Abstract
We employed the propensity score matching and estimated the causal effect of being certified
organic crop producers on farm household income and its various components in the United
States. Contrary to the standard assumption in economic analysis, certified organic farmers do
not earn significantly higher household income than conventional farmers. Certified organic crop
producers earn higher revenue but they incur higher production expenses. In particular, certified
organic producers spend significantly more on labor expenses, insurance payments, and
marketing charges than conventional farmers. The results suggest that early adopters of organic
farmers have done so for non pecuniary reasons and the lack of economic incentives can be an
important barrier to conversion to organic farming in the United States...