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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
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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
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

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