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The use of gross and net margins in the economic analysis of organic farms

Firth, Chris (2002) The use of gross and net margins in the economic analysis of organic farms. In: Powell, Jane and et al. (Eds.) Proceedings of the UK Organic Research 2002 Conference, Organic Centre Wales, Institute of Rural Studies, University of Wales Aberystwyth, pp. 285-288.

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This paper was presented at the UK organic research 2002 of the Colloquium of Organic Researchers (COR).
In order to assess the technical and economic efficiency of conventional farm businesses a variety of management techniques have been developed. These include gross and net margin analysis and full cost accounting. This paper reviews their effectiveness in organic farming systems and finds that all of the techniques can be useful in helping to assess the economic efficiency of individual enterprises within an organic farming business, although they have their limitations. Organic systems require the integration of a number of usually complementary enterprises and therefore gross and net margins for particular enterprises taken out of the rotational or whole farm context can be misleading. Consequently it is important that any economic investigation of an organic system also includes whole farm economic analysis.

EPrint Type:Conference paper, poster, etc.
Type of presentation:Paper
Keywords:Colloquium of Organic Researchers; COR; gross margins, net margins, farm business analysis, economic efficiency, management accounts
Subjects: Knowledge management
Farming Systems > Farm economics
Research affiliation: UK > Garden Organic (HDRA)
UK > Colloquium of Organic Researchers (COR) > COR 2002
Deposited By: Powell, Ms Jane
ID Code:8290
Deposited On:02 May 2006
Last Modified:12 Apr 2010 07:33
Document Language:English
Refereed:Not peer-reviewed

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