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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.