The case of a dairy farm
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For the dairy farm, the conversion from conventional to organic farming is a profit increasing choice. However, average profits per hectare remain negative under both systems. Crop production costs are lower in organic systems. Simultaneously, total labor requirements are significantly higher, mainly caused by increasing labor demands per animal place in organic production. In contrast to the arable and the pig fattening farm, independent of the plot size and farm-field distance, 200 kW is the cost minimizing mechanization level for both the conventional and the organic farming system.
With increasing distances, crop production costs and total labor requirements are increasing, followed by an decrease in profit. Increasing plot sizes have a opposite effet: Costs and labor requirements decrease resulting in an increase in profit. Thereby, the effects of plot sizes and farm-field distances are higher in conventional systems. This particularly applies for crop production costs and the profit.