Author(s): Lajos BARATH – Zoltán Lajos BAKUCS – Zsuzsanna NAGY- Imre FERTŐ

Title: DIFFERENCES IN EFFICIENCY AND PRODUCTIVITY BE-TWEEN CONVENTIONAL AND ORGANIC FARMS: THE CASE OF HUNGARIAN CEREAL OILSEED AND PROTEIN (COP) CROP PRODUCING FARMS (2010-2015)

Source: E. Korcsmáros (ed.): 13th International Conference of J. Selye University. Economics Section. Conference Proceedings

ISBN: 978-80-8122-411-9

DOI: https://doi.org/10.36007/4119.2022.031

Publisher: J. Selye University, Komárno, Slovakia

PY, pages: 2021, 31-39

Published on-line: 2022

Language: en

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.

Keywords: efficiency, productivity, organic farms, conventional farms, Hungary, cereals, oilseed and protein producing

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