Abstract
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 language | English (US) |
|---|---|
| Pages (from-to) | 80-106 |
| Number of pages | 27 |
| Journal | Land Economics |
| Volume | 97 |
| Issue number | 1 |
| DOIs | |
| State | Published - Feb 2021 |
ASJC Scopus subject areas
- Environmental Science (miscellaneous)
- Economics and Econometrics