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Factors affecting profitability of organic farms - OF0155

Currently, little work has been carried out in the UK or elsewhere in Europe on the key factors which influence the profitability of organic farms. This study will aim to determine the physical, economic and management factors influencing the profitability of different types of organic farms, in order to direct future research relating to organic agriculture. The study will be composed of 4 specific objectives which are outlined as follows, together with ways in which they might be achieved: 1. Identification of a preliminary set of factors which affects the profitability of organic farms in the UK or Europe. A general literature review will be performed which relates to farming styles, farm business management and performance indicators, followed by a round-table discussion; 2. Use of appropriate statistical techniques such as linear regression and principal component analysis, to analyse 1995/1996 and 1996/1997 organic farming incomes and gross margin data. Key input/output relationships and factors contributing to variability in performance will be pinpointed; 3. Use of case studies and modelling to deepen the understanding of factors identified previously. Four case study farms will be identified from the data set and factors influencing either very high or very poor performances will be examined. Case studies will involve semi-structured recorded interviews with farm managers, while models will be used to estimate the impact of changing assumptions concerning key variables regarding organic farm profitability; and 4. Production of a report outlining the major factors affecting organic farm profitability. A round table discussion will also determine key conclusions and their implications for future research priorities.
Project Documents
• Final Report : Factors Affecting the Profitability of organic farms   (994k)
Time-Scale and Cost
From: 1998

To: 1999

Cost: £24,158
Contractor / Funded Organisations
University - Wales, Aberystwth
Economic Research              
Organic Farming              
Fields of Study
Organic Farming