Management Theory and Studies for Rural Business and Infrastructure Development, Volume 15

Inducement of sustainable development by supporting organic farms

Edmundas Jasinskas, Zenonas Kazakevičius

Abstract

State‘s support would be more efficient if businessmen were induced to get involved in
such a business, which does not create the external negative costs.
Aim of the article – to evaluate state‘s support for organic farming and to propose the possibilities
of improvement of organic farming inducement.
Object of the article – state‘s support for the farmers‘ farms.
Methods used: analysis of scientific literature, method of descriptive statistics analysis.
In the article it was ascertained that organic farming without a support would be lossmaking
and only due to the support the profit is obtained. After the evaluation of the fact, that organic
farms obtain significantly higher profit including also manufacture subsidies from a hectare,
than ordinary farms, it may be claimed that the subsidies for the organic farming might be reduced,
meanwhile focusing more on the other economic lever – taxes. The other aspect is that the market
itself would give the higher price for the organic production if ecological certificates were far more
acknowledged by the society.

Keyword(s): organic farming, subsidies, profit, support, development, farmer farm


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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.