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A Whole-Farm Profitability Analysis of Organic and Conventional Cropping Systems

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  • Delbridge, Timothy A.
  • Fernholz, Carmen
  • Lazarus, William F.
  • King, Robert P.

Abstract

Previous studies have found that organic crop production in the midwestern United States can be more profitable than conventional crop production. However, these studies have failed to consider potential differences in farm size between the two systems. If an organic crop rotation cannot be managed on as large an area as a conventional rotation given the same resources, a per-hectare profitability advantage for the organic system would not necessarily translate into a whole-farm profitability advantage.
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Suggested Citation

  • Delbridge, Timothy A. & Fernholz, Carmen & Lazarus, William F. & King, Robert P., 2011. "A Whole-Farm Profitability Analysis of Organic and Conventional Cropping Systems," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103790, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103790
    DOI: 10.22004/ag.econ.103790
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    Cited by:

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    2. M. Kavka & M. Mimra & F. Kumhála, 2016. "Sensitivity analysis of key operating parameters of combine harvesters," Research in Agricultural Engineering, Czech Academy of Agricultural Sciences, vol. 62(3), pages 113-121.
    3. Wieme, Rachel A. & Carpenter-Boggs, Lynne A. & Crowder, David W. & Murphy, Kevin M. & Reganold, John P., 2020. "Agronomic and economic performance of organic forage, quinoa, and grain crop rotations in the Palouse region of the Pacific Northwest, USA," Agricultural Systems, Elsevier, vol. 177(C).
    4. Skydan, Oleg & Nykolyuk, Olga & Chaikin, Oleksandr & Shukalovych, Vasyl, 2021. "Concept of fractal organization of organic business systems," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(2), June.
    5. Pashaei Kamali, Farahnaz & Borges, João A.R. & Meuwissen, Miranda P.M. & de Boer, Imke J.M. & Oude Lansink, Alfons G.J.M., 2017. "Sustainability assessment of agricultural systems: The validity of expert opinion and robustness of a multi-criteria analysis," Agricultural Systems, Elsevier, vol. 157(C), pages 118-128.
    6. Riccardo Testa & Anna Maria di Trapani & Filippo Sgroi & Salvatore Tudisca, 2014. "Economic Sustainability of Italian Greenhouse Cherry Tomato," Sustainability, MDPI, vol. 6(11), pages 1-15, November.
    7. Cox, William & Hanchar, John, 2016. "Agronomic and Economic Performance of Soybean as an Entry Crop to an Organic Cropping System following Conventional Corn, Spring Barley, or Soybean," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235318, Agricultural and Applied Economics Association.
    8. Kwamina Ewur Banson & Nam C. Nguyen & Ockie J. H. Bosch, 2016. "Using System Archetypes to Identify Drivers and Barriers for Sustainable Agriculture in Africa: A Case Study in Ghana," Systems Research and Behavioral Science, Wiley Blackwell, vol. 33(1), pages 79-99, January.
    9. Delbridge, Timothy A. & King, Robert P., 2016. "Transitioning to Organic Crop Production: A Dynamic Programming Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-18, September.
    10. McBride, William D. & Greene, Catherine & Foreman, Linda & Ali, Mir, 2015. "The Profit Potential of Certified Organic Field Crop Production," Economic Research Report 262208, United States Department of Agriculture, Economic Research Service.
    11. Khanal, Aditya R. & Mishra, Sachin K & Honey, Ummey, 2018. "Certified organic food production, financial performance, and farm size: An unconditional quantile regression approach," Land Use Policy, Elsevier, vol. 78(C), pages 367-376.
    12. Delbridge, Timothy A., 2014. "Comparative Profitability of Organic and Conventional Cropping Systems: An Update to Per-Hectare and Whole-Farm Analysis," Staff Papers 164685, University of Minnesota, Department of Applied Economics.
    13. Heinrichs, J. & Kuhn, T. & Pahmeyer, C. & Britz, W., 2021. "Economic effects of plot sizes and farm-plot distances in organic and conventional farming systems: A farm-level analysis for Germany," Agricultural Systems, Elsevier, vol. 187(C).
    14. Delate, Kathleen & Cambardella, Cynthia & Chase, Craig & Turnbull, Robert, 2015. "A Review of Long-Term Organic Comparison Trials in the U.S," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 4(3 Special).
    15. Froehlich, Anderson G. & Melo, Andrea S.S.A. & Sampaio, Breno, 2018. "Comparing the Profitability of Organic and Conventional Production in Family Farming: Empirical Evidence From Brazil," Ecological Economics, Elsevier, vol. 150(C), pages 307-314.
    16. Cox, W., 2018. "Agronomic and Economic Performance of Maize, Soybean, and Wheat in Different Rotations during the Transition to an Organic Cropping System," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276954, International Association of Agricultural Economists.
    17. Vlašicová, Eliška & Náglová, Zdeňka, 2015. "Differences in the Economic Situation of Organic and Conventional Winemaking Enterprises," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(3), pages 1-9, September.
    18. Carls, Emily & Griffin, Terry & Ibendahl, Gregory, 2018. "Farm Management Implications of Transitioning from Conventional to Organic Production: An Application of Whole-Farm Linear Programming Model to Examine Transition Period," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266685, Southern Agricultural Economics Association.

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    Keywords

    Crop Production/Industries; Farm Management; Risk and Uncertainty;
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