CONVERSION SUBSIDIES FOR ORGANIC PRODUCTION: RESULTS FROM SWEDEN AND LESSONS FOR THE UNITED STATES

Luanne Lohr and Lennart Salomonsson

No 16640, Faculty Series from University of Georgia, Department of Agricultural and Applied Economics

Abstract: Environmental and social justifications for organic conversion subsidies are as pervasive in the United States as in Europe, but national policy does not explicitly support organic agriculture. Using Sweden's experience, we analyze factors that affect whether a subsidy is required to motivate organic conversion. We use a utility difference model to compare farmers who converted before and after the subsidy. Significant factors in conversion without subsidies are greater livestock diversity and more sales outlets. Farmers requiring subsidies manage larger farms, are more concerned with organic inspection quality and adequacy of technical advice, and reside in areas with more organic farms. Results suggest that a subsidy induces mainly those already inclined toward organic agriculture to convert. Limited exposure to organic systems and a marketing and technical information infrastructure designed to support conventional agriculture restrict the potential effect of a conversion subsidy in the United States.

Keywords: Agricultural and Food Policy; Production Economics (search for similar items in EconPapers)
Pages: 26
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://ageconsearch.umn.edu/record/16640/files/fs9804.pdf (application/pdf)

Related works:
Journal Article: Conversion subsidies for organic production: results from Sweden and lessons for the United States (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ugeofs:16640

DOI: 10.22004/ag.econ.16640

Access Statistics for this paper

More papers in Faculty Series from University of Georgia, Department of Agricultural and Applied Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().