WHAT MAKES ORGANIC FARMING WORTH IT? PRICE PREMIUMS, PUBLIC INCENTIVES, AND A SIMPLE MODEL OF FAMILY FARM TRANSITION

Joanna Georgios Alexopoulos; Marcelo Da Silva Bego; Ednaldo Michellon

Todos os Trabalhos

Trabalho

DOI

10.29327/9786527226680.1440992

Título do Trabalho

WHAT MAKES ORGANIC FARMING WORTH IT? PRICE PREMIUMS, PUBLIC INCENTIVES, AND A SIMPLE MODEL OF FAMILY FARM TRANSITION

Autores

Joanna Georgios Alexopoulos
Marcelo Da Silva Bego
Ednaldo Michellon

Modalidade

IRSA - Congresso Mundial de Sociologia Rural (01/10/2025 a 20/01/2026)

Área temática

IRSA 05 - Family Farming in Comparative Perspective

Data de Publicação

06/08/2026

País da Publicação

Brasil

Idioma da Publicação

pt-BR

Página do Trabalho

https://www.even3.com.br/anais/sober-irsa2026/1440992-what-makes-organic-farming-worth-it-price-premiums-public-incentives-and-a-simple-model-of-family-farm-transi

ISBN

978-65-272-2668-0

Palavras-Chave

agricultural policy, agroecological transition, subsidized credit, dynamic partial equilibrium.

Resumo

This paper develops a theoretical model to identify the economic conditions under which family farmers are willing to adopt organic production. The model derives the minimum price premium required for an organic producer to be indifferent between organic and conventional farming, considering productivity differentials, subsidized credit programs, and market interest rates. The results show a strong inverse relationship between organic productivity and the required price premium: when organic yields approach conventional levels, only a small premium is necessary, but as productivity declines, the premium increases rapidly and becomes prohibitive. The subsidized financing rate further affects viability, with higher credit costs raising the premium threshold, especially when productivity is already low. Additional simulations reveal how technological parameters, such as the returns-to-scale and macro-financial conditions, such as the market interest rate r, jointly shape the economic feasibility of organic adoption. Overall, the findings highlight that productivity constraints, financing conditions, and production technology critically influence the minimum price premium necessary for organic farming to become competitive. These results suggest that subsidized credit alone is unlikely to generate a broad transition to organic agriculture unless accompanied by productivity enhancing technologies and improved market access. The study contributes to ecological and agricultural economics by linking microeconomic adoption decisions to broader sustainability and rural development policies in Brazil.

Título do Evento: 16th World Congress of Rural Sociology and 64th Congress of the Brazilian Society of Rural Economics, Management and Sociology
Cidade do Evento: Porto Alegre
Título dos Anais do Evento: Anais do 64º Congresso da SOBER e XVI Congresso Mundial de Sociologia Rural (IRSA)
Nome da Editora: Even3
Meio de Divulgação: Meio Digital
DOI

Como citar

ALEXOPOULOS, Joanna Georgios; BEGO, Marcelo Da Silva; MICHELLON, Ednaldo. WHAT MAKES ORGANIC FARMING WORTH IT? PRICE PREMIUMS, PUBLIC INCENTIVES, AND A SIMPLE MODEL OF FAMILY FARM TRANSITION.. In: Anais do 64º Congresso da SOBER e XVI Congresso Mundial de Sociologia Rural (IRSA). Anais...Porto Alegre(RS) UFRGS, 2026. Disponível em: https//www.even3.com.br/anais/sober-irsa2026/1440992-WHAT-MAKES-ORGANIC-FARMING-WORTH-IT-PRICE-PREMIUMS-PUBLIC-INCENTIVES-AND-A-SIMPLE-MODEL-OF-FAMILY-FARM-TRANSI. Acesso em: 22/09/2026