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Technical efficiency in organic and conventional farming: evidence from Italian cereal farms

Madau, Fabio Albino (2007) Technical efficiency in organic and conventional farming: evidence from Italian cereal farms. Agricultural Economics Review, Vol. 8 (1), p. 5-21. ISSN 1109-2580. Article.

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A stochastic frontier production model was applied to estimate technical efficiency in a sample of Italian organic and conventional cereal farms. The main purpose was to assess which production technique revealed higher efficiency. Statistical tests on the common production function model suggested that the two cultivation methods might lie on different frontiers. Separate analyses of two sub-samples (93 and 138 observations for organic and conventional farms, respectively) found that conventional farms were significantly more efficient than organic farms, with respect to their specific technology (0.902 vs. 0.831). Analysis also estimated that efficiency plays a crucial role into the factors affecting productivity in the organic process. Some policy implications can be drawn from these findings.

Item Type:Article
ID Code:4437
Uncontrolled Keywords:Organic farming, comparison analysis, cereal-growing, technical efficiency, stochastic frontier production models
Subjects:Area 07 - Scienze agrarie e veterinarie > AGR/01 Economia ed estimo rurale
Divisions:001 Università di Sassari > 01 Dipartimenti > Economia e sistemi arborei
Publisher:Greek Association of Agricultural Economics
Publisher Policy:Depositato per gentile concessione dell'Editore.
Deposited On:31 Aug 2010 17:45

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