A Comparative Analysis of Organic and Conventional Farming trough the Italian FADN

Summary

This paper presents some results from a wider research on economic and environmental sustainability of organic farming. It aims to compare organic and conventional farming in order to identify some of the main differences between those groups of farms that participated in the official Farm Accountancy Data Network (FADN)-2003. The study is organized in two sections. The first part, after a brief literature review of the most recent statistical methodologies applied to identify the two similar groups of farms, presents some key economic variables (production, costs and revenues) and the most widely-used structural, economic and balance sheet indexes.
The second part describes findings from a case study on the Italian fruit-growing sector.
A non-parametric input-oriented frontier analysis (Data Envelopment Analysis, DEA)was used to evaluate which technique makes better use of their disposable productive inputs. Findings show that organic farmers can (partially) overcome the productivity gap (with respect to conventional ones) by more efficient use of their inputs (with respect to their own frontier).