Modeling the relationship between the characteristics of agricultural holdings and the presence of organic farming

Abstract

Organic farming is a fast growing market segment in the global food industry. Ecological and health benefits of organic farming are frequently emphasized. In addition, we have recently witnessed the promotion of its role in the development of rural areas by means of creating jobs and strengthening ties with local economies. This paper analyzes the relationship between the presence of organic farming and the main characteristics of agricultural holdings in the case of European Union countries. The objective is to identify factors which have a significant relationship with the organic farming sector and which can affect its future development. The results have shown that large farms are dominant in farm land management in the EU, which is related to the fact that there is a significant correlation between the availability of agricultural areas and the economic value of farms (r = 0.881**). There is a positive and significant correlation between the economic value of a holding and the number of livestock units on the farm (r = 0.940**), which indicates that animal husbandry has strong economic potential. When it comes to the relationships between the structural and economic indicators of agricultural holdings and the presence of organic farming, the results have shown that the number of organic producers is positively and significantly correlated with the available agricultural areas (r = 0.675**), and a strongly positively correlated with the economic value of farms (r = 0.810**). The areas under organic farming are also directly correlated with the utilized agricultural area (r = 0.836**), as well as with the number of livestock units (r = 0.793**), but they are slightly negatively correlated with livestock density (r = -0.211). Therefore, high livestock density can be a limiting factor for the further intensive growth of organic farming areas, considering the significant impact of animal husbandry on the environment.