Conversion to organic farming: Does it change the economic and environmental performance of fruit farms?

Abstract

This paper compares the performance of conventional and organic fruit farms in Spain, using a set of base indicators to assess their economic and environmental performance on a per hectare basis. Composite indicators are also calculated to measure the overall economic and environmental performance of both production systems. Comparisons are made using propensity score matching to minimize the non-randomization biases caused by structural differences between the samples of conventional (n = 552) and organic (n = 127) fruit farms sourced from the Spanish Farm Accountancy Data Network (RECAN). The results based on per hectare metrics point to modest changes in the performance of farms that converted to organic farming. This is mainly because most converted farms were former conventional farms characterized by lower profitability and less intensive input use, consequently minimizing the effects of the conversion process. Nevertheless, the conversion outcomes exhibit a degree of variability depending on the specific type of fruit production. Economic gains are only discernible in the case of nut farms, whereas fruit and tropical fruit farms tend to yield the most favorable results per hectare from an environmental perspective.