Economic stability of Organic farming

        Many farmers are turning to organic farming as a strategy for economic stability and to make more profit. Several comparisons of actual grain farms such as rice, wheat, oats, corn in India and parts of the world. Organic farming is equal to or exceeds conventional farming in economic performance.

Conventional farming VS Organic farming
Conventional farming VS Organic farming

Organic farming is more costly than conventional farming?

Answer to this question:-

  • No, organic farming is not costly. In-fact Organic farming is Equal or sometimes even less expensive than the conventional one.  
  • Experts have also found, through multiple and complex analysis around the world and the results are surprisingly consistent.
  • From most of the survey report, organic farming appears to be a more efficient economic system. The parameters considered are both for generating a profit and reducing the sort of environmental impacts.

      Starting an organic farming operation is not without costs.  Conventional farming requires extra expenses. Which include organic certification costs and the farmers need to invest in a better land and special equipment.

      Nevertheless, organic farming doesn’t typically require the same high capital investments that our old conventional farming does.

      Organic farming has a big history. The factors increasing the expense of conventional farming are chemical fertilizers, pesticides, and genetically modified seed stock. If you take an organic farmer, you’ll avoid these costs from the beginning. They don’t need to take loans to start organic farming.

Role of organic farming in the rural economy

     Organic farming is a topic that raises considerable passion, the high income of the farmers is only matched by the rise in market value and rural development. Rural development using organic farming is less scared and less complex.

The mixture of the two topics cannot but be highly contentious.Talking about rural areas in England in the last five years the number of organic farms has risen sharply, capturing a rapidly expanding share of the food market and benefiting from increased policy support.

        Similarly, the probability of rural development has been raised due to the farmers heading towards organic farming and it has afflicted many rural communities, as an economic increase due to the organic farming industry.It has cut through with the rise of food adulteration by the role of farmers within it, and disquiet about questions of food quality.

High-quality food from an enhanced farmed environment while at the same time stimulating rural development through enhanced employment.

        On a national scale, conversion to organic farming would have many benefits. Which would reduce federal costs for supporting commodity prices, reduce depletion of fossil fuels, and reduce the social costs associated with erosion.

It not only with respect to the economy, but also improve fish and wildlife habitats, and ensure the productivity of the land for future generations, However, widespread conversion to organic farming would have an undesirable impact on the balance of trade.

Farmer’s point of view:-

  • Farmers who chosen organic farming in the past 20 years have shown steadily increasing interest in organic farming.
  • In this period farmers who adopted organic farming methods early were motivated. The reasons relating to the health and safety of their families, by idealistic convictions about soil and land stewardship, consumers, and livestock.
  • Thousands of conventional farmers have begun to search for ways to decrease input costs because more recently, as costs of chemicals and credit have increased and commodity prices have stagnated. 
  • “Low input farming” is the new, socially-acceptable term for organic farming, and economic survival is the motivation for many newcomers, This economic pragmatists the organic farming movement has increased a lot, it beneficial that they are moving in that direction.

Customer point of view:-

High Demand and Willingness to Pay for Organic Products. Organic Trade Association (OTA) reported that sales in the organic industry exceeded $50 billion in 2018. Many consumers are switching towards organic products, due to increased interest in health, as well as concern over the environment.

Research shows that organic consumers are willing to pay a higher price for safer, higher quality organic products. Organic farmer can target a large market.  Achieved by expanding it beyond the local farmers market or grocery store and also to the restaurants. 

Ecological Benefits:-

Eco-friendly production should never be confused with Organic production. Eco and organic are not the same thing. Organic farming is that farming which comes with ecological benefits, such as:

  • Water conservation and protection
  • Reduced use of toxins in the soil, such as diesel and fertilizer that may harm the earth or leach into water supplies
  • Improved and protected biodiversity
  • Decreased risk of global warming triggers
Growth in organic markets
Growth in organic markets over the years

Future of organic farming in Economy:-

      Environmental issues, current health and animal treatment concerns suggest the organic trend will continue, making it a niche that can withstand a poor economy.

      Future research on the economics of organic farming should be directed at horticultural crops, marketing, and the process of conversion from conventional to organic farming. 

Future macroeconomic research should describe the social benefits mentioned above which will enable decision-makers to compare organic farming with other policy options.

Conclusion:-

         I hope it is clear now, organic farming is equal or sometimes even less than the conventional farming with respect to the expenditure.  A big difference in the income generated by both of them. Organic farming is more profitable than conventional farming.