Economic and Comparative Analysis of Organic Farming

Analysis of Organic Farming

Organic farming is a type of farming method, which is a new system of agriculture that repairs, maintains, and helps to improve the ecological balance compared to conventional farming.

Well, organic farming is very well known for its environmental sustainability. And also it is economically sustainable. Various researches have found one common thing, that organic farming is way more better and profitable compared to conventional farming methods.

Prices of Organic products are also a reason that makes farmers to switch towards organic farming production. Also, check out types and methods of organic farming. Let’s continue with the analysis of organic farming

Ecologically intensive farming systems should reliably produce adequate yields of high-quality food. They should also enhance the environment, be profitable, and promote social wellbeing.

Many studies address the mean effects of ecologically intensive farms on sustainability, but few have considered variability. Organic farms had lower variability in abundance and richness but greater yield variability than conventional farms.

comparative swot analysis of organic farming

Cost-effective alternative

Organic Farming is a cost-effective alternative to conventional farming, farmers can easily switch to organic farming. It was also shown in an economic analysis commissioned by the Flemish Government and was carried out by Louis Bolk Insitute and the Flemish Institute for Agricultural and Fisheries Research ILVO.

Government subsidies for organic farming

Despite all these challenges, organic farming is one of the most promising techniques for creating the agricultural and horticultural production more sustainable and profitable.

Government subsidy programs help farmers easily adopt and practice organic farming, by analyzing insights into the economic issues, that farmers face when they switch over to organic farming. Also, it helps to improve and fine-tune the present programs.

Visit here for more info about Government Subsidies for Organic Farming

Comparative analysis of organic farming and non-organic farming

From Past decades, there have been various economic studies that compare the economic performance of organic and non-organic farming systems.

Several criticisms were formulated questioning the validity of such comparisons, partly because of the inherent difference between the two systems (in terms of complexity, diversity, and objectives other than yield maximization), and partly due to the difficulty in excluding ’non-system determining factors that also have an influence on profitability.

Furthermore, the adequate selection of a reference group for comparisons has proved to be fundamental for relative profitability: which organic farms are put on the profit measuring scale by researchers with which conventional farms determine the outcome.

The list of profitability studies compiled in this paper involves more than 50 different cases, mostly from the U.S.A, where several universities started long-term experimental field studies in the eighties and from European countries.

Just over a dozen shorter-term studies have been collected from developing countries on high-value export crops.

Most studies have used a case-study approach selecting between five up to hundreds of farms for the collection of data on farm economics. (Comparative analysis Report was done by Author Noémi Nemes)

For more Information Related to Organic Farming, check our other posts. Want to Start your own Organic Farm?

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