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1995/6 Organic Farm Management Handbook
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We are pleased to announce that the 1995/6 Organic Farm Management Handbook
(2nd edition) edited by Nic Lampkin and Mark Measures is now available from
(and published jointly by) the:
Welsh Institute of Rural Studies
University of Wales, Aberystwyth, Dyfed SY23 3DD
Tel: (01970) 622248 Fax: (01970) 622238
E-mail: nhl@aber.ac.uk
ISSN 1354-3768
Organic Advisory Service, Elm Farm Research Centre
Hamstead Marshall, Nr Newbury, Berkshire RG15 0HR
Tel: (01488) 658298 Fax: (01488) 658503
ISBN 1 872064 18 3
Individual copies: UK £10, Overseas £13 (including postage)
Trade and bulk orders (more than 5 copies): £6 plus postage
Payment should accompany orders for individual copies.
Further information about the publication, including prefaces, foreword by
Prof. John Nix (editor of the Farm Management Pocketbook published by Wye
College), and the contents, follow.
Preface to the first edition (1994)
The idea for an Organic Farm Management Handbook has been several years in
the making, but 1994 seems an opportune moment for it to be realised. The
growth in interest in organic farming throughout Europe, and the
introduction of financial support for organic farming in the United Kingdom
and Ireland in 1994, mean that organic farming is on the brink of a major
new phase in its development. Sound management information will be a key
factor in this, supported by the increasing availability of first-hand data
from MAFF-funded and other research programmes.
We have attempted to compile data from a range of sources to provide best
possible estimates for the physical and financial performance of organic
crop and livestock enterprises. Our initial estimates have been considered
by a panel of experienced organic producers and modified in the light of
their comments. It is inevitable, however, that in a publication of this
type, particularly the first issue, some errors will creep in. As editors,
we must accept full responsibility for these, but we would be grateful for
feedback if calculation errors are noted. We would also welcome feedback on
the content and style of the different sections. We have included a
feedback sheet which can be cut out and returned to us with your comments.
We would like to acknowledge the willingness to assist and helpful comments
received from organic producer members of British Organic Farmers/Organic
Growers Association, as well as other producers and researchers who
commented on the initial drafts of this handbook. We owe a big debt to the
researcher/contributors Tony Pike, Hugh Bulson, and Christopher Stopes who
did much of the ferreting around for information on the earlier versions of
the handbook. Thanks are also due to Susanne Padel for advice and comments
on the technical content. Finally, we acknowledge financial support from
the EC for the collection of financial data under research contract AIR
3-CT92-0776.
Nic Lampkin
Lecturer in Agricultural Economics, Department of Agricultural Sciences,
University of Wales
Mark Measures
Senior Advisor, Organic Advisory Service, Elm Farm Research Centre, Newbury
July 1994
Preface to the second edition (1995/6)
In the 12 months since the first edition was published, there have been a
great number of developments affecting the organic sector in the UK. The
rules and payment rates for arable area and livestock premium payments have
changed significantly. The support programmes for organic farming under the
European Union's agri-environment programme are finally operational. New
markets for organic produce are opening up, including opportunities for
vegetables through expanded box schemes and processing for baby foods, for
milk through new co-operative marketing and processing ventures, and for
meat and cereals through new export opportunities to countries such as
Denmark where consumer demand has increased dramatically.
There has also been substantial change in the organic sector elsewhere in
Europe. The most dramatic change has been in Austria where organic farming
is expanding at more than 100% annually and now accounts for nearly 10% of
land use, with more than 23,000 farmers managing 335,000 hectares
organically in 1995. Organic farming in the European Union continues to
grow at an average 35% per year, with 48,000 farms and 1 million hectares
certified organic or in conversion in 1995. The expansion in supply is
making it possible for more companies to consider using organic ingredients
for their mainstream brands, allowing organic food to emerge from its
traditional niche market image.
In this edition, we have responded to comments received, and have simplified
the presentation of many of the gross margins. We have included some new
data relating to pigs and poultry, although these are based on very limited
data and need to be treated with caution. We have introduced new sections
highlighting market developments and changes to organic production standards
over the last year. Lastly, we have included an index to make finding
information easier.
We hope that readers will find the new information of use and that this
edition will be as successful as the first. Any comments would be very
welcome, as would more producer participation in the annual consultative
panel and monthly price survey (see response sheet on the next page).
As last year, our thanks are due to all the researchers, contributors, and
producers who have helped with the production of this handbook. We are also
very grateful to Professor John Nix for his foreword and for permission to
extract data from his Farm Management Pocketbook for the Fixed Costs Section
of this Handbook.
Nic Lampkin and Mark Measures
September 1995
Foreword by Professor John Nix
For some years now organic farming has "come of age", in the sense that most
thinking people in agriculture accept it as being a serious alternative to
"conventional" farming. It was not always so. Indeed the present writer
can recall that he himself, not all that long ago, was one of those
describing it as "muck and mystery" - though he now admits to feeling rather
ashamed of having done so.
