IDEAS home Printed from
   My bibliography  Save this article

Analysis of the economy of farms with ecological agriculture in the light of profitability and risks


  • Daniel Kopta

    () (University of South Bohemia in České Budějovice)

  • Jindřiška Kouřilová

    () (University of South Bohemia in České Budějovice)


This paper presents the results of the assessment of profitability and risks of agricultural holdings with the ecological agriculture. The first part deals with the rate of profitability. These results indicated improving economic situation for both ecological and organic agricultural holdings. The values for ecological holdings started to overreach the values for conventional farms approximately in 2003. Overall accrued revenue reached 8.2% for ecological and 4.3 for conventional farm during 5 years of investigation. In case of ecological farms, these values are approximately the same as the level of inflation so that they do not bring any revenue to the owner. In case of conventional farms, low profitability does not allow even a simple reproduction of assets. At the same time, the farming risk was analysed. The variability of the profit/loss was investigated together with the assessment of possibilities whether this variability may endanger the farm. The debt ratio and liquidity indicators were also taken into consideration within this analysis. The investigation revealed lower fluctuation of the profit/loss of ecological farms. The profitability of these farms is more stable so that these farms are not endangered by economic fluctuation as much. This development may be assessed as positive, especially in connection to the development of the indicator of interest coverage; when ecological farms are able to cover cost interests with higher reserves. The stabilization of revenues of ecological farms is caused both by higher volume of eligible subsidies (as a safe source of income of a farm) and by lower fluctuation of operation incomes itself caused by higher share of less risky animal production in the structure of production. This paper is a part of MSM 6007665806 project.

Suggested Citation

  • Daniel Kopta & Jindřiška Kouřilová, 2008. "Analysis of the economy of farms with ecological agriculture in the light of profitability and risks," Acta Universitatis Bohemiae Meridionales, University of South Bohemia in Ceske Budejovice, vol. 11(2), pages 33-40.
  • Handle: RePEc:boh:actaub:v:11:y:2008:i:2:p:33-40

    Download full text from publisher

    File URL:
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:boh:actaub:v:11:y:2008:i:2:p:33-40. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tereza Š ástková). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.