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1283. Conventional or organic cattle farming? Trade-offs and optimal gross margin analysis

Invited abstract in session TA-12: OR in Livestock farming, stream OR in Agriculture and Forestry .

Tuesday, 8:30-10:00
Room: 13 (building: 116)

Authors (first author is the speaker)

1.	Mario Guajardo
	Business and Management Science, NHH Norwegian School of Economics
2.	Rasmus Bang
	SNF - Centre for Applied Research at NHH
3.	Leif-Jarle Asheim
	Norwegian Institute of Bioeconomy Research
4.	Ola Flaten
	Norwegian Institute of Bioeconomy Research
5.	Bjørn Gunnar Hansen
	Tine SA Research and Development Department
6.	Jon Kristian Sommerseth
	Tine SA Research and Development Department

Abstract

Interest for organic products and concerns regarding sustainable practices raise an important question for farmers: should they run their farms conventionally or organically? We address this question by means of a mathematical programming model tailored to Norwegian cattle farms. The model aims to optimize gross margin, subject to government support stipulations outlined in the Norwegian agricultural agreement and a number of other features. A computational study allows us to assess the economic performance of different farm settings and the trade-offs between crop yield, livestock capacity, organic premiums, and government payments. We derive some insights into the conditions when organic outperforms conventional systems, and vice versa. These hold significant relevance not only to farmers, but also to farm advisors and policy makers.

Keywords

• OR in Agriculture

Status: accepted

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