AgEcon Search

AgEcon Search >
       Agricultural and Applied Economics Association (formerly the American Agricultural Economics Association) >
          2012 Annual Meeting, August 12-14, 2012, Seattle, Washington >

Please use this identifier to cite or link to this item: http://purl.umn.edu/123835

Title: The Structure and Profitability of Organic Field Crop Production: The Case of Wheat
Authors: McBride, William D.
Greene, Catherine R.
Ali, Mir B.
Foreman, Linda F.
Authors (Email): McBride, William D. (wmcbride@ers.usda.gov)
Keywords: wheat
organic
production costs
profitability
Issue Date: 2012
Abstract: Results from long-term experimental trials suggest that similar yields and lower costs are possible from organic compared with conventional field crop production, but there is little information about the relative costs and returns on commercial farms. This study examines the structure and profitability of commercial wheat production using a nationwide survey of wheat producers for 2009 that includes a targeted sample of organic growers. Treatment-effect models were specified to isolate the impact of choosing the organic approach on various levels of wheat production costs. Average organic wheat yields were much lower than for conventional wheat, but per acre operating plus capital costs were also lower. Estimated operating costs per bushel for organic wheat were lower than for conventional wheat, but operating plus capital costs and total economic costs were about $2 to $4 per bushel higher. The average organic price premium in 2009 was $3.79 per bushel, enough to cover the difference in operating plus capital costs of organic versus conventional wheat production, but was short of the difference in total economic costs
URI: http://purl.umn.edu/123835
Institution/Association: Agricultural and Applied Economics Association>2012 Annual Meeting, August 12-14, 2012, Seattle, Washington
Total Pages: 26
Collections:2012 Annual Meeting, August 12-14, 2012, Seattle, Washington

Files in This Item:

File Description SizeFormat
AAEA paper-organic wheat.pdf337KbPDFView/Open
Recommend this item

All items in AgEcon Search are protected by copyright.

 

 

Brought to you by the University of Minnesota Department of Applied Economics and the University of Minnesota Libraries with cooperation from the Agricultural and Applied Economics Association.

All papers are in Acrobat (.pdf) format. Get Adobe Reader

Contact Us

Powered by: