Economic and social impacts of organic production systems

Abstract

Given relatively low adoption levels to date, the potential benefits of organic farming systems are not yet very visible. However, there is growing evidence in the literature that adoption of such systems produces multiple environmental, social, and financial benefits that can solve pressing agricultural problems in Canada. Compared with their duration as conventional operations, most organic farms in North America perform better under organic management. This outcome is usually a product of lower input costs, more diversified production and marketing channels, resilience in the face of variable market conditions, higher premiums, and a better capacity to adapt to weather extremes. However, the performance of farming systems including some horticultural and animal production systems, for which our ecological understanding is limited, is still frequently inferior. The data on social impacts are less conclusive, but there is some evidence that when a community has many sustainable (including organic) producers , there are positive shifts in community economic development and social interaction. The reasons appear to be related to the need to hire more labour, the increased demand for local goods and services, and a greater commitment to participation in civic in stitutions. Key words: Organic agriculture, economic performance, social benefits