Local Selling Decisions and the Technical Efficiency of Organic Farms

Luanne Lohr and Timothy Park

Sustainability, 2010, vol. 2, issue 1, 1-15

Abstract: The primary purpose of this paper is to examine the factors that influence earned income of organic farmers explicitly incorporating farmer decisions to engage in local selling. The stochastic frontier model identifies role model producers who are the most technically efficient in achieving the maximum output that is feasible with a given set of inputs along with farm and demographic factors that enhance efficiency. Organic earnings equations that control for producer and farm characteristics reveal that organic farmers who are involved in local sales achieve lower earnings. Producer involvement in local sales has little impact on observed technical efficiency on organic farms.

Keywords: local foods; technical efficiency; stochastic frontier; Organic Farming Research Foundation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:2:y:2010:i:1:p:189-203:d:6759

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