Economics and Productivity of Organic versus Non-organic Dairy Farms in the United States

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Technical and scale efficiencies are estimated for organic and non-organic dairy farms in the United States using an input distance function approach. A multinomial logit analysis is used to categorize the farms by technology. Large conventional farms outperformed smaller farms in most technology / organic / non-organic categories. There was high variability in net returns among the organics so that they did not differ significantly from the large conventional farms. The largest conventional non-organic operations and conventional organic operations tended to have the higher technical efficiencies.

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http://hdl.handle.net/123456789/552298

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https://ageconsearch.umn.edu/record/44415/files/020.pdf

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University of Minnesota