Differences in efficiency and productivity between conventional and organic farms : the case of hungarian cereal oilseed and protein (cop) crop producing farms (2010-2015)

Baráth, Lajos and Bakucs, Lajos Zoltán and Nagy, Zsuzsanna and Fertő, Imre (2022) Differences in efficiency and productivity between conventional and organic farms : the case of hungarian cereal oilseed and protein (cop) crop producing farms (2010-2015). In: 13th International Conference of J. Selye University : Economics Section : Conference Proceedings. J. Selye University, Komárno, Slovakia, pp. 31-39. ISBN 9788081224119

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Abstract

The aim of this paper is to compare technical efficiency (TE) and total factor productivity (TFP) of Hungarian organic and conventional Cereals, Oilseed and Protein (COP) crop producing farms. We model production with a random parameter stochastic production frontier model, which allow us to consider technological differences among farms. Based on the estimated parameter of the model we construct Törnquist-Theil TFP index. We compare TE and TFP between the analysed groups using statistical tests, then in order to account for selection bias we use matching method to compare these performance indicators. Results show that both TE and TFP scores of organic farms are smaller com-pared to conventional farms, but the difference is statistically not significant.

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