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Impact of diversification on technical efficiency of organic farming in Switzerland, Austria and Southern Germany

Sebastian Lakner, Stefan Kirchweger, Daniel Hoop, Bernhard Brümmer and Jochen Kantelhardt

No 1508, DARE Discussion Papers from Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE)

Abstract: The paper investigates the impact of subsidies and of para-agriculture on the technical efficiency of organic farms in Switzerland, Austria and Southern Germany. The data-set consists of bookkeeping data with 1,704 observations in the years 2003 to 2005. Technical efficiency is modelled using a stochastic distance-frontier model combined with a Metafrontier-model. The results show almost no efficiency differences among the farms in the three countries. Para-agriculture shows a strong impact on farm's efficiency and output in Austria and Switzerland, whereas in Germany the effect is rather small. The study confirms that agricultural subsidies have a direct impact on farm's efficiency.

Keywords: Technical Efficiency; Organic Farming; Grassland Farming; Para-Agriculture (search for similar items in EconPapers)
JEL-codes: Q12 Q18 D24 C54 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-agr and nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:daredp:1508

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