Premium
Determinants of Premiums Received by Organic Field Crop Producers
Author(s) -
Heiman Ross D.,
Peterson Hikaru Hanawa
Publication year - 2008
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1111/j.1467-9353.2008.00443.x
Subject(s) - quarter (canadian coin) , organic farming , agricultural economics , agricultural science , crop , sample (material) , economics , business , agronomy , environmental science , agriculture , geography , biology , chemistry , archaeology , chromatography
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.