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Local Selling Decisions and the Technical Efficiency of Organic Farms

Author

Listed:
  • Luanne Lohr

    (Food and Specialty Crops, Economic Research Service, USDA, 1800 M. St. NW, Washington, DC 20036-5831, USA)

  • Timothy Park

    (Food Marketing Branch, Economic Research Service, USDA, 1800 M. St. NW, Washington, DC 20036-5831, USA)

Abstract

The primary purpose of this paper is to examine the factors that influence earned income of organic farmers explicitly incorporating farmer decisions to engage in local selling. The stochastic frontier model identifies role model producers who are the most technically efficient in achieving the maximum output that is feasible with a given set of inputs along with farm and demographic factors that enhance efficiency. Organic earnings equations that control for producer and farm characteristics reveal that organic farmers who are involved in local sales achieve lower earnings. Producer involvement in local sales has little impact on observed technical efficiency on organic farms.

Suggested Citation

  • Luanne Lohr & Timothy Park, 2010. "Local Selling Decisions and the Technical Efficiency of Organic Farms," Sustainability, MDPI, vol. 2(1), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:2:y:2010:i:1:p:189-203:d:6759
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    References listed on IDEAS

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    1. Catherine J. Morrison Paul & Warren E. Johnston & Gerald A. G. Frengley, 2000. "Efficiency in New Zealand Sheep and Beef Farming: The Impacts of Regulatory Reform," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 325-337, May.
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    Cited by:

    1. Mirela Ionela Aceleanu, 2016. "Sustainability and Competitiveness of Romanian Farms through Organic Agriculture," Sustainability, MDPI, vol. 8(3), pages 1-19, March.
    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. Pierre Chiaverina & Sophie Drogué & Florence Jacquet & Larry Lev & Robert King, 2023. "Does short food supply chain participation improve farm economic performance? A meta‐analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 54(3), pages 400-413, May.
    4. Bagi, Faqir Singh & Reeder, Richard, 2012. "Farm Activities Associated With Rural Development Initiatives," Economic Research Report 262232, United States Department of Agriculture, Economic Research Service.
    5. Anna Gaviglio & Rosalia Filippini & Fabio Albino Madau & Maria Elena Marescotti & Eugenio Demartini, 2021. "Technical efficiency and productivity of farms: a periurban case study analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-18, December.
    6. Filippo Sgroi & Matteo Candela & Anna Maria Di Trapani & Mario Foderà & Riccardo Squatrito & Riccardo Testa & Salvatore Tudisca, 2015. "Economic and Financial Comparison between Organic and Conventional Farming in Sicilian Lemon Orchards," Sustainability, MDPI, vol. 7(1), pages 1-15, January.
    7. Key, Nigel, . "Direct-to-Consumer Marketing and the Survival and Growth of Beginning Farms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(1).
    8. Aniah Dominic Avea & Jing Zhu & Xu Tian & Tomas Baležentis & Tianxiang Li & Michael Rickaille & William Funsani, 2016. "Do NGOs and Development Agencies Contribute to Sustainability of Smallholder Soybean Farmers in Northern Ghana—A Stochastic Production Frontier Approach," Sustainability, MDPI, vol. 8(5), pages 1-17, May.

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