Productivity and Profitability of Conventional and Alternative Farming Systems: A Long-Term On-Farm Paired Comparison

ABSTRACT

A “Conventional” and an “Alternative” farm located on the western edge of the Corn Belt were compared for relative productivity and profitability over the 8-year time period from 1985 through 1992. Although earnings on both farms were respectable for the area, the Conventional farm was more profitable, on average, than the Alternative farm when organic premiums for the Alternative farm were excluded. This was due in part to higher soybean and com yields and a greater proportion of acreage in corn and soybeans on the Conventional farm. Federal farm program support payments were higher for the Conventional farm in the first 5 years, but not in the last 3 years.