Modelling farm-level economic potential for conversion to organic farming

This paper discusses linear programming simulations at individual farm-level of potential income changes that may result from conversion to organic farming. The model is based on both conventional farm accountancy data and additional conventional and organic farm data from sector expertise and literature. The model is applied for Belgian agriculture. Simulations show that economic potential for conversion is higher than generally perceived, provided that farmers are willing to change farm management practices. However, the economic conversion potential (ECP) is not positive for all farms, not even when an optimal conversion process is assumed and it depends on farm type and farm characteristics. Additionally, due to higher risk and liquidity problems during the transition period, the positive results need to be put into perspective. Nevertheless, the differentiated ECP calculations can give new insights supporting farm-level policy choices with respect to conversion to organic farming.