Organic farming: how it stacks up

Organic farming: how it stacks upOur report published in March 2014, Organic farming: how it stacks up, looks at the economics of organic farming.

All farmers, whether organic or not, need to monitor their finances. Many like to glance over the fence to see how their neighbours are coping with changing times.

How would I fare if I converted to organic farming or decertified? Will the prices cover the costs of production and leave a decent margin? And how will changing CAP payments, volatile input costs, the effects of climate change and emerging export markets change the picture?

To help with these decisions we have commissioned an analysis comparing how organic and non-organic farms have fared over the past six years. What is the overall pattern and what factors have most affected their bottom line?

The headline news is good for organic farmers.

The average annual farm business income (£/ha) over the six-year period shows that organic enterprises  are outperforming non-organic, in some sectors to the tune of almost £80 per hectare per year. Even between 2008 and 2011, when UK organic sales were in decline, organic farming remained more profitable than non-organic production for most farm types.

Download your free copy of the report which includes full data and commentary on:

  • The overall picture
  • The organic advantage
  • The organic challenge
  • Arable
  • Mixed farms
  • Dairy farms
  • Lowland beef and sheep farms

Download the report

CAP reform

In March 2014, we arranged two events with Abacus Organic which examined how CAP reform may affect the future for organic farmers and how well organic farms have been performing financially over recent years. The presentations below provide detail on how CAP reform and the proposed exemptions for organic land from the greening measures under pillar 1 may favour organic farmers financially. The less obvious benefits of releasing capital and assets by converting to organic farming are also examined in depth. A financial appraisal of different organic farming systems and how they compare to their non-organic equivalents completes the picture.

 

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Download your free copy of the full report

Organic farming: how it stacks up - report cover

 

Organic Market Report

Organic Market Report cover - 2014You might also be interested in our latest Organic Market Report. Published in March 2014, it reveals that sales of organic products in the UK grew by 2.8% in 2013, a decisive return to growth after four years of contraction.