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Efficiency of Polish Organic and Conventional Farms – Pilot Study Results
Abstract
Theoretical background: Organic farming is still a niche in Polish agriculture (but not only in Polish agriculture). According to Eurostat data, in 2020 only 2.7% of agricultural land (utilized agricultural area excluding kitchen gardens) was fully converted to organic farming. Efficiency is one of the most important issues when considering organic activities. Research often shows higher efficiency among conventional farms compared to organic, which may explain the limited interest among farmers in organic activities. The article addresses the problem of low interest in organic activities in Poland and contains the results of a pilot study conducted in 2023.
Purpose of the article: The article aims to assess and compare the economic efficiency of conventional and organic individual farms, as well as to characterize the basic motives and barriers to the conversion of conventional agricultural activities to organic ones on Polish farms from three voivodeships: Warmian-Masurian, Masovian and Lublin.
Research methods: The achievement of the goal formulated at the beginning of the article was possible by surveying a sample of farms that provided their accounting data through the Polish FADN (Farm Accountancy Data Network). Survey in the form of CATI was conducted in 2023 on a total sample of 55 farms (27 entities conducting certified organic activity and 28 entities conducting conventional activity). Financial data were obtained from individual reports provided by FADN. The efficiency of farms was assessed using DEA (Data Envelopment Analysis). The DEA input-oriented model was applied and it used total revenue as output, and agriculture area, total cost, and fixed assets as inputs.
Main findings: The analysis showed, first of all, differences between organic and conventional farms. It turns out that in the tested sample, organic farms are more effective than conventional entities. The most important motives for the surveyed farmers are economic ones, including higher subsidies than in the case of conventional activity and sales at higher prices. Before deciding to change their activity to organic farming, Polish farmers were afraid of low yields and high labor inputs. Importantly, the majority of conventional farmers are concerned about low yields.
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DOI: http://dx.doi.org/10.17951/h.2024.58.2.7-25
Date of publication: 2024-07-05 15:44:46
Date of submission: 2024-01-27 17:26:35
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