Next Article in Journal
Pre- and Post-Harvest Practices of Urban Leafy Green Vegetable Farmers in Accra, Ghana and Their Association with Microbial Quality of Vegetables Produced
Previous Article in Journal
Methods for Management of Soilborne Diseases in Crop Production
Open AccessArticle

What Makes an Organic Dairy Farm Profitable in the United States? Evidence from 10 Years of Farm Level Data in Vermont

Department of Community Development and Applied Economics, University of Vermont, Burlington, VT 05401, USA
*
Author to whom correspondence should be addressed.
Agriculture 2020, 10(1), 17; https://doi.org/10.3390/agriculture10010017
Received: 12 December 2019 / Revised: 6 January 2020 / Accepted: 9 January 2020 / Published: 14 January 2020
Many U.S. dairy farms, especially small farms, are struggling to stay in business due to difficult economic conditions. While switching to organic milk production has been identified as one way to improve farm profitability, there are very limited economic data available on organic dairy profitability and the key factors contributing to its variation among organic dairy farms. This study analyzes a 10-year longitudinal dataset of Vermont organic dairy farms (2006–2016), collected by the University of Vermont Extension, to identify key factors influencing farm profitability and quantify their impact on farm return on assets (ROA) through a multivariate fixed-effects regression model. Results suggest that significant factors for organic farm profitability measured by ROA include feeding management, farm management, farm size, milk price and input costs. Such findings may help many organic dairy farms identify potential areas for improving their profitability and conventional farms evaluate the potential financial benefits of switching to organic operation. View Full-Text
Keywords: organic dairy; farm profitability; agricultural finance; return on assets (ROA); Vermont organic dairy; farm profitability; agricultural finance; return on assets (ROA); Vermont
Show Figures

Figure 1

MDPI and ACS Style

Walsh, J.; Parsons, R.; Wang, Q.; Conner, D. What Makes an Organic Dairy Farm Profitable in the United States? Evidence from 10 Years of Farm Level Data in Vermont. Agriculture 2020, 10, 17.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop