Income from Organic and Conventional Farming Systems

  • Mrinila Singh
  • Keshav Lall Maharjan
Chapter

Abstract

This chapter assesses farm income (total farm valuation) and gross farm cash income (income from selling crops in the market) generated among organic and conventional farmers and analyzes factors impacting them taking into consideration the existence of premium market. Data from 285 respondents from Chitwan District of Nepal, selected using stratified sampling method, were analyzed using bivariate probit and ordinary least square model. Among other socioeconomic variables, this chapter finds that income from organic farming is lower because production per hectare, commercialization rate, and price at which the crops are sold per unit is higher for conventional farming, and access to premium market for organic products is very limited. Linkage with local organic market is necessary, while training, increasing farm size, access to credit, market information, and diversified crops equally play important role to improve income from farming.

Keywords

Farm income Farm cash income Premium price Bivariate probit model Ordinary least square model 

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Copyright information

© Springer Nature Singapore Pte Ltd. 2017

Authors and Affiliations

  • Mrinila Singh
    • 1
  • Keshav Lall Maharjan
    • 1
  1. 1.Graduate School for International Development and CooperationHiroshima UniversityHigashi-HiroshimaJapan

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