Compensation for organic production and farm profitability

The goal of the Swedish food strategy is to increase food production without harming the environment. To succeed, organic farming is perceived important. However, converting to organic farming implies risks for the individual farmer as there is a great deal of uncertainty about future markets and price formation for organic products. In addition, many experience uncertainty about rules and compensation for organic production. Understanding how converting to organic production affects farms’ profitability is thus important.

The project analyses farms’ profitability, before- and after they receive organic payments. The aim is to learn more about the impact of organic production on farms’ finances, and if the payments are fully compensating for the increased cost or not.

The project is financed by the Swedish Board of Agriculture and will be completed in autumn 2020.

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