This article analyzes spatial dependence in the adoption of organic farming. A Bayesian spatial Durbin probit model is applied to survey data of almost 600 Irish drystock farmers. The findings reveal that farmers located in close proximity exhibit similar choice behavior. More specifically, communication and interactions among farmers influence adoption decisions as for example attitudes and social norms were identified to have spatial spillover effects. Overall, the findings from this study highlight that it is important to account for spatial dependence when explaining adoption decisions as this also influences policy recommendations.
There is a considerable literature about the adoption of organic farming. However, possible abandonment of organic farming has received scant attention. Thus, relatively little is known about the exit decisions of farmers. In addition, most studies are based on a static framework where it is not possible to account for changes in farmer decisions over time. This article attempts to fill this gap in the literature by investigating the determinants that affect both adoption and abandonment of organic drystock farming over time. The use of duration analysis allows for the consideration of cross-sectional and time-varying factors over the study period from 1981 to 2008. Using this dynamic econometric framework revealed a significant time effect on entry and exit decisions. Overall, the results highlight that where no attempt is made to account for exit decisions and time effects, important information about sustainable farmer decisions may not be taken into consideration.
Profitability and factors affecting grazing season length were econometrically analyzed using a representative sample of Irish dairy farms. The objective of this study was to explore what potential exists on Irish dairy farms to extend the grazing season and to quantify the possible economic benefits that result from lengthening the grazing season. Regression results indicate that location factors affect the length of the grazing season, but even when physical factors are controlled, farmer characteristics, such as education, also affect the grazing season length. The results of a panel data analysis show that significant cost reductions can be achieved by extending the grazing season. Overall, the findings indicate that lengthening the grazing season offers a cost-saving alternative on many Irish dairy farms, which could contribute to strengthening the competitiveness of the Irish dairy sector.
This article examines the effectiveness of a government funded extension programme. Farm‐level data are used to assess the economic impact of dairy discussion groups, a common participatory extension method. The evaluation focuses on whether discussion group participants have improved farm profits, which is estimated with an endogenous switching regression model. This method controls for self‐selection bias due to unobserved characteristics, such as the farmer’s ability, that may affect both participation and farm profitability. After controlling for this potential bias, we find that the economic returns to discussion group membership are positive, thus supporting government targets to enrol more farmers in discussion groups.
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