Differences in the financial management of conventional, organic, and biodynamic farms

Abstract

The financial management of conventional, organic, and biodynamic farms was evaluated and compared. It is a highly specific issue filling in the gap namely in the area of economic research of biodynamic agriculture. Biodynamic agriculture is a less widespread concept of agriculture, the management of which meets the requirements of organic agriculture. Organic agriculture has still been gaining in importance in the Czech Republic, the number of organic farms has been growing, and availability of organic products has increased, too. Of the Czech farms receiving subsidies from the EU or state subsidies in 2007-2012, a total of 389 were selected for analysis (273 of which were conventional farms, 112 organic farms, and 4 farms were engaged in biodynamic agriculture). Subsidies, Total Costs, Operating Revenue, Profit and Gross Value Added indicators were selected for evaluation. The individual indicators within groups of companies were compared by means of a t-test. The analysis revealed significant differences in the economic indicators of individual types of farms. It was observed that organic enterprises have better economic results than conventional and biodynamic businesses. Subsidies help all types of farms achieve better results. We may hence assume dependence of these farms on subsidies.