Hostname: page-component-cb9f654ff-mnl9s Total loading time: 0 Render date: 2025-08-25T16:40:04.222Z Has data issue: false hasContentIssue false
  • English
  • Français

Assessing the Technical and Allocative Efficiency of U.S. Organic Producers

Published online by Cambridge University Press:  26 January 2015

Timothy A. Park  and
Luanne Lohr
Timothy A. Park
Affiliation:
Food Marketing Branch, Economic Research Service, USDA, Washington, DC
Luanne Lohr
Affiliation:
Food and Specialty Crops Branch, Economic Research Service, USDA, Washington, DC
Get access Rights & Permissions [Opens in a new window]

Abstract

We develop measures of technical and allocative efficiency of producers in marketing certified organic products. A stochastic output distance frontier and the associated revenue share equations are estimated using comprehensive U.S. data on certified organic producers. Farm-level measures of technical efficiency are calculated and factors that enhance performance are identified. Factors that systematically influence allocative efficiency are assessed. The revenue mix of organic producers is systematically inefficient as both male and female producers rely too heavily on revenue from organic markets relative to conventional outlets.

Keywords

organic farmingstochastic frontiertechnical and allocative efficiencyD21C31Q01

Information

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 42 , Issue 2 , May 2010 , pp. 247 - 259
Copyright
Copyright © Southern Agricultural Economics Association 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

References

Comer, S., Ekanem, E., Muhammad, S., S.R Singh, and Tegegne, F. “Sustainable and Conventional Farmers: A Comparison of Socio-economic Characteristics, Attitudes, and Beliefs.” Journal of Sustainable Agriculture 15(1999):29–45.CrossRefGoogle Scholar
Cuesta, R.A., and Zofio, J.L. “Hyperbolic Efficiency and Parametric Distance Functions: With Application to Spanish Savings Banks.” Journal of Productivity Analysis 24(2005):31–48.CrossRefGoogle Scholar
Dimitri, C, and Greene, C. “Recent Growth Patterns in the U.S. Organic Food Market.” Organic Agriculture in the U.S.A. Wellson, J., ed. New York: Nova Science Publishers, 2007.Google Scholar
Fare, R., and Primont, D.Multi-output Production and Duality: Theory and Applications. Boston: Kluwer Academic Press, 1995.CrossRefGoogle Scholar
Grosskopf, S., Hayes, K.J., Taylor, L.L., and Weber, W.L. “Budget-Constrained Frontier Measures of Fiscal Equality and Efficiency in Schooling.” The Review of Economics and Statistics 79(1997):116–24.CrossRefGoogle Scholar
Jaenicke, E.C., and Drinkwater, L.E. “Sources of Productivity Growth during the Transition to Alternative Cropping Systems.” Agricultural and Resource Economics Review 28(1999):169-81.Google Scholar
Kalirajan, K.P., and Shand, R.T. “Technology and Farm Performance: Paths of Productive Efficiencies over Time.” Agricultural Economics 24(2001):297–306.CrossRefGoogle Scholar
Kroma, M.M., and Flora, C. Butler “An Assessment of SARE-Funded Farmer Research on Sustainable Agriculture in the North Central U.S.” American Joural of Alternative Agriculture. 16(2001):73–80.CrossRefGoogle Scholar
Kumbhakar, S., and Loveli, C.A.K.Stochastic Frontier Analysis. New York: Cambridge University Press, 2000.CrossRefGoogle Scholar
Kurkalova, L.A., and Carriquiry, A. “Input- and Output-Oriented Technical Efficiency of Ukrainian Collective Farms, 1989-92.” Journal of Productivity Analysis 20(2003):191–211.CrossRefGoogle Scholar
Lazear, E.P. “Incentives in Basic Research.” Journal of Labor Economics 15(1997):S167-97.CrossRefGoogle Scholar
Lohr, L., and Park, T.A. “Choice of Insect Management Portfolios by Organic Farmers: Lessons and Comparative Analysis.” Ecological Economics 43(2002):87–99.CrossRefGoogle Scholar
Morrison Paul, C.J., and Nehring, R. “Product Diversification, Production Systems, and Economic Performance in U.S. Agricultural Production.” Journal of Econometrics 126(2005):525–48.CrossRefGoogle Scholar
Morrison Paul, C.J., Johnston, W.E., and Frengley, G.A.G. “Efficiency in New Zealand Sheep and Beef Farming: The Impacts of Regulatory Reform.” The Review of Economics and Statistics 82(2000):325–37.CrossRefGoogle Scholar
New York Times. Wal-Mart Eyes Organic Foods. May 12, 2006.Google Scholar
Padel, S. “Conversion to Organic Farming: An Overview.” The Economics of Organic Farming. Lampkin, N.H., and Padel, S., eds. University of Wales, Aberystwyth, U.K.:, CAB International, 1994.Google Scholar
Progressive Grocer. The Central Question. 81(2002):14–16.Google Scholar
Progressive Grocer. “Standard Bearers: Grocers, Producers, and Especially Consumers are All Reaping the Reward of More Consistent Organic Produce.” 83(2004):99–103.Google Scholar
Rodriguez-Alvarez, A., Fern, V.ández-Blanco, and Loveli, C.A.K. “Allocative Inefficiency and its Cost: The Case of Spanish Public Hospitals.” International Journal of Production Economics 92(2004):99–111.CrossRefGoogle Scholar
Stephenson, G.Direct Marketing Channels & Strategy for Organic Products, extension. Internet site: http://www.extension.org/article/18381. Accessed March 18, 2010.Google Scholar
Tzouvelekas, V., Pantzios, C., and Fotopoulos, C. “Technical Efficiency of Alternative Farming Systems: The Case of Greek Organic and Conventional Olive-growing Farms.” Food Policy 26,6(2001):549–69.CrossRefGoogle Scholar
Walz, E.Final Results of the Third Biennial National Organic Farmers' Survey. Santa Cruz, CA: Organic Farming Research Foundation. Internet site: http://ofrf.org/publications/pubs/3rdsurvey_results.pdf. Accessed March 18, 2010.Google Scholar
Walz, E.Final Results of the Fourth National Organic Farmers' Survey. Santa Cruz, CA: Organic Farming Research Foundation. Internet site: http://ofrf.org/publications/pubs/4thsurvey_results.pdf. Accessed March 18, 2010.Google Scholar