Technical efficiency of organic milk-farms in Germany - the role of subsidies and of regional factors Report as inadecuate




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This paper investigates the efficiency of organic milk farms in Germany basedon data from 1994/95 to 2005/06. Five inputs and one output are analyzed bymeans of a stochastic frontier production function, allowing for heteroscedasticityand technical effects. The selection of determinants of technical efficiencyincludes 5 groups of indicators. The analysis is focused on the impacts of farmsupport of organic farms and of regional factors, that can influence technicalefficiency. The results show, that the agri-environmental payments show a negativeeffect on efficiency. Farms, which receive investment aid, show lowerefficiency scores. Finally, the implication for agricultural policy are discussed.

Keywords: Efficiency Analysis ; Organic Farming ; Agglomerations Effects ; Subsidies

Subject(s): Agricultural and Food Policy

Production Economics

Productivity Analysis

Issue Date: 2009-08

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/51301 Page range: 1-15

Total Pages: 15

JEL Codes: Q12; Q18; D24

Series Statement: Contributed Paper

638

Record appears in: International Association of Agricultural Economists (IAAE) > 2009 Conference, August 16-22, 2009, Beijing, China





Author: Lakner, Sebastian

Source: http://ageconsearch.umn.edu/record/51301?ln=en



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