TY  - CPAPER 
AB  - Results from long-term experimental trials suggest that similar yields
and lower costs are possible with organic compared to conventional
soybeans, but there is little information about the relative costs and
returns on commercial farms.  This study examines the profitability of
commercial soybean production using a nationwide survey of soybean
producers for 2006 that includes a targeted sample of organic growers.
Treatment-effect models are specified to isolate the impact of choosing
the organic approach on various levels of soybean production costs.
Organic soybean costs range from about $1 to $6 per bushel higher than
those for conventional soybeans due to both lower yields and higher
per-acre costs, while the average organic price premium in 2006 is more
than $9 per bushel.  High returns to organic production are attributed
to the significant price premiums paid for organic soybeans in 2006, and
these price premiums have remained high in 2007 and 2008.  However, much
higher conventional soybean prices and increased fuel prices may have
reduced the incentive for planting organic soybeans.
AU  - McBride, William D.
AU  - Greene, Catherine R.
DA  - 2008
DA  - 2008
DO  - 10.22004/ag.econ.6449
DO  - doi
ID  - 6449
KW  - Crop Production/Industries
L1  - https://ageconsearch.umn.edu/record/6449/files/465035.pdf
L2  - https://ageconsearch.umn.edu/record/6449/files/465035.pdf
L4  - https://ageconsearch.umn.edu/record/6449/files/465035.pdf
LA  - eng
LA  - English
LK  - https://ageconsearch.umn.edu/record/6449/files/465035.pdf
N2  - Results from long-term experimental trials suggest that similar yields
and lower costs are possible with organic compared to conventional
soybeans, but there is little information about the relative costs and
returns on commercial farms.  This study examines the profitability of
commercial soybean production using a nationwide survey of soybean
producers for 2006 that includes a targeted sample of organic growers.
Treatment-effect models are specified to isolate the impact of choosing
the organic approach on various levels of soybean production costs.
Organic soybean costs range from about $1 to $6 per bushel higher than
those for conventional soybeans due to both lower yields and higher
per-acre costs, while the average organic price premium in 2006 is more
than $9 per bushel.  High returns to organic production are attributed
to the significant price premiums paid for organic soybeans in 2006, and
these price premiums have remained high in 2007 and 2008.  However, much
higher conventional soybean prices and increased fuel prices may have
reduced the incentive for planting organic soybeans.
PY  - 2008
PY  - 2008
T1  - The Profitability of Organic Soybean Production
TI  - The Profitability of Organic Soybean Production
UR  - https://ageconsearch.umn.edu/record/6449/files/465035.pdf
Y1  - 2008
T2  - Selected Paper
T2  - 465035
ER  -