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Empirical Study on Costs and Incomes of Organic Farming

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  • Josep Maria Argiles Bosch

    (Universitat de Barcelona)

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    Abstract

    This paper conducts an empirical study on output, costs and incomes in organic farming with a sample of Spanish firms. Financial accounting data reveals that organic and partly or transitional to organic farming do not get significantly different output than intensive farming. Farms in transition to organic farming bear significantly higher costs and obtain significantly lower income than intensive farming. Costs were recalculated incorporating opportunity costs of family work. Organic and transitional farming displayed significantly higher costs and lower relative income. However, organic farming plays a social role generating more employment than intensive farming and avoiding environmental and health damages. The article recalls for the necessity for accounting to broaden its scope and contents. It should disclose social and environmental data, as well as transactions that are not marketed, registered or valued but yield social profits and costs.

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    Bibliographic Info

    Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 178.

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    Length: 18 pages
    Date of creation: 2007
    Date of revision:
    Handle: RePEc:bar:bedcje:2007178

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