Organic Production Research Conference Tullamore, 2 nd December 2008 FINANCIAL PERFORMANCE OF ORGANIC FARMING L. Connolly J. McDonnell B. Moran.

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Presentation transcript:

Organic Production Research Conference Tullamore, 2 nd December 2008 FINANCIAL PERFORMANCE OF ORGANIC FARMING L. Connolly J. McDonnell B. Moran

Organic Production Research Conference Tullamore, 2 nd December 2008 OUTLINE  Background  Methods  Farm Numbers  Technical Details  Financial Results  Socio-Economic Data  Conclusions

Organic Production Research Conference Tullamore, 2 nd December 2008 OBJECTIVE  Compare Financial & Technical Performance of Organic Cattle Rearing and Dairy Farms to Conventional Farms

Organic Production Research Conference Tullamore, 2 nd December 2008 METHODS  Organic Farm Data : Suckler & Dairy Farms Participating in Organic Monitor Farm Project  Conventional Farm Data : Suckler & Dairy farms in Teagasc National Farm Survey  All Data Recorded/Analysed on NFS Recording & Analysis System

Organic Production Research Conference Tullamore, 2 nd December 2008 Irish Organic Farm Numbers and Area Farmed

Organic Production Research Conference Tullamore, 2 nd December 2008 Irish Organic Farm Numbers and Area Farmed

Organic Production Research Conference Tullamore, 2 nd December 2008 Land Use – Organic v Conventional Cattle Rearing 2007 OrganicConventional Ha Land farmed Pasture Forage Tillage crops0.2 Rough grazing Source: National Farm Survey

Organic Production Research Conference Tullamore, 2 nd December 2008 Livestock Units on Organic and Conventional Cattle Rearing Farms OrganicConventional Livestock Units Cattle of which Suckler Cows Sheep Total Source: National Farm Survey

Organic Production Research Conference Tullamore, 2 nd December 2008 Stocking Rate on Organic and Conventional Cattle Rearing Farms OrganicConventional Stocking Rate LU/HA

Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms OrganicConventional €/Farm Gross Output23,29225,518 of which Direct Payments17,88312,763 Source: National Farm Survey

Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms OrganicConventional €/Farm Gross Output23,29225,518 of which Direct Payments17,88312,763 Direct Costs3,5047,696 Gross Margin19,78817,822 Source: National Farm Survey

Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms OrganicConventional €/Farm Gross Output23,29225,518 of which Direct Payments17,88312,763 Direct Costs3,5047,696 Gross Margin19,78817,822 Overhead Costs4,81310,120 Family Farm Income (FFI)14,9757,702 Source: National Farm Survey

Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms OrganicConventional €/Farm Gross Output23,29225,518 of which Direct Payments17,88312,763 Direct Costs3,5047,696 Gross Margin19,78817,822 Overhead Costs4,81310,120 Family Farm Income (FFI)14,9757,702 T. Costs % Output35%70% Source: National Farm Survey

Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms OrganicConventional €/ha Gross Output of which Direct Payments Source: National Farm Survey

Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms OrganicConventional €/ha Gross Output of which Direct Payments Direct Costs Gross Margin Source: National Farm Survey

Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms OrganicConventional €/ha Gross Output of which Direct Payments Direct Costs Gross Margin Overhead Costs Family Farm Income (FFI) Source: National Farm Survey

Organic Production Research Conference Tullamore, 2 nd December 2008 Direct Payments On Organic and Conventional Cattle Rearing Farms OrganicConventional €/Farm Direct Payments17,88312,763 of which *SFP5,7407,990 *REPS9,1632,649 *DAS2,9802,115 Source: National Farm Survey *SFP – Single Farm Payment; *REPS = Rural Environmental Protection Scheme; *DAS = Disadvantaged Area Compensatory Scheme

Organic Production Research Conference Tullamore, 2 nd December 2008 Socio-Economic Data Organic Suckler Farms 2007 OrganicConventional Age Farmer5054 Married (%)7265 Off-Farm Income (%Holders/Spouse)6562 Demographically Viable (%)9275 Labour Units Source: National Farm Survey

Organic Production Research Conference Tullamore, 2 nd December 2008 OrganicConventional €/Ha Gross Output2,6462,850 of which Direct Payments Source: National Farm Survey Financial Data Organic Dairy Farms 2007

Organic Production Research Conference Tullamore, 2 nd December 2008 OrganicConventional €/Ha Gross Output2,6462,850 of which Direct Payments Direct Costs Gross Margin1,9381,927 Source: National Farm Survey Financial Data Organic Dairy Farms 2007

Organic Production Research Conference Tullamore, 2 nd December 2008 OrganicConventional €/Ha Gross Output2,6462,850 of which Direct Payments Direct Costs Gross Margin1,9381,927 Overhead Costs Family Farm Income (FFI)1,2041,127 Source: National Farm Survey Financial Data Organic Dairy Farms 2007

Organic Production Research Conference Tullamore, 2 nd December 2008 CONCLUSIONS  Number of Irish organic farms low v EU  Technical efficiency – lower on Organic Farms  FFI/Ha - higher on Organic Farms - lower production costs - higher subsidies  Organic - higher Labour - more demographically viable