Farmland Rental Rates: Does Organic Certification Matter?

Kate Binzen Fuller, Joseph P. Janzen, B. Munkhnasan

Research output: Contribution to journalArticlepeer-review


We estimate U.S. organic farmers’ marginal willingness to pay to rent an acre of certified organic land relative to conventional farmland. Using a selection-on-observables design and farm-level data on farmland rental rates, organic status, and many conditioning variables, we address the role of profitability in mediating the effect of organic status. We find a 26% rental rate premium for organic farmland not driven by higher profits on organic farms. This premium is a modest incentive for landowners but a barrier for tenants to convert to organic farming practices, which may explain limited growth in U.S. organic acreage.

Original languageEnglish (US)
Pages (from-to)80-106
Number of pages27
JournalLand Economics
Issue number1
StatePublished - Feb 2021

ASJC Scopus subject areas

  • Environmental Science (miscellaneous)
  • Economics and Econometrics


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