Farming News - Does it pay to be an organic farmer?

Does it pay to be an organic farmer?

Economic and Environmental benefits of Organic Farming

Apart from the type of farm you run and the goods you produce, the greatest divide in UK farming is between organic and traditional processes. For many years, organic and traditional farmers have endorsed the advantages of both methods, but in 2017, which is the most beneficial?

Lycetts, a farm insurance provider, is here to explore the various sides of organic farming and how it could affect your profit margin and way of working.

Organic Farm Types

Regardless of whether you run an arable farm, pastoral farm, or anything else; organic agriculture can be practiced across the industry. According to findings, poultry is the most popular organic livestock type in the UK and has even risen by 10% in 2016 to more than 2.8 million birds — a figure that far exceeds the 840,800 sheep, 296,400 cattle and 31,500 pigs that make up the next three most popular types of livestock farmed organically.

The three main types of crops grown organically in the UK are cereals, vegetables — which includes potatoes — and other arable crops. Here’s a list of how large an area each type of crop constituted in UK organic farming:

  • Barley: 12,900 hectares.
  • Oats: 11,600 hectares.
  • Wheat: 10,900 hectares.
  • Fodder, forage and silage: 5,400 hectares.
  • Maize, oilseeds and protein crops: 1,700 hectares.
  • Sugar beet: 100 hectares.

These figures suggest that changing to organic farming methods is possible for a range of farmers, regardless of specialisation.

The Origins of Organic Farming

Today, organic farming is considered an alternative farming system that relies on natural fertilisers and farming techniques to encourage growth or food products and animals. Organic farming began in the early 20th century, with the primary aim to develop enterprises that are both sustainable and kind to the environment — an ethos it still carries.

How widespread are organic farms in the UK?

It seems that the amount of organically-sourced produce — from clothing to food — has rocketed in recent years. But surprisingly, organic farming accounts for just 1% of cropland around the world. The UK has a total area of 508,000 hectares of land that was farmed organically in 2016, according to the Department for Environment Food & Rural Affairs’ Organic Farming Statistics 2016 report. In the same year, the total number of organic producers and processors stood at 6,363 — up 5.1% from 2015.

These statistics offer a positive outlook for organic farmers and those looking to make the change to organic agriculture. However, there are some points to consider:

  • The total area of organic farming land in the UK declined overall by 32% since its peak in 2008, according to the 2016 report.
  • Organic farms must not use artificial chemical fertilisers, genetically modified crops or wormers.
  • Organic farmers should adopt processes including clover (to extract nitrogen from the air), soil rotation and other organic matter — like compost — to develop fertile earth.

Profit potential of organic farms

Even in the academic world, organic farming has been discussed at great lengths — understandable, considering the environmental impact of agriculture. John Reganold, a Regents Professor of Soil Science & Agroecology at the Washington State University, and doctoral student Jonathan Wachter used their Organic Agriculture in the 21st Century study to assert that organic agriculture has high potential.

So, what does this study state about the cost-effectiveness of organic in comparison to conventional agriculture? According to Professor Reganold, organic farming systems delivered 10-20% less produce than standard farming, on average. However, he is firmly in support of organic farming.

“Overall, organic farms tend to have better soil quality and reduce soil erosion compared to their conventional counterparts. Organic agriculture generally creates less soil and water pollution and lower greenhouse gas emissions, and is more energy efficient. Organic agriculture is also associated with greater biodiversity of plants, animals, insects and microbes, as well as genetic diversity,” stated Professor Reganold in an article by The Guardian.

Despite the improved soil quality, reduced water pollution and lower harmful emissions; many farmers will be dissuaded from switching to organic methods if they aren’t going to be able to produce the same yields as before.Professor Reganold added: “Despite lower yields, organic agriculture is more profitable (by 22–35%) for farmers because consumers are willing to pay more. These higher prices essentially compensate farmers for preserving the quality of their land.”

The effects of organic farms on wildlife and food quality

Reducing our carbon footprints is not solely an agriculture initiative, but it is still important that farmers look for ways to reduce negative effects on the environment. Apparently, if all farms suddenly transformed into organic establishments, we would see the use of pesticides decrease by 98% across Wales and England. Here are some other organic farming statistics, according to The Soil Association:

  • 43% of British food was found to contain pesticide residues after government testing in 2015.
  • More than 17,800 tonnes of pesticides were used on British farms in 2015.
  • There was a 50% average increase of wildlife found on organic farms (which is excellent news when you consider that wildlife numbers have dropped by 50% since 1970).

How simple is it to become an organic farmer?

Organic produce is big business in a world of get-fit-quick schemes and healthy-eating initiatives. So, what is the process you have to follow to become an organic farmer? Firstly, you have to register with an organic control body. Then, submit your application and wait for an inspection. Once this has been carried out and you’re successful, you’ll receive a certificate from an organic control body (CB).

It’s illegal to claim that a food product is organic if it hasn’t been inspected and certified by a CB, and the process of becoming an organic farmer can take up to two years. However, it could be the critical direction you must take your farm in to boost profits and maintain an eco-friendly establishment.