The reasons for this change of attitude are not hard to find. It is not to
do with many farmers and growers being absolutely dedicated to the system,
virtually as an act of faith. This has long been the case, though certainly
the numbers have been substantially increasing in relatively recent years.
Worries concerning the environment and health effects of agrochemicals are
shared by many people, whether or not they are scientifically valid. Many
consider the wasteful cost of providing surpluses that are apparently
incapable of being distributed to the millions of undernourished people in
this world to be nonsensical. These surpluses cost a great deal to store
and to dump (let us admit it) on the world markets; and the latter distorts
international trade and creates animosity between nations. Then there is
the most positive point. There is an increasing demand for organic
products, owing mainly to health concerns (again, whether or not these are
valid) and this demand is being met largely by imported produce.
The economics of organic versus conventional farming can be argued to and
fro: lower yields and variable cost being offset by premium prices, etc.
Certainly, though, there is no point in pro-organic farmers overstating
their case. If it were definitely more profitable there would be many more
farmers taking it up. It has to be accepted that the conversion period is a
serious problem financially. It has required a new subsidy to attempt to
overcome this difficulty and persuade more farmers to take up the system.
The introduction of this subsidy proves the Government's acceptance that the
system has advantages to the nation.
A major difficulty has been a lack of research into organic farming and of
data specific to it. This handbook goes a considerable way to overcoming
the latter. It is packed with relevant, practical information on organic
production, based on widespread research and survey data, prepared by people
long steeped in the subject. As the author of the long-standing Farm
Management Pocketbook I applaud it. I introduced a measly two pages in my
18th edition, seven years ago. I have known ever since that I should expand
it, but I baulked at the thought that it could end up a very long section,
and anyway I did not have the data. Now I do not have to worry. In my
latest edition I have simply referred all those interested to obtain a copy
of the present, excellent specialist publication.
John Nix
December 1994
Contents
Section 1 Introduction 1
Why an Organic Farm Management Handbook? 1
What is organic farming? 3
The nature of the organic farm business 4
Gross margins and organic farming systems 6
Section 2 Marketing 8
Marketing and the organic premium 8
Market outlets 9
Market developments in 1994/5 10
Organic food promotional events 12
Marketing and processing grants 13
Section 3 Certification 15
Organic farming production standards and legislation 15
Developments in 1994/5 16
UK Register of Organic Food Standards 18
Soil Association Organic Marketing Co. Ltd. 19
Organic Farmers and Growers Ltd. 20
Bio-dynamic Agricultural Association (Demeter) 21
Scottish Organic Producers Association Ltd. 22
Irish Organic Farmers and Growers Association 23
International Federation of Organic Agriculture Movements 23
Section 4 Converting to Organic Farming 24
The conversion process 24
Conversion costs 27
Conversion planning 29
UK Organic Aid Scheme 30
Republic of Ireland organic farming and conversion support scheme 32
Section 5 Crop Production 33
Crop husbandry principles 33
Permitted input costs 35
Crop production subsidies 38
Section 6 Arable Crop Gross Margins 44
General information 44
Wheat 46
Barley 48
Oats 50
Rye 52
Triticale 52
Beans 54
Section 7 Field-scale Vegetable and Horticulture Gross Margins 57
General 57
Prices and marketing costs 59
Potatoes 62
Carrots and parsnips 64
Beetroots and swedes 66
Leeks 68
Onions 70
Brassicas 72
Broad beans 76
Raspberries 78
Strawberries 80
Coldhouse cucumbers and tomatoes 82
Section 8 Forage Crops and Green Manures 84
Forage/catch crops 84
Green manures/cover crops 86
Undersown forage 88
Grassland 88
Forage row crops 91
Section 9 Livestock Production 93
Organic livestock husbandry 93
Livestock feed nutritional values and prices 98
Section 10 Livestock Gross Margins 100
Milk production 100
Beef production 104
Sheep production 108
Pig production 111
Poultry production 114
Section 11 Whole Farm Gross Margins 115
Whole farm output, variable costs and gross margins 115
Arable systems 116
Dairy systems 118
Beef/sheep systems 120
Specialist horticultural systems 122
Section 12 Fixed Costs 123
Land 123
Labour and machinery costs 123
Manure handling and storage 128
Buildings and other capital assets 130
Section 13 Environmental Management 132
Environmental management and organic farming 132
Hedges, woodland and forestry 133
Landscape and nature conservation schemes 135
Agri-environment programme 138
Rural Environment Protection Scheme (Republic of Ireland) 141
Environmental advice and further information 141
Section 14 Sources of Further Information 142
Events 142
Publications 143
Organic Advisory Service (Elm Farm Research Centre) 144
Centre for Organic Husbandry and Agroecology (Aberystwyth) 145
Section 15 Addresses 146
Section 16 Index 150
Nic Lampkin
Welsh Institute of Rural Studies
Stapledon Building, Penglais Campus
University of Wales, Aberystwyth
GB-Dyfed SY23 3DD.
Tel: +44 (0)1970 622248
Fax: +44 (0)1970 622238