Scholarly record

ANALYSIS OF INVESTMENT OPPORTUNITIES OF ORGANIC FARMS

U. Malaga-Toboła

Abstract

Ability of farms to undertake investments greatly depends on the production potential, production scale and thus on an economic force which may be described as an ability to develop and grow. This force, called economic effectiveness, is measured with the level of income that should cover not only the costs of use of own production factors i.e. land, capital, and work, but also enable investing in new assets of a farm. Since, if it does not obtain such incomes, then it ceases investment purchases and after some time collapses or becomes a non-developing farm. However, analyses of the market show that each year farmers invest even more in their farms, buying modern tractors, machines, devices, and a farming land. So far investment opportunities of farms that carry out their production based on the conventional system have been analysed and the aim of this paper is to determine the needs and investment opportunities of organic farms. Organic farming, because carried out naturally, will obtain lower production effects than conventional farms but at the same time will incur lower expenditures, since it does not apply chemical substances. Thus, to what extent can it afford investments? The studies covered 50 farms with a certificate of organic character of production, which to carry out comparative analysis were divided into area groups. The subject of the studies were farms that were oriented at general plant production, mixed one and specialist vegetable, horticultural and dairy production.

Publication Impact Profile

No metrics available.

PLUMX see details

DOI resolver: doi.org/10.5593/sgem2019/5.3/s21.006

Publication details

Back to publication list