The economic situation of organic farms (in relation to conventional farms) in Poland

The specificity of agricultural production is determined primarily by close relation to the natural environment. Policy measures for organic farming is implemented in order to increase environmental awareness and promote environmentally friendly agricultural production methods. After Poland's accession to the EU the number of organic farms in our country has grown over 11-fold. When analyzing the effectiveness of agricultural policy it is essential to assess the economic situation of organic farms in Poland. In order to analyze the economic position of analyzed farms, reference was made to the situation of conventional farms. A comparative analysis of organic and conventional farms shown that organic farms generated lower revenue than conventional farms. The results show that functioning of organic agriculture in Poland is closely linked to additional subsidies for organic farming and it is stimulated by CAP support. Organic production is strongly dependent on the system of additional payments provided by the agricultural policy.