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I will never switch sides: an experimental approach to determine drivers for investment decisions of conventional and organic hog farmers

Daniel Hermann, Oliver Musshoff () and Katrin Agethen

No 183084, 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia from European Association of Agricultural Economists

Abstract: Despite the economic benefits of organic farming, the conversion rates to this production method are low. The reasons for this reluctance are largely unknown; however, they are important for policy recommendations. Therefore, we experimentally investigate and compare the investment behavior of organic and conventional hog farmers. We examine the question of whether the investment behavior depends on the framing of the investment possibility as organic or conventional. The results provide evidence that investment decisions depend on the framing of an investment possibility and thus reveal that current subsidy structures may be inefficient for encouraging farmers to convert.

Keywords: Farm; Management (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-exp
Date: 2014-08
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