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Analysing Profits and Economic Behaviour of Organic and Conventional Dutch Arable Farms

Author

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  • Oude Lansink, Alfons G.J.M.
  • Jensma, Klaske

Abstract

This paper uses a micro-econometric model to analyse differences in variable profits and economic behaviour between organic and conventional arable farms. Insight in factors underlying these differences is essential in designing policy measures that aim at encouraging the transition to a more sustainable farming practice. The framework is applied to a rotating panel of Dutch conventional and organic arable farms over the period 1990-1999. The results show that the, on average larger variable profit of organic farms is mainly associated with the use of land and technological changes. The shadow price of labour suggests over-use of labour on organic arable farms. Demand for pesticides and supply of output are generally more elastic on organic farms. Furthermore, organic farmers that increase the size of their farm are found to become more dependent on the use of pesticides and are found to increase the intensity of the use of land.

Suggested Citation

  • Oude Lansink, Alfons G.J.M. & Jensma, Klaske, 2003. "Analysing Profits and Economic Behaviour of Organic and Conventional Dutch Arable Farms," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 4(2), pages 1-13, August.
    • Handle: RePEc:ags:aergaa:26445
    DOI: 10.22004/ag.econ.26445
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    Citations

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    Cited by:

    1. Ferto, Imre & Forgacs, Csaba, 2009. "Is organic farming a chance for family farms to survive?," 111th Seminar, June 26-27, 2009, Canterbury, UK 52862, European Association of Agricultural Economists.
    2. Teresa Serra & David Zilberman & José M. Gil, 2008. "Differential uncertainties and risk attitudes between conventional and organic producers: the case of Spanish arable crop farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 219-229, September.
    3. Tzouramani, Irene & Karanikolas, Pavlos & Alexopoulos, George, 2008. "Risk and Income Risk Management Issues for Organic Crops in Greece," 108th Seminar, February 8-9, 2008, Warsaw, Poland 48116, European Association of Agricultural Economists.
    4. Argiles, Josep M. & Brown, Nestor Duch, 2011. "A comparison of the economic and environmental performances of conventional and organic farming: evidence from financial statements," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), pages 1-18, January.
    5. Cornelis Gardebroek & María Daniela Chavez & Alfons Oude Lansink, 2010. "Analysing Production Technology and Risk in Organic and Conventional Dutch Arable Farming using Panel Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 60-75, February.
    6. Guesmi, Bouali & Serra, Teresa & Radwan, Amr & Gil, José María, 2014. "Efficiency of Egyptian Organic Agriculture: a Local Maximum Likelihood Approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183023, European Association of Agricultural Economists.
    7. Saem Lee & Trung Thanh Nguyen & Patrick Poppenborg & Hio-Jung Shin & Thomas Koellner, 2016. "Conventional, Partially Converted and Environmentally Friendly Farming in South Korea: Profitability and Factors Affecting Farmers’ Choice," Sustainability, MDPI, vol. 8(8), pages 1-18, July.
    8. Zein Kallas & Teresa Serra & José Maria Gil, 2010. "Farmers’ objectives as determinants of organic farming adoption: the case of Catalonian vineyard production," Agricultural Economics, International Association of Agricultural Economists, vol. 41(5), pages 409-423, September.
    9. Argiles, Josep M. & Brown, Nestor Duch, 2011. "A comparison of the economic and environmental performances of conventional and organic farming: evidence from financial statements," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), pages 1-18, January.
    10. Teresa Serra & Barry Goodwin, 2009. "The efficiency of Spanish arable crop organic farms, a local maximum likelihood approach," Journal of Productivity Analysis, Springer, vol. 31(2), pages 113-124, April.
    11. Bouali Guesmi & Teresa Serra & Amr Radwan & José María Gil, 2018. "Efficiency of Egyptian organic agriculture: A local maximum likelihood approach," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 441-455, March.
    12. 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).

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    Keywords

    Crop Production/Industries;

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