Organic cultivation and farmland prices: Does certification matter?

Stefan Seifert, Silke Hüttel and Axel Werwatz

No 28 (2023), FORLand Working Papers from Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation"

Abstract: This paper investigates price differentials between organically and conventionally farmed arable land. Organic commodities offer higher prices and environmental benefits such as improved soil constitution, where land buyers gauge these benefits against lower yields at higher risk, switching and higher production cost compared to conventional production. Combining land transaction and cover data from EU's Integrated Administrative Control System between 2005-2019, we test the hypothesis of positive valuation of organic cultivation, also for conventional use after sale. Based on a double robust approach, we find on average no effect but markups for conventional and markdowns for organic use post-sale.

Keywords: Organic agriculture; farmland pricing; Integrated Administrative Control System (IACS); ecosystem services; matching (search for similar items in EconPapers)
JEL-codes: Q15 Q24 Q51 R30 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-agr and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:forlwp:282023

DOI: 10.18452/26264

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