Organic Farming - Externalities

Externalities

Agriculture imposes negative externalities (uncompensated costs) upon society through land and other resource use, biodiversity loss, erosion, pesticides, nutrient runoff, water usage, subsidy payments and assorted other problems. Positive externalities include self-reliance, entrepreneurship, respect for nature, and air quality. Organic methods reduce some of these costs. In 2000 uncompensated costs for 1996 reached 2,343 million British pounds or 208 pounds per hectare. In 2005 in the USA concluded that cropland costs the economy approximately 5 to 16 billion dollars ($30 to $96 per hectare), while livestock production costs 714 million dollars. Both studies recommended reducing externalities. The 2000 review included reported pesticide poisonings but did not include speculative chronic health effects of pesticides, and the 2004 review relied on a 1992 estimate of the total impact of pesticides.

It has been proposed that organic agriculture can reduce the level of some negative externalities from (conventional) agriculture. Whether the benefits are private or public depends upon the division of property rights.