Determinants of Premiums Received by Organic Field Crop Producers

Ross D. Heiman and Hikaru Hanawa Peterson

Review of Agricultural Economics, 2008, vol. 30, issue 4, 729-749

Abstract: According to shipment records of an organic marketing cooperative from 2003 to 2005, organic corn and soybean premiums exceeded 100% of the conventional prices, while organic premiums for wheat varieties averaged 85%. For all organic crops included in this study, except soybeans, the premiums varied by idiosyncratic differences in shipment characteristics. On average, crops contracted during the quarters following harvest received smaller premiums than those contracted during the harvest quarter, and longer contract horizons were associated with higher premiums. The findings support the growing demands for organic field crops over the sample period, particularly for corn and soybeans.

Date: 2008
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