Comparing support for organic and conventional farming in the European Union using an adjusted Producer Support Estimate

Stephan Hubertus Gay and Frank Offermann

European Review of Agricultural Economics, 2006, vol. 33, issue 1, 31-48

Abstract: This paper compares support for organic and conventional farming in 2001, using the methodology of the Producer Support Estimate (PSE). Although market price support for organic products is difficult to determine, our case study-based estimates indicate that the PSE for organic farming ranged between 41 and 44 per cent in the EU, compared with 35 per cent for conventional farming. However, the structure of support for the different commodities is similar between organic and conventional farming, although direct payments are generally higher for organic farming. No clear link between the level of support and the share of organic farming in Member States could be detected. An annual calculation of separate PSEs for both forms of farming could provide useful information about developments in support. Copyright 2006, Oxford University Press.

Date: 2006
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European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

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