Cost and profit Analysis of Organic and Conventional Farming in Hungary

Abstract

The object of this analysis was to compare the organic and the conventional farming on the basis of primer database and modeling at the location of Hortobágy that is a well-known organic farming region in Hungary. 20 model variations were worked out for the conventional and 20 for the organic farming situation. According to the results, there is no significant difference considering the costs per hectare in the two modeled farming methods, although the structures of the production costs show huge deviations. The cost per production unit is typically higher in the organic model. Considering most of the model variations, organic farming is proved to be more profitable, but this economic pre-eminence is not explicit by any means.