An Integrated Household Economics Approach to Decision-Making: Dairy System Choice Among Organic, Amish, Graziers and Conventional Farmers in Wisconsin

This dissertation develops an integrated household economics approach to understand dairy systems choice among organic, Amish, graziers and conventional farmers in Wisconsin. This approach is called oikonomia from the Greek word for economics which here consists of four key realms: economic, social, spiritual and ecological. This framework also recognizes limits to time, information, and abilities when attempting to live out one's oikonomia and thus maps out various bounded rationality possibilities. A bounded rationality approach is particularly appropriate for studying organic dairy given the systems based nature of organic and the many unknowns associated with it. State-wide surveys and sixty semi-structured interviews were conducted and coded on relevant themes. Qualitative analysis is presented in the form of narratives which highlight oikonomia and bounded rationality. Organic dairy seems to be a promising system given the high satisfaction levels amongst organic dairy farmers. Pasture based producers including the Amish are a focus of this study because they are particularly close to the organic system. There are many reasons why farmers go or don't go organic which can be related to their current context. For example, farmers who are closer to the system seem to be most concerned with economic and agronomic issues. More conventionally orientated producers may be hesitant to adopt organic systems because of a focus on production. In contrast, organic and intensive graziers are more orientated towards positive synergies in the systems based approaches. Perhaps the most revealing is that many farmers do not seem to be considering the organic option in a systematic way. Bounded rationality issues, such as anchoring, satisficing, and status quo bias, are especially relevant. Two settlements of Amish studied are a good example of the possible ways oikonomia and bounded rationality play out in decision making processes about adoption decisions. Organic and MIRG dairy are likely to play a significant role in the future of the agricultural landscape, and a broad household decision making framework that incorporates bounded rationality concerns should be helpful for guiding farmers and for those advising them on adoption decision making.