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Facts & Figures

Income development on organic farms

Heike Kuhnert | 13.03.2023


BW Institute of Farm Economics

"It's the economy, stupid!" – Bill Clinton's legendary saying also applies to organic farming. Whether farmers invest in their organic farm or conventional farmers consider converting to organic farming depends decisively on what farm income is generated or achievable.

Income increases on organic farms

The Thünen Institute for Farm Economics has been investigating the income situation of organic farms participating in the German FADN sample for more than 20 years and publishes the annual results. In the economic year 2021/22, the income situation of the organic farms (n = 567) improved.

The organic farms of the German FADN achieved an average income of 42,607 euros (profit plus paid labour costs per AWU), compared to 38,986 euros in the previous year. This corresponds to an increase of 3,621 euros or 9 %. The organic arable farms had the highest income with 60,207 euros.

Incomes remain higher than for conventional farms

The incomes of organic farms are compared with the incomes of comparable conventional farms with similar locations and resource endowment. For the year 2021/22, the data of 446 organic farms (out of 567) could be compared with 1,862 conventional farms in the German FADN sample. The average income of the organic farms was around 3,460 euros higher than that of the conventional comparison group. While the organic farms included in the comparison earned on average 42,607 euros, the income of the conventional comparison farms was 39,147 euros.

It is striking that there are large differences in success within the organic farms. This is true both with regard to the different farm types and within the farm types studied, i.e. arable farming, dairy cattle, other forage production and mixed farming.

The most important results are summarised in the report "Analysis of the economic situation of organic farms in the economic year 2021/22".

 

Projects

Analysis of the economic situation of organic farming

The organic area shall further grow in view the German government. This requires that the organic management is profitable. Book-keeping records of the Farm Accountancy Network provide relevant information, if this was the case in the last years.

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Analysis of the economic situation of organic farming

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