AgriFood-WP,
Lund University, AgriFood Economics Centre

Abstract: This study uses Swedish data to examine if the availability of nearby manure is an important determinant of organic uptake. We calculate farms’ N balance of manure (animals production of N relative to N use in crop and forage production) and use coordinates to aggregate neighbors’ N balances. In plain districts, we find that a standard deviation change in the within-1km N balance of manure increases the probability of being organic with 11%. A smaller impact is found for other districts and for the within-2-3km N balance of manure. Thus, our findings suggest that a further expansion of organic farming relies, partly, on an expansion of livestock production. Paradoxically, however, to alleviate the environmental impact of agriculture − the goal of organic production − livestock production is, preferably, reduced.

Keywords: organic farming; manure; N availability; regional analysis

JEL-codes: N50

22 pages, February 18, 2021

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