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Economic Feasibility of Organic Farms and Risk Management Strategies


  • Medina, Felipe
  • Iglesias, Ana


Organic farmers must face different risks than conventional farmers Due to the special features of management of their productive system, and due to the specific characteristics of their cultivations. This study analyses the specific risks that organic farmers must manage as well as the different strategies that there are developing nowadays. Even if the Spanish farmers rely on the insurance system to manage their risks, today organic farmers do not have specific insurance products to manage them. The methodology and results presented in this study include a risk analysis carried out by evaluating statistical, probabilistic, and stochastic properties of the organic production data. We evaluate and discuss the aspects of our study that relate to other international studies. Productions considered in this research are olives, vineyard and cereals. Specific risk management strategies developed by organic farmers – in contrast with conventional farmers – have been identified and quantified, showing the different attitudes based on their risk perception and the potential vulnerability of their farms. Agricultural insurance tool for organic farmers in Spain has been studied and analyzed as an important risk management.

Suggested Citation

  • Medina, Felipe & Iglesias, Ana, 2008. "Economic Feasibility of Organic Farms and Risk Management Strategies," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44065, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae08:44065

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    References listed on IDEAS

    1. Richard E. Just & Quinn Weninger, 1999. "Are Crop Yields Normally Distributed?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(2), pages 287-304.
    2. Lien, Gudbrand D. & Hardaker, J. Brian & Flaten, Ola, 2006. "Risk and economic sustainability of crop farming systems," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139879, Australian Agricultural and Resource Economics Society.
    3. Joseph Atwood & Saleem Shaik & Myles Watts, 2003. "Are Crop Yields Normally Distributed? A Reexamination," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 888-901.
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    More about this item


    Risk management; organic farming; stochastic simulation; risk strategies and agricultural insurance; Farm Management; Risk and Uncertainty;

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