Economic and Financial Comparison between Organic and Conventional Farming in Sicilian Lemon Orchards

Sgroi, Filippo; Candela, Matteo; Trapani, Anna Maria Di; Foderà, Mario; Squatrito, Riccardo; Testa, Riccardo; Tudisca, Salvatore

doi:10.3390/su7010947

Cited by 54 publications

(35 citation statements)

References 70 publications

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“…In our study, fertilizer costs for EFF per ha were higher than for other farming techniques. This finding is inconsistent with the result of Sgroi et al [59], who found that CF had higher fertilizer costs when compared to organic one. The reason for the higher fertilizer costs in this area might be caused by the use of low quality organic fertilizer, which led not only to less crop production but also caused higher costs.…”

Section: Cost and Benefits Of The Three Farming Techniquescontrasting

confidence: 57%

Conventional, Partially Converted and Environmentally Friendly Farming in South Korea: Profitability and Factors Affecting Farmers’ Choice

et al. 2016

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While organic farming is well established in Europe a nd USA, it is still catching up in Asian countries. The government of South Korea has implemented environmentally friendly farming that encompasses organic farming. Despite the promotion of environmentally friendly farming, it still has a low share in South Korea and partially converted farming has emerged in some districts of South Korea. However, the partially converted farming has not yet been investigated by the government. Thus, our study implemented a financial analysis to compare the annual costs and net returns of conventional, partially converted and environmentally friendly farming in Gangwon Province. The result showed that environmentally friendly farming was more profitable with respect to farm net returns. To find out the factors affecting the adoption of environmentally friendly farming, multinomial logistic regression was implemented. The findings revealed that education and subsidy positively and significantly influenced the probability of farmers' choice on partially converted and environmentally friendly farming. Farm size had a negative and significant relationship with only environmentally friendly farming. This study will contribute to future policy establishment for sustainable agriculture as recommended by improving the quality of fertilizers, suggesting the additional investigation associated with partially converted farmers.

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Section: Cost and Benefits Of The Three Farming Techniquescontrasting

confidence: 57%

Conventional, Partially Converted and Environmentally Friendly Farming in South Korea: Profitability and Factors Affecting Farmers’ Choice

et al. 2016

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“…However, in the study of Acs et al (2007), the effect of higher prices was mitigated by the lower yields and by the higher variable costs (in particular, labour costs). A better profitability of organic farms was also found by Sgroi et al (2015b). These authors studied farms growing lemon orchards.…”

Section: Discussionmentioning

confidence: 75%

Measuring technical efficiency of Thai rubber production using the three-stage data envelopment analysis

Parichatnon¹,

Maichum²,

Peng³

2018

AGR ECON-CZECH

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Krause J., Machek O. (2018): A comparative analysis of organic and conventional farmers in the Czech Republic. Agric. Econ. -Czech, 64: 1-8. Abstract:Organic farming has become a topic that receives an increasing academic as well as popular attention. Th is study examines the fi nancial diff erences between the organic and conventional farmers, as well as their income volatility. Based on the Student's t-test, the regression analysis and the matched-pair investigation on a sample of Czech 291 organic and 4045 conventional farmers over the period 2009-2013, the study indicates that the organic agricultural companies outperform the conventional companies in the terms of profi tability. However, their asset turnover is considerably lower. No evidence of diff erent income volatility has been found.

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“…The joint application of the economic and financial approach for the assessment of affordability and sustainability management can also give significantly different results between the two approaches, as demonstrated for other sectors by several studies (Greenberg et al, 1986;Kwon, 1989;Dechow, 1994;Russell, 2009;Iotti and Bonazzi, 2014b;Sgroi et al, 2015). This situation occurs particularly in SMEs characterized by absorption of working capital (Glancey, 1998;Kieschnick et al, 2008).…”

Section: Introductionmentioning

confidence: 98%

Profitability and Financial Sustainability Analysis in Italian Aquaculture Firms by Application of Economic and Financial Margins

Iotti¹,

Bonazzi²

2015

American Journal of Agricultural and Biological Sciences

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Agricultural Firms operating in the aquaculture sector in Italy are often characterized by high investment and high capital intensity. In fact, these companies need to develop structures and breeding systems to generate adequate cash flow to repay their investment in fixed assets. In addition, the biological cycle of breeding further extends the need for capital, in this case to finance working capital. There is therefore often a mismatch between the economic and financial cycles, wherein profit margins may differ from financial margins. In this way, such companies have an economic advantage but no sustainable financial cycle. In these cases, several crisis may force companies to default, especially when firns are unable to cover debt repayment. This difficulty is particularly present in Italy, where aquaculture firms are often Small and Medium Enterprises (SMEs) and therefore have greater difficulty than large companies accessing the capital market. Our research evaluates the cost effectiveness and financial sustainability of a sample of forty firms operating in the aquaculture sector in Italy, within a timespan of five years, through comparative analysis of the economic and financial margins. The analysis shows that such firms are capital intensive (TA/VP of median value is 1.16%). Financial debt emerges as the first source of capital then increasing companies' financial dependence through credit systems and borrowing costs. Firms have a particular absorption in the NWC cycle, with I_DAYS being 143.29 days, AR_DAYS being 72.75 and 145.51 AP_DAYS expressing financial operating cycle (I_DAYS + AR_DAYS -AP_DAYS) with a length of 70.53 days. Profit margins, even if they are correlated with financial margins, are lower on average. The research highlights that economic model worst explains FCFE (F = 0.011 and adjusted R 2 = 0.803), while the financial model best explains FCFE (F = 0.000 and adjusted R 2 = 0.922). Our research will be further developed through analyzing cooperatives, unincorporated partnerships and sole proprietorships. It may also be useful to undertake a comparative analysis of aquaculture firms operating in other countries of the Mediterranean basin.

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Economic and Financial Comparison between Organic and Conventional Farming in Sicilian Lemon Orchards

Cited by 54 publications

References 70 publications

Conventional, Partially Converted and Environmentally Friendly Farming in South Korea: Profitability and Factors Affecting Farmers’ Choice

Conventional, Partially Converted and Environmentally Friendly Farming in South Korea: Profitability and Factors Affecting Farmers’ Choice

Measuring technical efficiency of Thai rubber production using the three-stage data envelopment analysis

Profitability and Financial Sustainability Analysis in Italian Aquaculture Firms by Application of Economic and Financial Margins

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