Requirements of organic farming and impact on direct costs of organic production

Information and knowledge are now considered the most important factors for the development of the farm, and in the economic aspect they often allow to build competitive advantages. Naturally, the requirements of today's food production sector go beyond the economic effects of the production and also apply to meeting the environmental requirements. Organic farming as a holistic system can be such a proposal for management, but it places high demands on farmers. Restricted legislation in organic farming regulates in detail the manner of production, impacting directly on production character and also economic results achieved in organic farms. Farmers using theoretical and practical knowledge are needed to meet all formal requirements and they want to achieve the best economic results of production. We can point out the strengths of organic production, which by using natural resources, best agricultural techniques and sustainable plant and animal production can lead to a reduction of direct costs of production. The results of studies on the AGROKOSZTY system, relating to the economics of organic production, indicate lower than in conventional farms direct costs of production, as well as good income performance from particular production activities.