Profitability of production in grassland organic farms in the years 2004-2006
2007
Prokopowicz, J. | JankowskaHuflejt, H.,Instytut Melioracji i Uzytkow Zielonych, Falenty (Poland)
Questionnaire studies were carried out in the years 2004-06 in 34 organic grassland farms. Areas of studied farms ranged from 3.13 ha to 319.42 ha and totalled 1500 ha of croplands. Grasslands contributed in 49.3 percent to total croplands (mean for the country is 21 percent). Economic results are presented in view of natural, agricultural and economic characteristics. The study was aimed at assessing whether organic grassland farms producing mainly healthy milk and beef might bring satisfactory economic results similar to those in traditional farms. Gross margin (per person fully employed in a farm and per ha of croplands) being the main profit category that helps making productive decisions in a farm was taken as the first criterion of economic assessment. The second criterion was the effectiveness index of fixed assets measured in zlotys of gross margin per zloty of fixed assets. Standard gross margin for the year 2005 is also given in the paper. Gross margin calculated both per ha and per capita showed increasing tendency. Only the drought in 2006 resulted in a decrease of mean trend of this index in farms from several provinces. Mean gross margin from three years was 2230 zl/ha of croplands and 23479 zl/capita. Most profitable was the year 2005 and the least 2004. Gross margin per ha decreased with increasing farm area: in the smallest farms (0-10 ha) it amounted 3500 zl/ha while in the largest (greater 50 ha) it was only 1158 zl/ha. On the contrary, per capita gross margin increased with increasing farm area from an average of 12172 zl in the smallest farms to 38770 zl/capita in the largest. Mean effectiveness index was 0.15 in the smallest farms and 0.40 in the group of the largest farms. Our studies showed that analysed type of farms might bring satisfactory economic results particularly with the consideration of the state and EU subsidies
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