Comparative Analysis of Economic Performance in Agricultural Products Obtained in The Conventional System and In Ecological Agriculture

The purpose of the paper is to analyze the economic performance of the agricultural products obtained in conventional system and in organic farming with emphasis on the direct payment schemes, on the incentives that affect the decision of the farmers to adopt the transition from one production system to another, as well as the analysis comparative of the economic performances of agricultural products in accordance with the practices of ecological and conventional management. This study was based on research on the economic calculation and more precisely on the calculation and management of costs at system level, in general, and at agricultural product level in particular, to estimate the effects of the target subsidy reform act of Romania, in particular of payments on income inequality. The research was conducted for the year of production 2020 and offers an overview of the income structure at the level of agricultural product as well as the degree of influence of the direct payment schemes in obtaining the income, the crops of soy, rice, hemp, and sugar beet. The results of the study revealed that there is a considerable differentiation not only in terms of the economic performance of organic agriculture (average production, production costs, revenues) compared to the conventional system, but also the existence of a financial incentive of 218 euros/ha, granted through National Rural Development Program 2014-2020 - sMeasure 11.2 Support for the maintenance of organic farming practices, which differentiates the two production systems.