Deputy Director

Secretariat

Kerstin Martens
Institute of Farm Economics

Bundesallee 63
38116 Braunschweig
Phone: +49 531 596 5102
Fax: +49 531 596 5199
bw@thuenen.de


Impact of changing policy framework conditions on organic farming

Project

 (c) ©BLE, Bonn, Foto Dominic Menzler

The development of organic farming is heavily influenced by the general agricultural policy framework, which are continously changed. What are the impacts of the recent reforms on the organic sector?

Background and Objective

In addition to the increasing demand for organic products, the expansion of organic farming has been favoured by a number of policy instruments since 2001. Within the existing bouquet of policy measures, the most important are area based payments in the framework of agri environment programs. Despite the relatively favourable market conditions and government support in Germany, the politically set goal of a share of 20 percent organic area has not yet been achieved. Whether a significantly larger number of farms will be converted to organic farming in the future as until now depends, among other things, on the specific organic area payments and the general agricultural policy framework conditions. In light of the continuously changing support policy, the Institute uses quantitative models and written surveys to analyse the income effects of agricultural policy reforms and assesses the efficiency of alternative support policies.

Results

Model based projections for the year 2023 in the framework of the Thünen Baseline show that organic farms increase their profits as a consequence of an expansion of production and assumed yield increases despite largely sinking producer prices. At the same time the organic farms profit from a slight increase in direct payments. The positive income effects are, however, overshadowed by increasing farm input prices. In the projection for the year 2023, the organic farms thus achieve a somewhat lower average farm income per labour unit in contrast to the base year period (2009/10 to 2011/12). The analysis shows that organic farms can essentially profit from the CAP reform (in particular from the shift of funding from the first to the second pillar). The income impacts of the reform are, however, limited for organic farms in the medium-term.

Thünen-Contact


Involved Thünen-Partners


Funding Body

  • Federal Office for Agriculture and Food (BLE)
    (national, öffentlich)

Duration

Permanent task 10.2007

More Information

Projekt type:
Funding program: Bundesprogramm Ökologischer Landbau und andere Formen nachhaltiger Landwirtschaft (BÖLN)
Project status: finished

Publications to the project

Results 6 - 10 of 10

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  1. Sanders J, Nieberg H, Offermann F (2011) Impact of the 2003 CAP Reform on organic farming in Germany. In: Sorrentino A, Henke R, Severini S (eds) The Common Agricultural Policy after the Fischler reform : national implementations, impact assessment and the agenda for future reforms. Aldershot; Brookfield: Ashgate, pp 231-243
  2. Nieberg H, Sanders J, Offermann F (2010) Politik muss verlässlich sein. Bio Land(8):6-7
  3. Offermann F, Gömann H, Kreins P, Ledebur O von, Pelikan J, Salamon P, Sanders J (2010) vTI-Baseline 2009 to 2019: Agri-economic projections for Germany. Landbauforsch 60(3):157-172
    pdf document 420 kb
  4. Nieberg H, Sanders J, Offermann F (2010) Wirtschaftlicher Erfolg durch Ökolandbau. Forschungsreport Ernähr Landwirtsch Verbrauchersch(2):12-14
  5. Nieberg H, Offermann F, Zander K (2007) Organic farms in a changing policy environment: impacts of support payments, EU-enlargement and Luxembourg reform. Stuttgart-Hohenheim: Institut für Landwirtschaftliche Betriebslehre, XXIX, 243 p, Organic Farming Europe 13

Results 6 - 10 of 10

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