TY - JOUR
T1 - Analysing Production Technology and Risk in Organic and Conventional Dutch Arable Farming using Panel Data
AU - Gardebroek, C.
AU - Chavez Clemente, M.D.
AU - Oude Lansink, A.G.J.M.
N1 - PORmapnr. 1929
PY - 2010
Y1 - 2010
N2 - Abstract
This paper compares the production technology and production risk of organic
and conventional arable farms in the Netherlands. Just–Pope production functions
that explicitly account for output variability are estimated using panel data
of Dutch organic and conventional farms. Prior investigation of the data indicates
that within variation of output is significantly higher for organic farms,
indicating that organic farms face more output variation than conventional
farms. The estimation results indicate that in both types of farms, unobserved
farm-specific factors like management skills and soil quality are important in
explaining output variability and production risk. The results further indicate
that land has the highest elasticity of production for both farm types. Labour
and other variable inputs have significant production elasticities in the case of
conventional farms and other variable inputs in the case of organic farms. Manure
and fertilisers are risk-increasing inputs on organic farms and risk-reducing
inputs on conventional farms. Other variable inputs and labour are risk increasing
on both farm types; capital and land are risk-reducing inputs.
Keywords: Organic and conventional production; panel data; production risk.
AB - Abstract
This paper compares the production technology and production risk of organic
and conventional arable farms in the Netherlands. Just–Pope production functions
that explicitly account for output variability are estimated using panel data
of Dutch organic and conventional farms. Prior investigation of the data indicates
that within variation of output is significantly higher for organic farms,
indicating that organic farms face more output variation than conventional
farms. The estimation results indicate that in both types of farms, unobserved
farm-specific factors like management skills and soil quality are important in
explaining output variability and production risk. The results further indicate
that land has the highest elasticity of production for both farm types. Labour
and other variable inputs have significant production elasticities in the case of
conventional farms and other variable inputs in the case of organic farms. Manure
and fertilisers are risk-increasing inputs on organic farms and risk-reducing
inputs on conventional farms. Other variable inputs and labour are risk increasing
on both farm types; capital and land are risk-reducing inputs.
Keywords: Organic and conventional production; panel data; production risk.
KW - technical efficiency
KW - systems
KW - netherlands
U2 - 10.1111/j.1477-9552.2009.00222.x
DO - 10.1111/j.1477-9552.2009.00222.x
M3 - Article
SN - 0021-857X
VL - 61
SP - 60
EP - 75
JO - Journal of Agricultural Economics
JF - Journal of Agricultural Economics
IS - 1
ER -