Cost of conversion

All of the above will have an effect on the financial arrangements of the farm, both income and outgoings.

Yields are the single most important factor affecting viability. Yield predictions are generally pessimistic; if a reasonable level of management and good husbandry is applied, yields can remain quite good during and after conversion. Some crops are harder to move in organic markets and do not receive high premiums. Meat markets for instance, are still relatively poorly developed and require the entry of more abattoirs, retailers and/or distributors and exporters. This situation is now improving and meat markets are currently one of the fastest growing categories of organic produce.

As in all farming, compromises may be required between the best enterprise for the sustainability of the farm and the need for returns. A complete change of enterprise is sometimes required, and very often small adaptations, such as new varieties better suited to organic methods, or different planting times and distances, is called for. This is sometimes the most costly aspect of conversion, as it implies capital expenditure, such as new equipment.

Typical equipment change would include acquisition of non-inversion tillage gear, or weed management tools such as rod weeders, flame weeders and brush hoes.

Longer and more sustainable rotations can also have a major cost impact. For instance the most profitable crops (such as wheat) may be grown less frequently, or in smaller areas, in order to integrate soil-rejuvenating crops or a longer pasture phase.

TM Organics can help you with this process. For further information about how we can help you visit our consulting services section of this website.