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Abstract

This paper outlines the potential impact of current WTO trade talks on land use, livestock husbandry and financial performance of organic and nonorganic farms in Switzerland. The results of the analysis conducted suggest that organic farms would respond to a potential WTO trade agreement in a similar way than nonorganic farms. Due to falling commodity prices, it is expected that revenues from agricultural production will decrease and cause a significant reduction in agricultural incomes. The results indicate that, on average, organic farms are less severely affected by the WTO liberalisation than nonorganic farms. Accordingly, the relative profitability of organic farms is likely to improve with increased liberalisation. Keywords: This paper outlines the potential impact of current WTO trade talks on land use, livestock husbandry and financial performance of organic and nonorganic farms in Switzerland. The results of the analysis conducted suggest that organic farms would respond to a potential WTO trade agreement in a similar way than nonorganic farms. Due to falling commodity prices, it is expected that revenues from agricultural production will decrease and cause a significant reduction in agricultural incomes. The results indicate that, on average, organic farms are less severely affected by the WTO liberalisation than nonorganic farms. Accordingly, the relative profitability of organic farms is likely to improve with increased liberalisation.

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