Factors Influencing Partial and Complete Adoption of Organic Farming Practices in Saskatchewan, Canada
M. Khaledi1, S. Weseen2 , E. Sawyer3, S. Ferguson4 and R. Gray2
Using a sample of organic producers in Saskatchewan, Canada, this study uses a Tobit model to identify the factors that discourage or encourage the complete adoption of organic farming and to assess why farmers differ in the share of total cultivated crop area they allocate to organic practices. In particular, the study evaluates the effect of transaction costs on the decision to convert partially or completely from conventional to organic practices.
The results highlight the importance of lowering certain transaction costs to encourage the adoption of organic management practices. Significant transaction costs were found to include infrastructure and services, satisfaction with marketer performance, marketing problems, and Internet use. Results suggest that farmers with smaller land holdings are more inclined to undertake complete adoption. While the education levels of organic farmers show no significant effect on the probability of adoption, younger organic farmers allocate significantly less of their cultivated area to organic practices.
Canadian Journal of Agricultural Economics (2010) 58: 37-56
Author Locations and Affiliations
(1) Agricultural Economics Research Bureau, Novab Street, Hedabi Bldg 11F, P.O. Box 14155-6197, Tehran, Iran
(2) Department of Agricultural Economics, University of Saskatchewan, 51 Campus Drive, Saskatoon, SK, Canada S7N SA8
(3) 504-2036 W 10th Avenue, Vancouver, BC, Canada V6J 2B3
(4) Department of Economics, Stockholm University, Universitetsvägen 10A, Frescati, 106-91 Stockholm, Sweden
Posted June 2010