Organic farm incomes competitive, says report
No-one ever said that organic farming was an automatic route to riches, but it’s great to see the latest research that confirms it’s also not the road to ruin!
Understanding the profitability of organic farming is an important piece of the research puzzle because it answers one of the fundamental questions any farmer is going to ask themselves when considering entering (or staying in) organics. Being organic because of your ideals is admirable, but everyone has to feed their family as well.
The latest report into farm incomes from Aberystwyth University and the Organic Research Centre shows incomes from organic and non-organic businesses to be on a par, overall, even in these tougher times for a sector seen as producing premium product, as organic often is.
The picture varies across some farm types (notably LFA cattle and sheep) but the absence of significant differences in many sectors is highly encouraging.
It’s the result of pretty extensive comparison between the two approaches to farming and is well worth spending some time studying the graphs and their conclusions. It’s also underpinned by reports on the topic going back to 1995.
There’s no denying that some areas of organic food and farming are feeling the economic pressure of the times we’re living in, but there’s also a lot of buoyancy in the sector and many farmers who are committed to the long run and reaping the benefits of the way they have opted to manage their land and livestock.
We thought this was a good time to introduce a snippet of video taken at our National Organic Cereals event, held in July at Launceston Farm, Dorset. The panel for the afternoon Q&A session were asked how optimistic they were for the future of organic farming in the UK. Their answers are encouraging.
An international consultant has told me repeatedly that I will never make any money out of organic poultry because of high cost of feed relative to premium available.
that must be doubly true for organic poultry breeders like me–what few there are– when the effect of derogations is taken into account. we have to compete with non-organic breeders with bigger scale and lower prices.
My family say if you are not making any money why do you do it. I think it’s the inertia brought on by stress. But it is making me think at last. What would you advise.
We find that we do not have to charge an ‘organic premium’. Instead we sell our produce for the same price as supermarkets sell conventionally produced food. Organic Premium is a self-defeating concept. Just imagine what would happen to organic sales if our prices were the same as non-organic? We would sweep the floor since there would be no reason to buy non-organic.
Here is how we do it:
1. We sell only directly to end customers, never to any kind of middle men – no markets, no supermarkets, no wholesalers, no retailers. Simple website can advertise your wares either locally of nationally. The best local food website is http://www.BigBarn.co.uk, or just set up one of your own – and it can be free for ever (try http://www.webs.com). Facebook is great for attracting local ‘friends’ to your business who will soon become customers as well.
2. We have lower costs: no fertilisers, no chemicals, no supplements (except rock salt for minerals), much lower vet bills, and grow your own fodder, rather than buying it at high prices. Feed your animals on what you can grow on your own farm.
3. We have near zero energy bills: water, heating, electricity, water heating are all supplied by renewable energy, which costs initially, but than for the next 20-30+ years you have free energy (and you even get paid for some of it via FiTs). It is important to have sensible combinations of technologies, such as Wind and PV (provides electricity every day of the year), solar thermal and wood burner with boiler (provide hot water/ heat every day). The wood is free. Just grow it in your hedges and plant a few small coppicing woods on land unsuitable for farming.
We even produce our own biodiesel at half price of the commercial product. You can either buy waste vegetable oil from wholesalers or grown and press your own to convert to diesel. No engine modifications are necessary in cars, vans or tractors.
The future lies in localisation – serving your own local community with essential farm produce.
Paul
Fieldpower Organics @ Cottage Farm
Sustainable organic carbon neutral farm powered by renewable energy producing organic beef and lamb. London and local deliveries by carbon neutral transport.
Tel: 01840 230 548 Mobile: 079 0529 0530 email: Fieldpower@tiscali.co.uk
Cottage Farm, Jacobstow, Cornwall, EX23 0BU
On-line shop: http://www.CottageFarmOrganics.co.uk or http://www.bigbarn.co.uk/marketplace/vendors/Fieldpower
Information: http://www.TransitionNC.org (Click Food Directory and look up Cottage Farm)
Facebook: http://www.facebook.com/pages/Fieldpower-Organics-at-Cottage-Farm/142171192536789?sk=wall
BBC Food and Farming, sustainable Farmer of the Year finalist
Highly Commended at Cornwall Sustainability Awards
Monthly SuperHome Open Days (www.SuperHomes.org.uk)
Founder member Transition Cornwall and Transition North Cornwall (www.TransitionNC.org) and Powerswitch.org (www.Powerswitch.org)
Speaker at national conferences, House of Commons and local groups on the future of energy, food and farming.