Organic farms are holding their own despite market challenges

Organic farms are holding their own despite market challenges
The University of Wales, Aberystwyth Institute of Rural Science's latest annual survey of organic farm incomes in England and Wales (2003/4) shows that organic farms of different types succeeded in maintaining their incomes. In doing so, they continued to achieve similar or better incomes than comparable conventional farms during a period which was acknowledged to be challenging from a marketing perspective, particularly for the organic dairy sector.

 The project's co-ordinator, Nic Lampkin said: ‘The data also confirm what every farmer already knows, that neither organic nor conventional farmers are making substantial profits. Although the results show some improvement for the conventional producers, significant further improvements will still be necessary for both groups to maintain business viability in the long term.’
 
 The report contains a detailed breakdown of outputs, production costs and returns to capital and labour, as well as production structures, prices achieved and yields on organic farms of different types. Gross margins for organic livestock, arable and horticulture are provided, as are benchmark costs of production for milk, beef and lamb.
 
 The 2003/4 report is the latest annual survey of organic farms in a series dating back to 1995/6, which have now all been published on the Defra website. The survey is conducted on the same basis as the Farm Business Survey and also integrates data from farms that are part of the FBS. It is funded as part of Defra’s organic farming research programme.
 
 The results are used as a basis for the Organic Farm Management Handbook, published every two years by the Institute of Rural Sciences and the Organic Advisory Service at Elm Farm Research Centre. The 2006/7 edition is scheduled for publication in April 2006.
 
 The Institute of Rural Sciences at the University of Wales, Aberystwyth, is responsible for the Welsh Farm Business Survey and has an extensive organic farming research programme focusing on business, marketing and policy issues. It also hosts Organic Centre Wales, an information centre funded by the Welsh Assembly Government.
 
 Andrew Jackson is the current lead researcher for this work (earlier reports were compiled by Susan Fowler, now policy co-ordinator at Organic Centre Wales.). Nic Lampkin is overall project co-ordinator and Director of Organic Centre Wales. Inquiries concerning the project and the results can be directed to Nic Lampkin in the first instance.
 
 The 2004/5 report in the Organic Farm Incomes in England and Wales series is expected to be published at the end of June 2006.
 
 The Organic Farm Management Handbook, published by the Institute of Rural Sciences, can be obtained from Organic Centre Wales 01970 622248,  .
 
 Defra is the main funder of organic farming research in the UK with an extensive programme covering technical, financial and marketing issues. For further information on the organic farming research programme.
 
 The Farm Business Survey provides information on the financial position and physical and economic performance of farm businesses in England and Wales, to inform policy decisions on matters affecting farm businesses and to enable analysis of impacts of policy options. It is intended to serve the needs of farmers, farming and land management interest groups, government (both national and European), government partners, and researchers.