COMPARISON OF THE PROFITABILITY OF ORGANI C AND TRANSITIONAL CEREAL FARMS WITH CONVENTIONAL FARMS IN QUEBEC

Financial data for 92 conventional farms, cropping at least 20 hectare s of small grains, and 21 organic farms, cropping at least 15 hectares of cereals, have been extracted from the Quebec Agritel data bank for comparisons. Conventional farms are formed into four groups: low inpu t level (LIL), high input level (HIL), low yield (extensive) and high yield (intensive). Relative to conventional farms with regard to cerea ls and barley, organic farms have significantly lower yields and costs , although gross returns and profitability are similar. Subsidies are important and represent a high proportion of the profitability for bot h organic and conventional farms. Compared with the four conventional groups, organic farms' gross return falls between the more profitable (LIL and intensive groups) and the least (HIL and extensive groups). I n conclusion, completely different production systems can lead to simi lar economic results, at least in the short term.