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Productivity and Profitability of Organic Agriculture

Productivity of Organic Farms

Various studies find that versus conventional agriculture, organic crops yielded 91%, or 95-100%, along with 50% lower expenditure on fertilizer and energy, and 97% less pesticides, or 100% for corn and soybean, consuming less energy and zero pesticides. The results were attributed to lower yields in average, and good years, but higher yields during drought years.

A 2007 study, compiling research from 293 different comparisons into a single study to assess the overall efficiency of the two agricultural systems, has concluded that... "Organic methods could produce enough food on a global per capita basis to sustain the current human population, and potentially an even larger population, without increasing the agricultural land base."

Converted organic farms have lower pre-harvest yields than their conventional counterparts in developed countries (92%), but higher than their low-intensity counterparts in developing countries (132%). This is due to relatively lower adoption of fertilizers and pesticides in the developing world, compared to the intensive farming of the developed world.

Organic farms withstand severe weather conditions better than conventional farms, sometimes yielding 70-90% more than conventional farms during droughts. Organic farms are more profitable in drier countries, likely due to their superior drought performance. Organic farms survive hurricane damage much better, retaining 20-40% more topsoil, and smaller economic losses at highly significant levels than their neighbours.

Contrary to widespread belief, organic farming can build up soil organic matter better than conventional no-till farming, which suggests long-term yield benefits from organic farming. However, an 18-year study of organic methods on nutrient-depleted soil concluded that conventional methods were superior for soil fertility and yield in a cold-temperate climate, arguing that much of the benefits from organic farming are derived from imported materials which could not be regarded as "self-sustaining".

Profitability of Organic Agriculture

The decreased cost of synthetic fertilizer and pesticide inputs, along with the higher prices that consumers pay for organic produce, contribute to increased profits. Organic farms have been consistently found to be as or more profitable than conventional farms, especially with the price premium.

The market value of organically certified produce, now more than US$46 billion annually, has sustained steady annual growth for two decades, increasing by 10% in 2009 despite the global financial crisis.

Market-marginalized farmers are increasingly adopting organic agricultural practices, as they seek food self-sufficiency through a better use of existing resources.

Global consumer demand for organic food production is increasing, creating lucrative markets for smallholders and expanding the right to choose healthy foods.

Administrator @ 2011-07-31 11:09:13

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