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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 on theme: "Organic Production Research Conference Tullamore, 2 nd December 2008 FINANCIAL PERFORMANCE OF ORGANIC FARMING L. Connolly J. McDonnell B. Moran."— Presentation transcript:

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

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

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

4 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

5 Organic Production Research Conference Tullamore, 2 nd December 2008 Irish Organic Farm Numbers and Area Farmed 1995-2008

6 Organic Production Research Conference Tullamore, 2 nd December 2008 Irish Organic Farm Numbers and Area Farmed 1995-2008

7 Organic Production Research Conference Tullamore, 2 nd December 2008 Land Use – Organic v Conventional Cattle Rearing 2007 OrganicConventional Ha Land farmed34.627.8 Pasture20.316.5 Forage6.77.2 Tillage crops0.2 Rough grazing3.62.8 Source: National Farm Survey

8 Organic Production Research Conference Tullamore, 2 nd December 2008 Livestock Units on Organic and Conventional Cattle Rearing Farms - 2007 OrganicConventional Livestock Units Cattle16.828.2 of which Suckler Cows11.116.8 Sheep0.21.0 Total17.029.4 Source: National Farm Survey

9 Organic Production Research Conference Tullamore, 2 nd December 2008 Stocking Rate on Organic and Conventional Cattle Rearing Farms - 2007 OrganicConventional Stocking Rate LU/HA0.500.95

10 Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms - 2007 OrganicConventional €/Farm Gross Output23,29225,518 of which Direct Payments17,88312,763 Source: National Farm Survey

11 Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms - 2007 OrganicConventional €/Farm Gross Output23,29225,518 of which Direct Payments17,88312,763 Direct Costs3,5047,696 Gross Margin19,78817,822 Source: National Farm Survey

12 Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms - 2007 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

13 Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms - 2007 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

14 Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms - 2007 OrganicConventional €/ha Gross Output673917 of which Direct Payments517459 Source: National Farm Survey

15 Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms - 2007 OrganicConventional €/ha Gross Output673917 of which Direct Payments517459 Direct Costs101278 Gross Margin572641 Source: National Farm Survey

16 Organic Production Research Conference Tullamore, 2 nd December 2008 Selected Financial Data For Organic and Conventional Cattle Rearing Farms - 2007 OrganicConventional €/ha Gross Output673917 of which Direct Payments517459 Direct Costs101278 Gross Margin572641 Overhead Costs139364 Family Farm Income (FFI)433277 Source: National Farm Survey

17 Organic Production Research Conference Tullamore, 2 nd December 2008 Direct Payments On Organic and Conventional Cattle Rearing Farms - 2007 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

18 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 Units1.140.95 Source: National Farm Survey

19 Organic Production Research Conference Tullamore, 2 nd December 2008 OrganicConventional €/Ha Gross Output2,6462,850 of which Direct Payments484434 Source: National Farm Survey Financial Data Organic Dairy Farms 2007

20 Organic Production Research Conference Tullamore, 2 nd December 2008 OrganicConventional €/Ha Gross Output2,6462,850 of which Direct Payments484434 Direct Costs708923 Gross Margin1,9381,927 Source: National Farm Survey Financial Data Organic Dairy Farms 2007

21 Organic Production Research Conference Tullamore, 2 nd December 2008 OrganicConventional €/Ha Gross Output2,6462,850 of which Direct Payments484434 Direct Costs708923 Gross Margin1,9381,927 Overhead Costs734800 Family Farm Income (FFI)1,2041,127 Source: National Farm Survey Financial Data Organic Dairy Farms 2007

22 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

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