Adoption and Abandonment of Organic Farming: An Emperical Investigation of the Irish Drystock Sector

Summary

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.