Evaluation of economic efficiency of investments in organic production at the family farms

Jeločnik, Marko and Subić, Jonel (2020) Evaluation of economic efficiency of investments in organic production at the family farms. In: Course for trainers: Organic farming, eco-market and their capitalization through the entrepreneurial initiative. Alexandru Ioan Cuza University; Institute of Agricultural Economics, Iaşi ; Belgrade, pp. 261-300. ISBN 978-86-6269-083-8; 978-606-714-588-5

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Abstract

Investments have important role in development of agriculture, both at macro or micro level. The main goal of chapter is to present the basic methods (static and dynamic) used for evaluation of economic efficiency of investments in agriculture made at farm level. Economic advantage for small family farms to enrol the organic production system would be presented within the chapter throughout the comparative analysis of the economic justification of investment in organic or conventional vegetable production organized in protected area (purchase of plastic greenhouse and necessary equipment). Assuming the identical production and market preconditions, the initial presumption has been proven, i.e. better value of indicators of economic assessment of investments would be achieved if investment object is implemented in organic system of production.

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