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Article

Organic Farming Increases the Technical Efficiency of Olive Farms in Italy

1
Department of Law, Economics, Management and Quantitative Methods, University of Sannio, via Delle Puglie 82, 82100 Benevento, Campania, Italy
2
Bioversity International, Viale Tre Denari 472, 00054 Maccarese (Fiumicino), Rome, Italy
3
BAT Center—Interuniversity Center for Studies on Bioinspired Agro-Environmental Technology, University of Naples Federico II, Via Università, 100, 80055 Portici, Naples, Italy
*
Author to whom correspondence should be addressed.
Academic Editors: Sanzidur Rahman and Les Copeland
Agriculture 2021, 11(3), 209; https://doi.org/10.3390/agriculture11030209
Received: 17 December 2020 / Revised: 3 February 2021 / Accepted: 25 February 2021 / Published: 4 March 2021
(This article belongs to the Section Agricultural Economics, Policies and Rural Management)
While there is growing recognition of the positive role played by organic farming in the reduction of the negative externalities due to conventional agriculture, there is uncertainty about the effect of the latter on the economic performance of the farms. In this scenario, the present paper aims at investigating the effect of organic farming on technical efficiency in Italian olive farms. A cross-section dataset was analyzed through the stochastic frontier function, where the adoption of organic farming was explicitly modeled. Then, to obtain an unbiased estimate of the impact of organic farming on technical efficiency, a propensity score matching method was implemented. The findings reveal that organic farming increases technical efficiency in Italian olive farms by approximately 10%. The highest impact of organic farming is observed in small farms. As for the propensity to become organic, we found that the production and the direct sales of a higher quality of gross marketable output, as well as the intensity of labor and machines, increase the probability to adopt organic farming. Conversely, farm localization, the availability of family labor, and financial capital discourage conversion to the organic farming system. View Full-Text
Keywords: organic agriculture; stochastic frontier function; propensity score matching; FADN; olive farms organic agriculture; stochastic frontier function; propensity score matching; FADN; olive farms
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MDPI and ACS Style

Raimondo, M.; Caracciolo, F.; Nazzaro, C.; Marotta, G. Organic Farming Increases the Technical Efficiency of Olive Farms in Italy. Agriculture 2021, 11, 209. https://doi.org/10.3390/agriculture11030209

AMA Style

Raimondo M, Caracciolo F, Nazzaro C, Marotta G. Organic Farming Increases the Technical Efficiency of Olive Farms in Italy. Agriculture. 2021; 11(3):209. https://doi.org/10.3390/agriculture11030209

Chicago/Turabian Style

Raimondo, Maria, Francesco Caracciolo, Concetta Nazzaro, and Giuseppe Marotta. 2021. "Organic Farming Increases the Technical Efficiency of Olive Farms in Italy" Agriculture 11, no. 3: 209. https://doi.org/10.3390/agriculture11030209

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