Technical efficiency of organic farming in the Czech Republic

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JEL classification

• Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
• Agricultural Policy; Food Policy

Keywords

Organic farming, panel data, stochastic frontier analysis, technical efficiency

Abstract

Organic agriculture is the fastest developing branch of the Czech agriculture production. Nevertheless, foreign researches evidence that it is not dealt with an efficient production technology. The mentioned research has not been realized in the Czech Republic yet. Therefore, the aim of the paper is an evaluation of technical efficiency of Czech organic farms and determination of main factors which affect the technical efficiency of organic farmers. The methodological tool for achievement of the aim is the analysis of frontier production function and simultaneous estimation of technical inefficiency. The results of research verified the hypothesis of lower efficiency of organic farming, based on foreign papers, but withal they declared more problematic situation of Czech organic farms.