Description
The document analyzes numerous studies comparing the economic performance of organic and conventional farming systems. It highlights that profitability depends on various factors including crop choice, environmental conditions, market demand, and government support. The availability of price premiums is often crucial for organic systems’ economic success.
Findings
Most studies show organic farming is more profitable, even with lower yields in developed countries
Reduced production costs and price premiums often compensate for lower organic yields
Profitability varies by region, crop type, and farm management practices.
Stats
In Europe, organic farms achieved profits between 100-130% of conventional farms
Price premiums accounted for 40-75% of profits for organic arable farms in Germany and Britain
In some U.S. studies, organic systems were 143% more profitable than conventional without premiums
In Switzerland, organic profits were on average 10% higher than conventional farms
In Germany, organic farms had on average 60% higher profit than the conventional reference group
In Italy, organic farms had 20-24% higher returns per hectare.