CALCULATING THE ECONOMIC EFFICIENCY OF ORGANIC AGRICULTURE FOR A MACHINE SYSTEM

DOI 10.32651/262-52

Issue № 2, 2026, article № 7, pages 52-58

Section: Problems of efficient management

Language: Russian

Original language title: РАСЧЕТ ЭКОНОМИЧЕСКОЙ ЭФФЕКТИВНОСТИ ОРГАНИЧЕСКОГО СЕЛЬСКОГО ХОЗЯЙСТВА ДЛЯ СИСТЕМЫ МАШИН

Keywords: ORGANIC AGRICULTURE, INTENSIVE AGRICULTURE, ECONOMIC EFFICIENCY, MACHINE SYSTEM, TECHNOLOGICAL PARADIGM

Abstract: The article proposes a formula for calculating the economic efficiency of organic agriculture for a machine system. The formula is based on the concept of a technological paradigm of agriculture, which includes the most common agricultural technologies. The principle applied to assess economic efficiency postulates a direct relationship between the economic efficiency of the technologies under study and the share of the area, where they are used, in total agricultural land: an increase in economic efficiency should lead to an increase in this share, promoting the integration of these technologies into the technological paradigm. Since a machine system requires a generalized analysis of the technical and economic characteristics of agricultural machinery and technologies, the model employs statistical data aggregated at the country level. Given the lack of statistics on many factors of organic production, the formula in question was derived based on the concept of productivity: here, the output is the share of a particular type of agriculture in the total agricultural area, and the input is the area of agricultural land used per monetary unit of retail sales of the corresponding agricultural produce. Intensive agriculture served as the basis for comparison. Application of the formula with statistical data for a group of 26 countries, including Russia, for the period 2014-2023 revealed the low economic efficiency of organic technologies (approximately 4%), as indicated by their small share in total agricultural land. Thus, despite the two-fold monetary advantage of organic agriculture in retail sales per hectare of agricultural land compared to intensive technologies, the share of organic production was approximately 2% of the studied group’s agricultural land area over the specified period. Due to their low efficiency, organic technologies have little potential to ensure food security—the main conclusion for a machine system. Given the importance of preserving the environment and human health, they require significant improvement, including overcoming the problem of scalability.

Authors: Korotchenia Valerii Mikhailovich