Does the Adoption of Environmental Contracts Affect Farms' Productivity and Efficiency?

L’adoption de contrats environnementaux affecte-t-elle la productivité et l’efficacité des exploitations agricoles ?

Marie Lassalas (), Alejandro Plastina () and Sergio H. Lence ()
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Marie Lassalas: SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - INSTITUT AGRO Agrocampus Ouest - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement
Alejandro Plastina: ISU - Iowa State University
Sergio H. Lence: ISU - Iowa State University

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Abstract: The Common Agricultural Policy (CAP) must meet increasingly ambitious environmental objectives while ensuring food supply and farmers' income. We assess the impact of two instruments implemented in the CAP, agri-environmental schemes (AES) and organic subsidies, on farms' productivity and efficiency. We apply a stochastic frontier model anda difference-in-differences estimator to data on French farms specialized in crop production. Our results suggest that the adoption of AES and organic farming has no effect on farms' productivity and efficiency regarding their own production frontier. When compared to the entire sector, results show a negative causal effect of the adoption of organic practices on farms' efficiency between 2014 and 2020. Organic farms operate under a lower production frontier than conventional and AES farms regarding the metafrontier.

Keywords: Agri-environmental schemes; Organic certification; Production function; Productivity analysis; Stochastic frontier analysis; Technical efficiency; Mesures agro-environnementales et climatiques; Certification agriculture biologique; Fonction de production; Analyse de productivité; Analyse de frontière stochastique; Efficacité technique (search for similar items in EconPapers)
Date: 2025-02-20
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Published in Revue Economique, 2025, 75 (5), pp.945-974

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05017786

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