Exploring the economics and cost-effectiveness of the organic transition by developing a farm-specific assessment methodology
Exploring the economic impact and cost-effectiveness of the organic conversion for a given farm is essential to enable the producer to make an informed decision to switch to another technology. There are still very few agro-economic surveys in Hungary today that provide an overview of the likely costs and income that will be incurred, based on the farm’s specific situation, and then suggest a timetable and a method for conversion. There is also a lack of supporting data on the costs and income incurred by farms that have already converted or are in the process of converting. At the same time, in order to increase the volume of domestic organic food production proportionately with area-based payments, it is important that producers are able to make decisions based on a business case and economic rationale, thus promoting conversion in sectors where without this economic baseline data, technology change would be too risky.
The aim of the work is to increase the willingness and success rate of conversion in the more economically risky organic food production sectors, thereby increasing the amount of organic food produced in the country. This will contribute to the achievement of the targets set in the National Action Plan for the Development of Organic Farming.
Activities
- The available international practices will be reviewed, and the methodology of the conversion surveys will be adapted to the specificities and identified market opportunities of domestic farms.
- We are testing the domestic methodology for the conversion survey in our on-farm network and finalising it with farmers. The final methodology will be put into practice in the form of conversion surveys carried out by expert advisors.
- In addition, in cooperation with the Institute of Agricultural Economics, and following the methodological recommendations of the AKI, we will establish a data collection network with the voluntary participation of organic farmers both in the conversion phase and those who are already certified organic producers, in order to provide current and real cost-income data to support the conversion surveys.
Expected results
- We will adapt and develop a methodology for the collection of farm management data for partially or fully converted holdings.
- We will produce training material and a guide for advisors on how to carry out a farmer survey to prepare farmers for the transition to organic farming.
- We provide further training on how to implement surveys in practice, involving consultants in concrete factory surveys.
- A network will be set up to monitor the cost-income ratio of organic farmers.
Contact person
Dr. Péter Jobbágy
Research project lead
Chartered Agricultural Engineer in Rural Development, Ph.D., German-Hungarian and English-Hungarian translator
The implementation of the research is supported by Hungarian National Rural Network (MNVH): www.videkihalozat.eu
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