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Abstract
The article summarizes the literature on efficiency and productivity of organic
farming. A short overview on theories and models is provided. We can distinguish
between studies that concentrate of specific problems of the organic sector and
studies that aim to compare conventional and organic farming systems. Sample
selection is a major challenge for comparisons between organic and conventional
farms, since the organic farms have a different farm-structure and are often
represented by a relatively small number of observations. We find that conversion to
organic farming is influenced by inefficiency. In three of four studies, organic farms
have a lower productivity than conventional farms. Studies on environmental
efficiency document that organic farming show a higher degree of efficiency if
environmental variables (such as landscape elements and diversity in the croprotation)
are taken into account. The impact of subsidies on farm efficiency is often
found to be negative.