Organic farming: implications for costs of production and provisioning of environmental services

Summary

The report is part of the project 'Farm Accountancy Cost Estimation and Policy Analysis of European Agriculture' (FACEPA).
The overall aim of this report is to contrast organic and conventional forms of commodity production in terms of costs and environmental performance. Specific objectives are to apply the General Cost of Production Model (GECOM) developed in the FACEPA project to organic farms, to compare GECOM results for organic farming to data from other national studies as part of a (quasi-)validation, to discuss production costs in organic farming in the light of the structure of the organic farming sector and the respective policy environment in selected EU Member States, and to explore the potential of FADN systems for deriving environmental impacts at farm level, calculating and comparing selected indicators for organic farms.
The report is structured as follows: First, a short overview is given of the structure of the organic farming sector and the respective policy environment in selected study countries (Chapter 2). Chapter 3 provides a description and discussion of production costs in organic farming collected from various other national sources, paying specific attention to the impact of different methodological approaches used in the available studies. In Chapter 4, the GECOM estimations for fully organic farms of EU FADN are illustrated and compared to other national production cost data to provide a quasi-validation of the GECOM estimates. Chapter 5 presents a comparison of the GECOM estimates for production costs in organic and conventional farming. The final Chapter 6 then illustrates the potential of identifying environmental impacts based on FADN data.