Do consumers value hydroponics? Implications for organic certification

Daniel N. Gilmour, Claudia Bazzani, Rodolfo Nayga and Heather A. Snell

Agricultural Economics, 2019, vol. 50, issue 6, 707-721

Abstract: Recent controversy about the inclusion of hydroponics in the U.S. Department of Agriculture (USDA) organic program has highlighted uncertainty about marketing hydroponic crops. In a controversial vote in November 2017, the National Organic Standards Board chose not to recommend that hydroponic farms be banned from organic certification. It is still unclear, however, how consumers perceive and value hydroponic production. This study used a nonhypothetical choice experiment to estimate consumers’ willingness to pay for hydroponic and traditional lettuce both with and without organic certification. No hydroponic premium was found, but exposing consumers to different kinds of information about hydroponics significantly affected consumers’ preference formation. Findings generally suggest that the National Organic Program should consider ways to ensure the stability of organic premiums as perceptions about hydroponics evolve.

Date: 2019
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