Economic Results of Winter Wheat and Winter Rye Production in Organic Farms – a Case Study

Marcin Żekało
Institute of Agricultural and Food Economics – National Research Institute, Poland
Żekało, Marcin; ORCID: 0000-0001-8011-6772 (Institute of Agricultural and Food Economics – National Research Institute, Poland)
Economic Results of Winter Wheat and Winter Rye Production in Organic Farms – a Case Study
Zeszyty Naukowe SGGW w Warszawie - Problemy Rolnictwa Światowego, 2019, vol.19(34), nr 2, s. 248-255

Słowa kluczowe

organic production direct costs profitability Poland

Key words

organic production direct costs profitability Poland

JEL Classification

Q12 D24

Streszczenie

Studies on the economics of agricultural production in organic farms are carried out on a small scale but deliver important information about the situation of organic agricultural producers. The aim of this paper is to examine the economic and production results of organic farms cultivating winter wheat and winter rye in relation to the results of conventional farms (by way of case study). The paper used actual accounting data collected in the Agrokoszty system and Polish FADN and direct interviews with organic farmers. For detailed comparison of the economic results the methodology of calculating gross margin was used. When compared to conventional farms, the winter wheat and winter rye production results were weaker in organic farms, and a lower yield of grain was demonstrated. The selling price of organic grain was more favourable only for winter wheat. The surveyed farmers indicate the will to continue organic production. However, it is necessary to develop the organic product market and for further financial support for this production sector.

Abstract

Studies on the economics of agricultural production in organic farms are carried out on a small scale but deliver important information about the situation of organic agricultural producers. The aim of this paper is to examine the economic and production results of organic farms cultivating winter wheat and winter rye in relation to the results of conventional farms (by way of case study). The paper used actual accounting data collected in the Agrokoszty system and Polish FADN and direct interviews with organic farmers. For detailed comparison of the economic results the methodology of calculating gross margin was used. When compared to conventional farms, the winter wheat and winter rye production results were weaker in organic farms, and a lower yield of grain was demonstrated. The selling price of organic grain was more favourable only for winter wheat. The surveyed farmers indicate the will to continue organic production. However, it is necessary to develop the organic product market and for further financial support for this production sector.