Determinants of the Farmers’ Conversion to Organic and Biodynamic Agriculture
No 4/2014, December
Abstract
The aim is to assess selected determinants which influence the conversion of the Czech farmers from conventional to organic or biodynamic agriculture. We assess farm’s efficiency (calculated by SFA), whether farm obtains AEM or LFA payments, if the farmer is “young” and the holding is a micro firm, and region. A random effects logistic regression model was estimated on the panel of Czech farms in 2005–2012.The results showed that efficiency of the farm is not a significant driver of conversion. On the other hand, the odds that the farm will change land management are significantly higher if it obtains subsidies. Also when the farm has < 10 employees and the farmer is > 40 years, the odds that it will switch are higher. If the farm is located Olomoucký region or Vysočina the odds for conversion are lower.The research is financed from IGA the grant No. 11110/1312/3160 of FEM, CULS.
Keywords
Organic and biodynamic agriculture, stochastic frontier analysis, random effects model.