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 2-3 km 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.