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European Review of Agricultural Economics Advance Access originally published online on December 19, 2005
European Review of Agricultural Economics 2006 33(1):31-48; doi:10.1093/erae/jbi034
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© Oxford University Press and Foundation for the European Review of Agricultural Economics 2005; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org

Comparing support for organic and conventional farming in the European Union using an adjusted Producer Support Estimate

Stephan Hubertus Gay

JRC-IPTS, European Commission, Seville, Spain

Frank Offermann

Federal Agricultural Research Centre (FAL), Braunschweig, Germany

Corresponding author: Stephan Hubertus Gay, Institute for Prospective Technological Studies, Joint Research Centre, European Commission, Edificio EXPO, Calle Inca Garcilaso s/n, 41092 Sevilla, Spain. E-mail: Hubertus.Gay{at}cec.eu.int

Received August 2004; final version received November 2005

This paper compares support for organic and conventional farming in 2001, using the methodology of the Producer Support Estimate (PSE). Although market price support for organic products is difficult to determine, our case study-based estimates indicate that the PSE for organic farming ranged between 41 and 44 per cent in the EU, compared with 35 per cent for conventional farming. However, the structure of support for the different commodities is similar between organic and conventional farming, although direct payments are generally higher for organic farming. No clear link between the level of support and the share of organic farming in Member States could be detected. An annual calculation of separate PSEs for both forms of farming could provide useful information about developments in support.

Keywords: Producer Support Estimate (PSE), organic farming, support, European Union (EU)


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