Financial performance of organic farms in England and Wales

A survey of farm fi nancial data on 135 organic farms in England and Wales in 2003/04 (as part of an ongoing annual survey) shows that for most farm types, organic farmers achieve similar or higher incomes than similar conventional holdings. Although organic farmers rely on premium prices to compensate for lower yields, overall performance has been maintained despite downward pressure on prices in the period under review. However, all farms, organic and conventional, showed generally poor returns. With organic prices increasing in most areas in 2005, it is likely that signifi cant improvements in performance will result. Key words: Organic farm incomes, output, gross margins, costs of productio