Determinants of premiums received by organic field crop producers

Ross D. Heiman, Hikaru Hanawa Peterson

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

According to shipment records of an organic marketing cooperative from 2003 to 2005, organic corn and soybean premiums exceeded 100% of the conventional prices, while organic premiums for wheat varieties averaged 85%. For all organic crops included in this study, except soybeans, the premiums varied by idiosyncratic differences in shipment characteristics. On average, crops contracted during the quarters following harvest received smaller premiums than those contracted during the harvest quarter, and longer contract horizons were associated with higher premiums. The findings support the growing demands for organic field crops over the sample period, particularly for corn and soybeans.

Original languageEnglish (US)
Pages (from-to)729-749
Number of pages21
JournalReview of Agricultural Economics
Volume30
Issue number4
DOIs
StatePublished - Dec 17 2008

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