Co-Financing of Organic Farming in the EU: Necessity or Fantasy?

Purpose: The purpose of the work is to analyse and assess the situation of organic farming in the EU, as well as the support system that is targeted at this type of activity. Design/Methodology/Approach: Organic farming has shown dynamic growth and development in the last two decades, especially in economically developed countries. The study concerns sources of support for the development of organic farming in EU countries. An analytical and descriptive method based on Eurostat Faostat, Polish FADN, Statistical Yearbook of the Republic of Poland, as well as official documents and reports were used. The development of the number and area of organic farms was analysed, and mechanisms of financing ecological activity on farms were discussed. Findings: Based on the analysed information, it was found that organic farming is not developing in a similar way in all EU countries. The results of the analyses show that the main reason for conducting this type of production was the compensation paid to farmers under the CAP. Practical Implications: The obtained results can be used in analyses of agricultural policy in the scope of supporting farmers conducting production with the ecological system, considering the international perspective. Such studies are not carried out very often, and in addition, changes occur so quickly that the phenomenon should be monitored on an ongoing basis. Originality/Value: The results and conclusions are crucial because they indicate that the policy used is important and should be expanded. The legitimacy of using both the national and EU financing system for the development of organic farming has been demonstrated. Financial support should be more flexible and tailored to the needs of beneficiaries.