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Economic analysis of experimental organic agricultural systems on a highly eroded soil of the Georgia Piedmont, USA

Published online by Cambridge University Press:  12 July 2010

K.L. Jacobsen*
Affiliation:
Department of Horticulture, University of Kentucky, N-318 Agricultural Sciences North, Lexington, KY40546, USA.
C.L. Escalante
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, 301 Conner Hall, Athens, GA30602, USA.
C.F. Jordan
Affiliation:
Odum School of Ecology, Ecology Building, University of Georgia, Athens, GA, 30602, USA.
*
*Corresponding author: krista.jacobsen@uky.edu
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Abstract

Information about the costs and labor requirements of experimental organic farming systems designed to restore highly degraded soils in the southeastern US are needed. Enterprise budgets were prepared for the production of okra, hot pepper and a corn/winter squash intercrop under 10 different production systems, nine of which were based on organic conservation tillage. A stochastic dominance analysis was conducted to determine the relative risk efficiency of the 10 systems over the course of the experiment in terms of productivity, profitability and carbon sequestration potential. Organic conservation tillage treatments had lower tractor labor and fuel costs than conventional treatments, due to the extensive tillage required in conventional vegetable farming. The subset of organic treatments receiving compost addition without additional mulches also demonstrated increases in soil carbon, an important driver of system productivity. Organic treatments had little pest and pathogen pressure, with the exception of Fusarium wilt in some treatments receiving straw mulch. Weed suppression by straw mulches reduced labor requirements by an average of 23%. Yields in all treatments were lower than conventional yields from other studies in the region, due to the degraded nature of the soil on the study site. However, net returns on high-labor, organic crops were over US$30,000 ha−1 in some treatments. The results of this work indicate that organic, conservation tillage systems can restore soil productivity and command high returns per hectare if labor requirements can be met.

Information

Type
Research Papers
Copyright
Copyright © Cambridge University Press 2010
Figure 0

Table 1. General management timeline for the ten treatments in the field study. For a complete management description, see Jacobsen and Jordan12.

Figure 1

Table 2. Fixed costs for a 40 ha (100 acre) farm. Total fixed farm costs per hectare are calculated for 4 ha (10 acres) in production.

Figure 2

Table 3. Production input costs for a 3-year vegetable crop rotation in alley cropping (AC), organic strip-tillage (OST) and conventionally tilled cropping systems. Input quantities and prices are calculated on a per hectare basis.

Figure 3

Table 4. Fuel costs for tractor and irrigation operations for each cropping system.

Figure 4

Table 5. General operations labor, hours per hectare, expressed as mean values from 2005 to 2007.

Figure 5

Table 6. Enterprise budget for okra, grown in degraded soil in Georgia Piedmont.

Figure 6

Table 7. Enterprise budget for hot pepper, grown in degraded soil in Georgia Piedmont.

Figure 7

Table 8. Enterprise budget for corn and winter squash intercrop grown in degraded soil in Georgia Piedmont.

Figure 8

Table 9. Changes in total soil carbon levels over the course of the accompanying field study. For complete discussion and presentation of results, see Jacobsen and Jordan12.

Figure 9

Table 10. Derivation of net return per hour of family labor. Derivations were based on raw data from individual plots across the three crops (okra, hot pepper and corn/winter squash intercrop) grown in the study. Variation reflects differences in labor requirements and net returns between the three enterprises.

Figure 10

Table 11. Stochastic dominance results based on production yields, revenues and changes in soil carbon levels. Rankings are expressed from low to high, where 1 is the most dominant (preferable) and 10 is the least.