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Are all farms better-off growing organic? An unconditional quantile regression approach

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  • Khanal, Aditya
  • Mishra, Ashok

Abstract

We examined the impact of participation in certified organic production on farm earnings and net cash farm incomes of the US farm households. Using a nation-wide dataset and an unconditional quantile regression approach, we found a significant heterogeneous effect across different quantiles of farm earnings. Our results suggest that the effect of certified organic production is positive across the unconditional quantiles of net cash farm income but the effect is significantly larger for the farms with larger operations while smaller operations have low or non-significant effects.

Suggested Citation

  • Khanal, Aditya & Mishra, Ashok, 2016. "Are all farms better-off growing organic? An unconditional quantile regression approach," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235618, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235618
    DOI: 10.22004/ag.econ.235618
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    File URL: https://ageconsearch.umn.edu/record/235618/files/Organic_AAEA.pdf
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    References listed on IDEAS

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    1. Park, Timothy A., 2015. "Direct Marketing and the Structure of Farm Sales: An Unconditional Quantile Regression Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(2), pages 1-19, May.
    2. Tim O'Riordan & Dick Cobb, 2001. "Assessing the Consequences of Converting to Organic Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 22-35, January.
    3. Ashok K. Mishra & Kh. A. Mottaleb & Samarendu Mohanty, 2015. "Impact of off-farm income on food expenditures in rural Bangladesh: an unconditional quantile regression approach," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 139-148, March.
    4. Osteen, Craig D. & Vasavada, Utpal, 2012. "Agricultural Resources and Environmental Indicators, 2012 Edition," Economic Information Bulletin 132048, United States Department of Agriculture, Economic Research Service.
    5. Uematsu, Hiroki & Mishra, Ashok K., 2012. "Organic farmers or conventional farmers: Where's the money?," Ecological Economics, Elsevier, vol. 78(C), pages 55-62.
    6. Greene, Catherine, 2013. "Growth Patterns in the U.S. Organic Industry," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, issue 09, pages 1-1, October.
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    Cited by:

    1. Schorr, A. & Lips, M., 2018. "Influence of milk yield on profitability a quantile regression analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277000, International Association of Agricultural Economists.

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    Keywords

    Agribusiness; Consumer/Household Economics; Production Economics;
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