Farmland Rental Rates: Does Organic Certification Matter?

Kate Binzen Fuller, Joseph Janzen and B. Munkhnasan
Authors registered in the RePEc Author Service: Munkhnasan Boldbaatar

Land Economics, 2021, vol. 97, issue 1, 80-106

Abstract: We estimate U.S. organic farmers’ marginal willingness to pay to rent an acre of certified organic land relative to conventional farmland. Using a selection-on-observables design and farm-level data on farmland rental rates, organic status, and many conditioning variables, we address the role of profitability in mediating the effect of organic status. We find a 26% rental rate premium for organic farmland not driven by higher profits on organic farms. This premium is a modest incentive for landowners but a barrier for tenants to convert to organic farming practices, which may explain limited growth in U.S. organic acreage.

JEL-codes: Q11 Q15 (search for similar items in EconPapers)
Date: 2021
Note: DOI: 10.3368/wple.97.1.030119-0032R2
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:97:y:2021:i:1:p:80-106

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