-A project for MTSA Course /
Prashast Srivastava; Prateek Shah /
Table of Contents
Design of a Hi-Tech organic farm
PART I: Key principles
What is an organic agriculture?
The Indian Scenario
Sustainable: A comparison
Economic Aspects
Macroeconomic Picture
Ecological Benefits
Social Benefits
Nutrient Budgeting
Size of land-holding
Conclusion
PARTII: The design
Design of Organic Farms: Guidelines
Design of Organic Farm: Schematic
Design of Organic Farm: Preparation
Legumes
Mulch
Harvesting
Design of Organic Farm: Crop Rotation
Crop Rotation Planning: Lessons from United States
Design of an Organic Farm: The Crop Cycle
Lessons from Greenhouse in China
Conclusion
Works Cited
Design of a Hi-Tech organic farm
PART I: Key principles
What is an organic agriculture?
While the definition and scope could vary depending upon the variation in geography and climate, the broad guidelines to interpret what constitutes organic agriculture can be built from the following key attributes of Organic Agriculture.
“Organic agriculture is a holistic production management system that –
Promotes and enhances agro-ecosystem health, including biodiversity, biological cycles and soil biological activity
Emphasizes use of management practices in preference to the use of off-farm inputs
Taking into account that regional conditions require locally adapted systems.” ( FAO)
In other words, an organic farm requires minimum or no chemical inputs in form of fertilizers and pesticides. Nutrient level is generally managed by using organic waste and appropriate planning of crop rotation. Pesticides and other control chemicals are replaced by using natural sources.
The Indian Scenario
As per FAO, India had about 1426 certified organic farms which produced close to 14000 tons of organic food in 2003. As per the estimates of Government of India, about 190000 acres of land was under organic cultivation in 2005 (satavic.org).
A comparison with some other countries has been shown below (Narayanan, 2005) –
The lower significance of India vis-à-vis global leaders is clear in this chart. Thus, it can be concluded that as far as India is concerned, organic farming is relatively a new concept. There is still a substantial gap before we can catch up with the global leaders.
Sustainable agriculture is sometimes, erroneously though, confused with organic farming. While sustainability is an important attribute for organic farming.
FAO defined sustainable agriculture on the basis of these basic guidelines (Sustainable Agriculture Information Network) –
“It ensures that the basic nutritional requirements of present and future generations, qualitatively and quantitatively, are met while providing a number of other agricultural products
Provides durable employment, sufficient income, and decent living and working conditions for all those engaged in agricultural production
Maintains, and wherever possible, enhances the productivity capacity of the natural resources base as a whole, and the regenerative capacity of renewable resources, without disrupting the functioning of basic ecological cycles and natural balances, destroying the socio-cultural attributes of rural communities, or causing contamination of the environment, and
Reduces the vulnerability of the agricultural sector to adverse natural and socio-economic factors and other risks, and strengthens self-reliance”
So, while sustainable agriculture ensures nutritional value in crops and farming, it also encompasses a wider set of guidelines which ensure better natural conditions like water management, labor practices and future impact of the activities being undertaken.
While it can be seen that there are a several aspects common between sustainable agriculture and organic farming, there is more of a cause-effect relationship. Organic farming implemented successfully could ensure sustainable agriculture.
Typical design of organic farm involves several critical decisions. The figure below summarizes the chronological order in which these decisions need to be taken.
Sustainable: A comparison
Economic viability is the guiding principle for key decisions related to farming practices and methodologies chosen. Other benefits include ecological and social viability, primarily because of multiple positive externalities involved while implementing sustainable practices.
Economic Aspects
The figure below summarizes the key factors which govern the economic benefits from implementing sustainable methods for agriculture.
While it is clear that the economic impact, at least in the short term, deemphasizes use of sustainable methods. However, only monetized benefits have been listed above. The stress on ecological stability might help in commanding a price premium over regularly produced crops.
The above hypothesis can be validated by actual data of various cost models developed. We now summarize a few cost-benefit analyses for different scenarios.
Paddy
Cost Benefit for paddy crop (Charyulu & Biswas, 2010)
OF- Organic Farming, CF- Conventional Farming, CF=100 baseline for comparison, all figures in Rs. Per acre
The above comparison was done for Uttar Pradesh paddy cultivation. The primary cost escalation occurs due to a reduction in yield and price for organic farming. Weeding and marketing costs are substantially higher, while the major savings occur in price of fodder produced. The net revenues are higher (100:78) for conventional farming, primarily because of higher yield.
As far as profitability is concerned total revenues occur in proportion 100:78 (CF:OF) while the cost of production is in the ratio 100:108 (CF:OF). This gives a substantially low relative net return, 100:67 (CF: OF). Hence, as far as paddy cultivation is concerned, economic viability is not inferred in short run.
Sugarcane
Cost Benefit for Sugarcane crop (Charyulu & Biswas, 2010)
OF- Organic Farming, CF- Conventional Farming, CF=100 baseline for comparison, all figures in Rs. Per acre
For sugarcane, the yield increases in short term. This has been reflected in the net returns per acre for the crop. The major source of increased revenue is increase in yield, which offsets the lower price offered to the organic food in the said situation. The cost savings chiefly comes from reduction in spending on pesticides and other protective chemicals from weeds and insects. Seed and land preparation costs are also lower.
