Farm-specific factors affecting the choice between conventional and organic dairy farming

Organic dairy farming in the Netherlands is a growing sector. This paper investigates the impact of a number of economic and farm-specific variables on the choice between conventional and organic farming. Based on expected utility maximization, a theoretical framework is developed that explicitly accounts for the impact of non-economic variables like age and education level. The model is estimated with an unbalanced panel of Dutch dairy farms using a probit model