Farmer response to policies promoting organic farming technologies in Finland

K.S. Pietola, A.G.J.M. Oude Lansink

    Research output: Contribution to journalArticleAcademicpeer-review

    101 Citations (Scopus)


    This paper analyses factors determining the choice between standard and organic farming technology in Finland by numerically iterating a Bellman equation backwards in time. The unknown parameters of a switching-type Probit model are estimated by maximum likelihood estimation. The maximised values of the uncertain revenue streams are stimulated. The results suggest that decreasing output prices and increasing direct subsidies trigger the switch to organic farming. The switch is also more likely on farms having large land areas and low yields. Intensive livestock production and labour-intensive production decrease the probability of switching to organic farming.
    Original languageEnglish
    Pages (from-to)1-15
    JournalEuropean Review of Agricultural Economics
    Issue number1
    Publication statusPublished - 2001


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