Estimating organic farms’ marketability from limited data – evidence from Poland

Abstract

Purpose: In 2019, the European Commission made organic farming one of its Green Deal's key elements. However, in order to develop, this sector requires a support system based on reliable data. This is difficult in countries where agricultural record-keeping is not obligatory - especially for small and medium-sized farms, the main organic producers. To meet this challenge, it seems necessary to develop a method of estimating organic farms' marketability potential. Design/Methodology/Approach: In its first part, the article describes the adaptation of the method commonly used (under Farm Accountancy Data Network) in farms that keep agricultural accounting records to the specific conditions of farms that do not. In the second part, the proposed proprietary method was verified by a sample of 2,576 organic farms from the Podlasie region in Poland. Findings: The rules and practices traditionally used for EU agricultural accountancy may constitute a significant contribution to developing a universal method of estimating the marketability potential of organic farms, which is especially important for countries where agricultural accounting record-keeping is not obligatory. Practical Implications: The proposed approach may contribute to better planning of support for organic farms under the CAP, and, consequently, to complete implementation of the objectives set out by the European Commission in the Agricultural Green Deal. Originality/Value: The article presents an innovative and practical way of determining the specialization and marketability level of organic farms that do not keep agricultural accounting records.