The Economics of Organic Farming

Abstract

Organic farming has emerged as a significant alternative agricultural system globally, driven by consumer demand for healthier food and environmental sustainability. This paper explores the economics of organic farming, focusing on its financial viability, market dynamics, and broader economic impacts. Firstly, it examines the costs and benefits associated with organic farming practices compared to conventional methods. Despite higher initial costs due to organic certification, reduced chemical inputs, and increased labor, organic farms often achieve competitive returns through premium prices for organic products and potentially lower long-term environmental and health costs.