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Factors influencing organic farm income in Chitwan district of Nepal

Author

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  • Singh, Mrinila
  • Maharjan, Keshav Lall
  • Maskey, Bijan

Abstract

Premium price is one of the most attractive features of organic farming but having access to one possess various difficulties, especially in the context of developing countries. The objective of this study is to analyze factors impacting involvement in marketing of crops and intensity of income generation therein between organic and conventional farmers by taking into consideration the existence of premium market. It was conducted in semi-urban Chitwan district of Nepal where group conversion to organic farming exists. Data from 285 respondents, selected using stratified sampling method, were analyzed using probit and ordinary least square model. This study finds that income from organic farming is less than conventional farming because production per hectare, commercialization rate and price at which the crops are sold per unit is higher for conventional farm, and access to premium market is very limited. This should be the primary focus for making organic farming monetarily attractive.

Suggested Citation

  • Singh, Mrinila & Maharjan, Keshav Lall & Maskey, Bijan, 2015. "Factors influencing organic farm income in Chitwan district of Nepal," 2015 Conference, August 9-14, 2015, Milan, Italy 212234, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:212234
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    File URL: http://purl.umn.edu/212234
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    References listed on IDEAS

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    1. Barrett, H. R. & Browne, A. W. & Harris, P. J. C. & Cadoret, K., 2002. "Organic certification and the UK market: organic imports from developing countries," Food Policy, Elsevier, vol. 27(4), pages 301-318, August.
    2. Nhemachena, Charles & Hassan, Rashid M., 2007. "Micro-level analysis of farmers' adaptation to climate change in Southern Africa:," IFPRI discussion papers 714, International Food Policy Research Institute (IFPRI).
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    4. Sipilainen, Timo & Marklund, Per-Olov & Huhtala, Anni, 2008. "Efficiency In Agricultural Production Of Biodiversity: Organic Vs. Conventional Practices," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6478, European Association of Agricultural Economists.
    5. Olivier Brandouy & Jean-Paul Delahaye & Lin Ma, 2014. "A computational definition of financial randomness," Quantitative Finance, Taylor & Francis Journals, vol. 14(5), pages 761-770, May.
    6. Sharada Weir, 1999. "The effects of education on farmer productivity in rural Ethiopia," CSAE Working Paper Series 1999-07, Centre for the Study of African Economies, University of Oxford.
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    Keywords

    Crop Production/Industries; International Development; Livestock Production/Industries;

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