Economic Implications of Organic Farming Essay

Published: 2020-04-22 08:24:05
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For the past years, the number of farmers involved in organic farming has been increasing. Producers and consumers are being more and more interested in organically grown produce. This becomes a window for the emergence of a new market in the industry, and that is the organic food market. Organic farming in its simplest terms is a production system or method which does not use, or at the very least, avoids the use of synthetic fertilizers, pesticides and other additives. It usually uses animal manure, crop rotation, manual cultivation of the land, and the biological and normal control of pests.

It also maintains the natural and ecological cycle of the environment. One main difference of organic farming and conventional farming is in the crops they plant. Conventional farming has specializes in a certain crop, while organic farming has varied crops. Benefits of Using Organic Farming Methods Organic Farming is also called low-input farming. Many farmers adopt this farming method for economic survival. Most of the reasons of organic farmers are the health and safety of their families, consumers, livestock, and also the land they till.

Because of the inflationary events happening in the economy, input prices for chemicals and other inorganic materials increase, while making the commodity prices lower. This induces conventional farmers to increase their commodity prices too. Organic farmers who are already veterans in the field are less vulnerable to natural and economic hazards than conventional farmers because organic farmers have a more broad and diversified system. Organic farmers are also not yet captured in tax deductions, maybe because organic farmers are not yet in the formal market.

Looking at the national or macroeconomic scale, conversion to organic farming would also bring about a number of advantages. First, it would reduce the governments costs for supporting commodity prices. Since inputs are low, prices will then be low too. So there will be no need for a high federal support for commodity prices. Second, it will reduce conserve fossil fuels, reduce the social costs linked with erosion, and improve fish and wildlife territories. These are all environmental outcomes of the adoption of organic farming.

Given that organic farming will make use of earth friendly inputs, degradation effects to the environment will be greatly minimized. Lastly, it insures the productivity of the land for future use. Organic farming method does not make use of hazardous chemicals that may pile up and have a long term negative externality on the land. Then again, if a widespread transfer of conventional farmers to organic farming will occur, there would be an unfavorable impact on the balance of trade. This could result to a trade deficit.

The trade balance is also synonymous to the difference of a countrys output of a good and the consumers demand for the good. A simultaneous transfer of farmers to organic farming could heavily increase the production of organic produce, and yet the demand may remain the same. After I have discussed the macroeconomic level, I will now look into the microeconomic effects of organic farming. This will capture the effects to farmers in communities. As I have said earlier, this will lead to an increase in the income, with less input costs, to organic farmers.

The farmlands will be more nourished because of all natural methods. Macroeconomic researches and studies will then quantify the social benefits and losses, which will aid decision makers and policy makers to compare organic farming with other policy options. What are the cons and pros of organic farming to the society as a whole? Who are the ones who lose, by how much; and what are the gains received by those who benefit from organic farming. Organic farming is also beneficial for those families with small farms and cant afford to buy artificial pesticides and other chemicals.

They already have a income-generating activity, which is healthy and profitable. Organic farming also protects the biodiversity of the world. Other creatures are not harmed by the farming method. Instead, they even benefit from it. Issues on Organic Farming The USDA has plans of globalizing organic agriculture. However, there are issues concerning organic farming. Still, necessary precautions should be done in order to avoid the overuse and negative externalities of organic farming.

Conventional or traditional farmers argue that organic agriculture would not yield enough supply to meet domestic and international requirements (Hanley, 2006). Instead, they contend that conventional farming methods such as genetically modified crops (GMCs), and other chemically-induced components and fertilizers in order to produce high yields, still be used. But studies have proven that hunger in many nations is not de to lack of food itself. But as Ive researched, it shows that it is to the inefficient rationing of food across the globe.

Also, the conventional industrial farming system does not give adequate nutrition to its consumers. Thus, people are not nourished well, even with abundant food production. With people knowing that it does not provide ample sustenance, their demand for these goods then decline. This leaves many local farmers to face unemployment due to a surplus, with low prices. People who believe that organic farming is the key to these suspicions then push for the globalization of organic farming. When we use the term globalization, it means that there will be interdependence among and across countries, in this case, in organic products.

To add to the benefits I have cited above, organic agriculture also yielded more crops and granted a surplus for local farmers to sell. This is contrary to what supporters of conventional farming have said. It also gave high returns and profit to the producers and also the community. Lastly, it gave empowerment and confidence to the community. They now know that they can produce healthy and environment-friendly food without the hazards. The practice of organic agriculture was also cost effective, which means that the costs needed were not much and yet they were put to its best use.

It also showed that it was reasonably priced for the farmers and they were even able to train their co-farmers thus providing employment to other members of their community. Before the actual testing of organic farming, people already had expectations on what the returns would be. Such were improved soil quality, since crop rotation will be adopted and this increases the quality of the land. There will also be a reduction in pesticides and diseases, and improvements in taste and nutrients were also noticeable.

These were due to the use of natural methods in farming; no hazardous chemicals could seep into the soil, and no more spraying of pesticides which could have carried on effects to those who will eat it. According to the USDA, U. S. farmers are adopting these organic farming systems in order to decrease the expenses in inputs and materials, conserve nonrenewable resources, penetrate the high-value markets, and further improve farmers incomes. The table below shows the estimates of how many farmers are already adopting this organic farming method.

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