Economic perspectives of Korean organic agriculture.

AbstractOrganic farming has had a tentative start as an alternative production system but now is more widely accepted in Korea. Many farmers express an interest in organic agriculture. However, farmers are reluctant to adopt organic farming practices because of many obstacles. They perceive that there are high risks involved, although the expected income from organic farming is comparable to that of conventional farming. The price premium of organic products is an important factor to induce farmers to participate in organic agriculture. The empirical findings reviewed in this paper indicate that factors of production receive a lower remuneration in organic agriculture than in conventional farming. Substantial price premiums on outputs are essential for the economic viability of organic farming. Consumers' lack of willingness to pay significant price premiums on rice and vegetables seems to be the most important obstacle to the expansion of organic farming. Finally, in order to soundly promote organic agriculture, additional public and private research is needed on many aspects of organic production and marketing in Korea, including the economic impacts and social benefits of widespread adoption of organic farming. Additional research is also needed on how to improve organic farming systems from agronomic and ecological perspectives, as well as from an economic perspective. The extent of the national research agenda on organic agriculture, along with programme and policy initiatives, will help shape the role that organic farming systems play in Korean agriculture in the decades ahead.