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Empirical Study on Costs and Incomes of Organic Farming

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  • Josep Maria Argiles Bosch

    (Universitat de Barcelona)

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.

Suggested Citation

  • Josep Maria Argiles Bosch, 2007. "Empirical Study on Costs and Incomes of Organic Farming," Working Papers in Economics 178, Universitat de Barcelona. Espai de Recerca en Economia.
  • Handle: RePEc:bar:bedcje:2007178
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    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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