Cost of production is lower for organic farming, 100:86, (CF: OF), while revenues are higher for OF, 100:109 (CF: OF). This translates into higher return for organic farming – 100:119 (CF: OF). The study, based in Uttar Pradesh, thus, indicates that organic cultivation of sugarcane could be profitable in short-run.
Wheat
Cost Benefit for Wheat (Charyulu & Biswas, 2010)
OF- Organic Farming, CF- Conventional Farming, CF=100 baseline for comparison, all figures in Rs. Per acre
A similar analysis for wheat indicates that while the cost of production is slightly higher, revenues are substantially higher. This is primarily because a higher price per kg which organic wheat fetched in Uttar Pradesh, where the study was conducted. Hence, the overall revenues earned by wheat cultivation was in the ratio 100:115(CF:OF) while the cost for production was higher for organic farming 100:102. (CF:OF)
The above analysis is done for the short-term only. However, it has been hypothesized that the benefits in terms of yield and production of conventional farming are offset in the long run. This has been a driver for adoption of organic farming.
Long term analysis of yield and production
Year No. / Cost of Chemicals (Rs/ha) / Cattle Manure (t/ha) / Yield wheat (t/ha) / Yield Rice (t/ha)0 / 1994–95 / 3000 / 3 / 2 / 2.25
1 / 1995–96 / 1632 / 4.2 / 1.35 / 1.13
2 / 1996–97 / 788 / 25 / 1.23 / 1.15
3 / 1997–98 / 0 / 50 / 2.25 / 2.5
4 / 1998–99 / 0 / 25 / 2.75 / 3.13
… / … / … / … / …
10 / 2004–05 / 0 / 12.5 / 3.13 / 3.75
The above analysis is for a farm in Uttarakhand for wheat cultivation (Sustainable Agriculture Information Network).
There are three key parameters which we analyzed.
Consumption of chemicals – Organic farming requires a lower use of chemicals in the farms. Therefore, the cost of chemicals used in the farm had a steep decline eventually reaching zero.
Cattle Manure: Initial withdrawal of chemical compounds necessitated the use of cattle manure and was responsible for its increasing use. However, in the long run, the use of cattle manure was reduced which would have reflected in the cost incurred for fertilization.
Yield for wheat and rice: A major argument given against organic farming is the yield. The above case study clearly shows that while the yield is lower in its initial years, it matches the figure for conventional farming within three years and improves further as the soil becomes more fertile. Therefore, in the long-run, from the productivity perspective, it is better to focus on organic farming than conventional farming.
Macroeconomic Picture
The above analysis dealt at the farm level with various scenarios. However, important parameters, monetary value of which can be estimated, are relevant only on macro scale. We now discuss a few such parameters which play a crucial role in determining whether the focus should be on local markets or exports as far as policy formulation for organic produce is concerned.
Hidden Costs: Exporting of goods normally entails higher costs which are generally overlooked. The cost of transportation to the export hub (nearest rail link or ports) is substantial especially because the farms are generally located in rural areas where transport connectivity is inferior to the urban areas.
Food Security: Provision for food security is an important concern. Currently, subsidized rates are being offered to the poor. However, to ensure supply, it is important that the produce remain focused on local markets as their key driver instead of focusing on export to foreign countries.
Debt: Conventional farming involved investment in fertilizers and weedicides. This resulted in huge debts to the farmers. Encouraging organic farming could help in resolving this issue.
Risk: Dependence on foreign markets could be a risky proposition. It is difficult to analyze the demand in the foreign market. This is due to various other factors including the policy of the foreign government, which are not necessarily concerned with interest of Indian farmers. Therefore, if the demand is dependent on export, it could face a volatility which might be difficult to tackle. On the other hand, local market is easier to predict and forms a stable demand. Any surplus, of course, could be used for exports.
Niche Domestic Markets: Domestically, there could be segments which are willing to pay a higher price for organic produce. These could be explored by extensive market research. Also, as the awareness of the organic products increases, the demand would increase. Hence, there could be an opportunity in Indian domestic markets which would drive the demand in future as the awareness spreads.
Employment: Employment has been a major problem in the country. This is more critical in rural areas, resulting in exodus of unemployed youth from village to cities, creating migrant problem in urban areas. Conventional farming essentially results in lesser employment due to extensive use of machinery than organic farming. Therefore, promotion of organic farming could result in higher employment in rural areas.
It is clear that organic farming has advantages over conventional one. This is more prominent when local markets are encouraged to be a demand centre for organic produce.
While we have discussed the possible monetized benefits out of organic farming, there are several benefits which are difficult to quantify. These can be divided into two broad categories – ecological and social benefits.
Ecological Benefits
(Sustainable Agriculture Information Network)
Soil: Lack of fertilizers and other chemical in the farms ensures that the nutrient and other essential minerals present in the soil. Organic farms do not necessitate the usage of these harmful chemicals and hence, the soil remains more fertile than the conventional farming.
