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Agricultural and Food Economics

Table 5 ATE estimates of organic production on the economic performance indicators for the years 2020 (“average” season), 2014 (“bad” season), and 2018 (“good” season)

From: Conventional versus organic olive farming: which has a better economic performance?

Indicators

2020a

2014b

2018c

ATE

p-value

ATE

p-value

ATE

p-value

Productivity

Land productivity (€/ha)

− 228

0.008**

− 158

0.197

− 199

0.028*

Labor productivity (€/AWU)

− 5259

0.102

3449

0.201

− 8632

0.044*

Capital productivity (%)

− 0.76

0.475

− 4.90

0.005**

− 2.52

0.041*

Profitability

1. Sales revenue (€/ha)

− 228

0.008**

− 158

0.197

− 199

0.028*

2. CAP subsidies (€/ha)

82.9

0.018*

12.0

0.763

170.5

0.000**

 CAP 1st pillar subsidies (€/ha)

− 66.0

0.024*

− 141

0.000***

− 73.2

0.009**

 CAP 2nd pillar subsidies (€/ha)

145

0.000***

118

0.000***

232

0.000***

A. Total revenue (€/ha)

− 114

0.198

− 115

0.374

− 48.3

0.633

3. Intermediate consumption (€/ha)

33.4

0.227

− 41.9

0.084

− 22.1

0.383

B. Gross margin (€/ha)

− 156

0.056

− 120

0.355

7.07

0.940

4. Wages paid (€/ha)

− 54.3

0.022*

− 20.8

0.262

− 17.5

0.334

5. Rent paid (€/ha)

15.8

0.043*

− 22.0

0.003**

− 9.81

0.226

6. Depreciation (€/ha)

− 13.7

0.396

− 10.4

0.455

− 14.9

0.364

C. EBIT (€/ha)

− 99.4

0.240

− 12.1

0.926

58.6

0.516

D. EBT (€/ha)

− 99.3

0.240

− 5.59

0.966

60.1

0.504

E. Net income (€/ha)

− 104

0.218

8.87

0.946

56.9

0.528

ROA (%)

0.39

0.646

− 2.43

0.064

1.39

0.138

ROE (%)

0.32

0.716

− 1.30

0.326

1.33

0.157

Viability

      

Total Opportunity Costs (TOC) (€/ha)

− 11.8

0.714

− 154

0.000***

− 5.42

0.844

Economic profit (€/ha)

− 120

0.175

112

0.405

30.5

0.744

Long-term econ. viabilityd

− 0.304

0.048*

− 0.077

0.733

− 0.086

0.594

Short-term econ. viabilityd

2.10

0.367

− 0.71

0.283

− 3.37

0.128

Resiliencee

CV of net income (%)

− 10.9

0.072

    

Net income resistance (%)

24.9

0.607

    

Shannon diversity index (SDI) meand

0.025

0.315

    

Specific costs adjustment flexibility (%)

63.3

0.000***

    

Labor input adjustment flexibility (%)

− 1.89

0.450

    

SDI adjustment flexibility (%)

0.99

0.016*

    

Independence

Revenue dependency (%)

9.00

0.000***

3.52

0.053

8.22

0.000***

Net income dependency (%)

57.9

0.544

348

0.179

17.7

0.090

  1. ***, **, and * denote statistical significance at 0.1%, 1%, 5%, respectively
  2. a Year 2020: Matching 246 conventional farms with 130 organic farms
  3. b Year 2014: Matching 203 conventional farms with 113 organic farms
  4. c Year 2018: Matching 210 conventional farms with 113 organic farms
  5. d Dimensionless variable
  6. e Panel sample: Matching 128 conventional farms with 84 organic farms
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