Management Theory and Studies for Rural Business and Infrastructure Development, Volume 38, Number 3

Simulation of organic farming development

Aiste Galnaitytė, Irena Kriščiukaitienė

Abstract

A new United Nations sustainable development Agenda underlines the relevance of Organic farming development. In the same line the Government of the Republic of Lithuania seeks to create economically efficient and competitive agriculture, based on low environmental impact farming, to develop organic farming and high quality certified agricultural and food production, conserve natural resources. Transition to the sustainable agricultural development faces the main difficulty, which is formulated as a scientific problem: how to reconcile the economic and political interests? This research is carried out by the purpose to offer alternative possibilities for organic farming development. The research was carried out using mathematical programming model and scenario analysis. Model is formulated as a linear mathematical programming optimization model, consisting of objective function, constraints, expressed as inequalities and fulfilling non-negative values conditions. The model includes existing and results provide the maximum gross value added ensuring crop production structure, taking in to account farming practices applied in Lithuania: conventional, organic, organic in conversion and integrated. The analysis of three scenarios has shown that the majority of compensatory payments and prices of organic production (2013) are insufficient to increase organic crop area to the extent of 10 percent of total agricultural land in Lithuania by 2020: only by one third (31 percent) higher organic production prices, lead to reached 10.5 percent of organic crop area from the total agricultural land. The research results provide scientifically based knowledge to the policy makers about the impact of the policy measure “Organic farming” on the development of organic farming.

JEL Codes: C61, Q15, Q18.

Keyword(s): impact assessment, mathematical programming, organic farming


Full Text: PDF

Refbacks

  • There are currently no refbacks.
774 views

Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.