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Economic growth of farms: An empirical analysis on organic farming

Thelma Brenes Muñoz, Sebastian Lakner and Bernhard Brümmer

No 126756, 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists

Abstract: This article investigates which factors influence the economic growth of organic farms. Organic farming has experienced a substantial growth in Germany since the beginning of the 1990s until today. Most organic farms are concentrated in the southern region of the country, Bavaria and Baden-Wuerttemberg. While some of these farms have expanded their business size, others have contracted, reconverted to conventional or ceased to operate. Using a panel data of 318 farms and a System GMM method, the economic growth of organic farms is analyzed. Regression results suggest that organic farms with high revenue from agriculture are less likely to grow than smaller farms. Growth is influenced by livestock intensity, multiple job holding, share of grasslands areas, soil quality and agri-environmental payments for organic farming.

Keywords: Agricultural and Food Policy; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 21
Date: 2012
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae12:126756

DOI: 10.22004/ag.econ.126756

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