of public subsidies," Working Paper CRENoS 201611, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    22. Baldoni, Edoardo & Ciaian, Pavel, 2023. "The capitalization of CAP subsidies into land prices in the EU," Land Use Policy, Elsevier, vol. 134(C).
    23. Stefano Orsini & Susanne Padel & Nic Lampkin, 2018. "Labour Use on Organic Farms: A Review of Research since 2000," Organic Farming, Librello publishing house, vol. 4(1), pages 7-15.
    24. Spiegel, Alisa & Coletta, Attilio & Severini, Simone, 2022. "The distortive effect of organic payments: An example of policy failure in the case of hazelnut plantation," Land Use Policy, Elsevier, vol. 119(C).
    25. Khafagy, Amr & Vigani, Mauro, 2022. "Technical change and the Common Agricultural Policy," Food Policy, Elsevier, vol. 109(C).

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