ECONOMICS OF ORGANIC FARMING: COST–BENEFIT ANALYSIS OF SUSTAINABLE AGRICULTURE PRACTICES

Abstract

This study empirically examines the economic viability of organic farming in India through a cost–benefit framework and econometric analysis using farm-level survey data. Based on primary data collected from organic and conventional farmers across selected districts, the paper compares cost structures, yields, net returns, and sustainability outcomes. A multiple regression model is employed to estimate the impact of organic practices on farm income while controlling for socio-economic and institutional factors. The results indicate that although organic farming entails higher labor costs and transitional yield reductions, it generates higher net returns in the long run due to lower input costs, price premiums, and improved soil productivity. The findings support the argument that organic farming is economically viable when supported by market access, institutional support, and policy incentives.

Keywords: Organic farming, Cost–benefit analysis, Regression analysis, Sustainable agriculture, India.