Despite the continuous increase in the number of organic farms and in the areas in which organic methods are used, organic farming remains a niche sector, not only in Poland but also in other European countries. Nevertheless, a form of organic farming can still be attractive for part of farmers, particularly in view of the continuing financial support for this sector. This paper presents the state of organic farming in Poland and the production and economic conditions of agricultural production using the example of major agricultural production activities in organic farms. The results based on Agricultural Products Data Collection System AGROKOSZTY shows that the organic agricultural production is profitable and economically justified. In comparison with conventional production the low level of direct costs in organic production leads very often to higher level of gross margin from particular agricultural activities. The combination of low level of total costs and financial support for organic production gives organic farmers the higher level of income from each studied activity. The production capacity is limited but the production results seems to be not that important in organic farming than the balance between economic results, social conditions and environmental requirements.