Farm management and economic effects of organic intensive livestock farming

The objective of the contribution presented is to evaluate a widespread adoption of organic livestock farming in the region Mostviertel-Eisenwurzen from a farm management and economic point of view. The comparison between conventional and organic production is based on Linear Programming (LP) Models drawn up for seven different farms (farm types fattening pig, breeding pig, fattening & breeding pig, each of it with a model for extensive and intensive fanning, one model for the farm type fattening cattle). The results of the LP-Models show differences in marginal income and the marginal income less additional costs caused by conversion to organic fanning like investments, inspection fee etc. Based on the LP-Models, the potential emissions of greenhouse gases of each farm model are quantified. In a next step, the external costs of different farming systems are assessed by linking the emissions to cost factors. In the case of premium prices for organic produce, marginal incomes are as a rule higher in the organic pig farms. Contrary, marginal income is lower in the fattening cattle farm. When assuming conventional prices, marginal incomes decrease sharply in organic farming. The aggregation of the findings for the single farm models to the regional level shows a reduction in external costs under organic cultivation which is due mainly to the avoidance on N fertilizers and a lower input of bought in concentrates.