.Water: Water table has become a major issue due to over exploitation of the natural resources. The receding water table poses a challenge to figure out alternative methods of conserving water and irrigation. Organic farming helps in improving water retention capacity of soil thereby, reducing the need for irrigation. Coupled with rainwater conservation, it can eliminate the need of external sources altogether.
Biodiversity: An essential feature of a healthy farm lies in biodiversity. An indiscriminate use of pesticides can result in elimination of helpful animals. Switching to organic agriculture eliminates the risk of these unwanted consequences.
Pollution: A key difference between organic and conventional farming is the pesticides used. In addition to above mentioned disadvantages, use of pesticides is a major cause of pollution and can result in potentially fatal diseases. Organic agriculture focuses on natural methods of elimination of pests, weeds and insects. Thus, it does not cause any pollution. On contrary, the excessive chemicals are generally unwanted and hence, are a major source of pollution.
Landscape: Top soil erosion is responsible for multiple natural calamities. Erosion of top soil increases the risk of landslides. In certain regions, top soil plays an important role in controlling of flood by absorbing excessive water. Excessive cultivation erodes the topsoil thereby increasing these risks. Organic agriculture, on the other hand, conserves top soil and thus reduces the risk of the said natural calamities.
Pollution: Traditional farming is generally associated with Green house Gas emissions. Carbon sequestration by the soil is also reduced in conventional farming. Therefore, emission of methane is higher in case of conventional farming than the organic farming. Carbon footprint also increases for conventional farming due to excessive use of machinery. Organic farming reduces the risk of excessive carbon footprint and hence, can be encouraged for alleviating the impact of global climate change due to GHG emissions.
Social Benefits
(Sustainable Agriculture Information Network)
Social benefits of organic farming are generally non-quantifiable. We now list the social benefits which can be derived from organic farming.
Inclusiveness: Rural urban divide has been a major problem. Stress on organic farming can reduce the disparity between the living standards in rural and urban areas.
Political Unrest: Political factors play an important role, especially in form of lobbying from MNCs and other players from corporate sector. Switching to organic farming would push market forces and competitiveness to the fore thereby, reducing the impact which these players have on politics and policy formulation.
Local Acceptance: Organic farming employs local resources which in turn ensure better acceptance of the produce. Therefore, organic farming would not rely on fertilizers manufactured in some industrial estate. Rather it could rely on earthworms from a field or other locally available inputs.
Indigenous Knowledge: There are several practices in the country which have been scientifically proven to be beneficial. Stress on organic agriculture encourages free sharing of knowledge. Therefore, indigenous knowledge related to farming could help in increasing productivity and efficiency of farms.
Gender Discrimination: Conventional farming primarily involved role of only male members of the family. This is in line with the belief that machinery is essentially controlled by power and hence, women cannot be involved with the same. However, organic farming does not levy any such restrictions. Hence, this could help in alleviating gender discrimination.
Food Security: If the produce is used for local consumption (as indicated in the previous section), it could help in providing food security to the users in the vicinity. Organic farming can be usually implemented on a smaller scale which means that most of the produce would be used for local consumption. Hence, appropriate incentives could result in food security for users in the vicinity.
Participation: Participation of the local community is a key advantage. The traditional rich-old divide is primarily because of high capital requirements in form of machinery and other chemicals necessary in conventional farming. If this requirement is eliminated, the poor would not be dependent upon the rich for borrowed capital and the divide can be bridged to an extent.
Therefore, it can be concluded that with social and ecological benefits included, organic farming is a better option.
We tried to quantify these benefits by floating a questionnaire as to how much would someone like to pay if some of these benefits were provided. The results have been discussed next.
Price Premium
To quantify the ecological and social benefits which are derived from the organic farming, we floated a survey to gauge the consumer perception about the willingness to pay. The survey asked the respondents to quote a price over and above the assumed base price which they would be willing to pay provided if a particular attribute is present/missing in the product.
We chose apple as the produce with an assumed base price of Rs. 30. The findings of our survey have been shown below -
The responses point out to a higher willingness to pay for a produce if it is chemical free, has more minerals and is certified organic. They can fetch a premium of 41%, 44% and 33% on an average as per the responses we received.
The awareness of ecological factors was also inferred, however to a mellowed extent. An average respondent was willing to pay about 2.5% to 5.5% lesser if the production caused undesirable effects like landslide due to poor farming practices, more carbon emission during production and transportation. In general, people were found to be, to an extent, indifferent to these negative effects which reflected in only a minor difference in willingness to pay for a apple.
Nutrient Budgeting
Nitrogen and Phosphorus form the two key nutrients reflecting the fertility of soil. Therefore, to gauge the health of soil, presence of these nutrients is frequently used as a measure of fertility. Every plantation and harvest affects the presence of these in the soil. While some crops, like wheat etc. deplete them from the soil, others like legumes for nitrogen replenish the soil with the nutrients. Nutrient budgeting is a concept where crop cycle is planned to ensure the presence of these minerals in the soil to keep it fertile.