Is Organic Farming Profitable? – The Ultimate Truth Revealed

Is organic farming profitable

Let me guess.

Either you want to start your organic farming business or already started one, and you are thinking, “Is organic farming profitable or the tables will never turn down?”.

If you are tensed about knowing the real numbers behind running a real organic farm, you are definitely not alone.

In this definitive guide, I will tell you exactly whether organic farming is profitable than conventional farming or not with some concrete data and some serious researches.

So, if you want to know whether you can pay off your monthly bills and make a fortune through organic farming, then you are at the right place.

But before getting into real details about organic farming profitability, you truly need to know how farmers make and save money.

Let’s begin.


Understanding How Farmers Make and Save Money

Organic farming profitability

Most of us only focus on the earning part when it comes to organic farming or anything else.

But did you ever realize that in organic agriculture, you can also make money by saving money?

Yeah, a penny saved is a penny earned is true in this case.

But exactly how does this work here?

So, an organic farmer has his/her main income by selling his organic products by listing them under the tag ‘premium’ or ‘organic’ which applies only if you have the organic certification.

Besides making money by selling your finished products, you also earn an extra layer of revenue by:

  • Saving money by not buying synthetic fertilizers.
  • Not working with expensive and modern machines and mostly relying on manpower.
  • Feeding your livestock less yet the nutritious amount of foods. Organic livestock often cost less than you might think as less organic food is often healthier than a lot of conventionally grown food.

These are some of the points that conclude that organic farming lets you earn money by saving on few critical elements.

Though it does not mean only a win-win situation for organic farmers.

While they save on some of the above-mentioned things, they have to spend extra on manual laborers for almost everything such as Pruning and Roguing crops, disease management, and so on.

However, you might have got a somewhat clear perspective of how organic agriculturists benefit from saving on things that conventional farmers cannot compromise on.

With that out of the way, let’s get into the most significant concept of this article: profitability.

Is Organic Farming Profitable?

After thorough research and various studies, it has been found out that organic farming is nearly 29-32% more profitable than conventional farming.

So yes, organic agriculture is definitely more profitable than non-organic farming.

Through the yields being lower at around 10-18%, organic farming has shown a significant increase in its profits due to the premium pricing.

A big credit goes to all the organic farmers who are burning the midnight oil in maintaining and growing the crops the right way.

A premium pricing for organic food should be a compliment for their hard work.

Organic farming is more profitable than conventional farming in most cases.

But there is this common question that is asked by many: “If organic farming is profitable, then why is it not followed and practiced by many?”

The reasons are many.

But some of the most common fears regarding organic farming are as follows:

  • 3-year transitioning (waiting) period before moving completely towards organic farming (to get certification).
  • Requires a lot of manual work than conventional farming.
  • The increased cost of production.
  • Not practiced by a majority.
  • Difficult to build trust and convince people that your products are 100% organic.
  • Etc.

However, if done right, you can reap rewards from organic farming if you continuously do it the right way for at least 2-4 years.

Who knows which company may end up signing up an offer or a dealbreaker with your organic food products.

None of the fears can outweigh the benefits, especially the environmental benefits of organic farming.

Factors That Determines an Organic Farm Profitability

Multiple aspects determine the extent of revenue and profit that any organic farmer can expect over the years.

However, all things being equal, one thing is clear and common: Almost every organic farming makes less profit in his/her initial years of starting organic farming.

Why?

For any field to adapt to the favorable condition for organic agri-business, it needs some time to increase the biodiversity, soil fertility, environment, beneficial gases, etc.

And this is natural.

However, there are some of the most common metrics that can help you forecast the exact or nearest number that you can expect from your farm.

In fact, if you are lucky enough, you can uncover the details like organic farming profit per acre and overall profit as per the land area.

Here are six rudiments that will assist you in shaping whether organic farming is actually profitable for you:

Size of the land

According to India Today, one cow is enough for handling your five acres of organic land without using any manures.

Not only that, many other studies have derived one common pattern for starting your own successful organic farming business: To get the highest premium on your organically grown food, choose small field areas.

Also, locating your farm in urban areas proves to be more profitable as there is an already available large consumer base waiting for your vigorous product.

Yielding

Yields obviously matter in analyzing your actual profit.

The more you can produce, the higher amount you will get paid.

As simple as that.

But here’s the deal:

Organic yields are much lesser than that of conventional farming.

Reason?

Perhaps because of the small favorable land size as discussed earlier. Along with that, no use of synthetic pesticides and different crop handling methods is also one of the reasons.

However, once the farm adapts to its typical organic condition, it will cope with the yields you wish for.

Pro-Tip: The best thing that you can do to increase your yields is to use more green manures and timely use of appropriate methods, as suggested by the Technologist.

Cost of production

The cost of production largely affects the profits made on organic foods.

Be it seeding, harvesting, roguing, pruning, or anything else, organic farming encourages the use of manual laborers for every minuscule task taking place in an organic farm.

This eventually increases the cost of production and cost of labor.

But if you want to achieve a sound profit figure, you need to invest.

It always pays off in the end.

Livestock

The more organic animals you have on your farm, you more cost you will bear in feeding and taking care of them.

In return, a cow, for example, maybe a source of regular supply of milk.

Similar to earthworms that help in improving the fertility of the soil and chasing away the harmful predators.

Place

As discussed earlier, having an organic farm in an urban area may increase your overall profitability.

But even if your farm is located in a remote area and you are good with transportation, this is not a huge issue.

This was everything that you need to know about organic farming profitability.

Hopefully, you learned something new from this article.

You also got to know that profitability is not limited only to a specific outcome. There is much more to it and different things affect the money.

So finally, is organic farming lucrative?

Yes, organic farming is lucrative and even if the premium prices of organic food are cut off nominally, it can retain its profitability.

If we compare organic vs conventional farming while keeping all things equal, the former truly leads the way towards the future.

Organic farming is the cryptocurrency of the agriculture sector.

Now, it’s your turn.

Tell me. Did I miss anything really important about this topic?

Let me know your thoughts in the comments below right now.

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