Subproject: Agricultural Economics

Factors determining the efficiency of organic farming systems

Abstract

A rising number of farmers consider organic agriculture a financially attractive alternative to conventional farming systems. However, within the group of organic farms vast differences exist among farms in profitability and efficiency. This subproject sets out to answer the following questions: 1. How big are the differences in efficiency among organic farms? 2. Is their a link between profitability and technical efficiency? 3. What are the potential savings in inputs on inefficient holdings? 4. Which factors determine profitability and technical efficiency of organic farm holdings? Findings from this subproject should be of interest to farm consultants and policy makers as well as to farmers who consider converting their holdings to organic agriculture. A thorough assessment of the prospects for financially sustainable conversions can contribute to preventing unsuccessful conversions.

 

Keywords

efficiency analysis, data envelopment analysis, DEA, stochastic frontier analysis, SFA, optimal degree of specialization

 

Subproject Information

Project runtime: 2007-07-01 until 2011-06-30

Scientific coordination: Prof. Dr. Uwe Latacz-Lohmann

Scientific staff: MSc. N. Schulz; MSc. T. Tiedemann

Former staff: Dr. Günther Gubi

 




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