Organic cultivation and farmland prices: Does certification matter?

Arbeitspapier

This paper investigates price differentials between organically and conventionally farmed arable land. Organic commodities offer higher prices and environmental benefits such as improved soil constitution, where land buyers gauge these benefits against lower yields at higher risk, switching and higher production cost compared to conventional production. Combining land transaction and cover data from EU's Integrated Administrative Control System between 2005-2019, we test the hypothesis of positive valuation of organic cultivation, also for conventional use after sale. Based on a double robust approach, we find on average no effect but markups for conventional and markdowns for organic use post-sale.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: FORLand-Working Paper ; No. 28 (2023)

Classification and Topics

• Classification: Wirtschaft ; Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment ; Renewable Resources and Conservation: Land ; Valuation of Environmental Effects ; Real Estate Markets, Spatial Production Analysis, and Firm Location: General
• Subject: Organic agriculture ; farmland pricing ; Integrated Administrative Control System (IACS) ; ecosystem services ; matching

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Seifert, Stefan ; Hüttel, Silke ; Werwatz, Axel
• Event: Veröffentlichung
• (who): Humboldt-Universität zu Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets - Efficiency and Regulation"
• (where): Berlin
• (when): 2023

Further information

• DOI: doi:10.18452/26264
• Handle: http://hdl.handle.net/10419/273355
• URN: urn:nbn:de:kobv:11-110-18452/26938-3
• Last update: 10.03.2025, 11:42 AM CET