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Evaluation of critical factors determining the profitability of sweet maize
97-102Views:125The main goal of this analysis was to determine, whether the production of sweet corn competitive is from the point of view of profitability and identify the main factors determining profitability. The hypothesis of this research was that sweet corn production is profitable and output factors (yields, selling prices) affect most significantly the profitability. The total costs of production with irrigation are 560 000 HUF ha-1. Average yield is 18 t ha-1, while selling prices on average of the last 5 years were about 38 000 HUF t-1. The realisable profit in the sector was 248 828 HUF ha-1. Direct cost-related profitability was 48.6% and profit level 26%. Elasticity analysis pointed out that the changes of selling prices and yields affect profitability. The critical value shows the turning point of profitability, which was at the yield of 13.82 t ha-1. It can be concluded, the hypothesis was true, because sweet corn production was profitable compared to other field crops.
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Evaluation of the factors determining the profit of lamb fattening
171-176Views:73Lamb fattening in the past 8 years was generally a loss-making business and it was worth selling only in two weight categories – at 24-27 kg and at 27-30 kg –, because in this categories a modest profit could be achieved in most of the years. Selling lambs at 20-24 kg-weight provides a proper income for the sheep farmers only if the milking period is prolonged. If the lambs are weaned at a weight of 16-20 kg, then they are not worth selling them in this weight category. The profit of fattening ram lambs is higher and safer than that of ewe lambs. In Hungary, the profitability of lamb fattening is insecure due to the large variability in purchase prices and the instability of the market. When studying the profitability of the two genders combined, it can be stated that the summer fattening period was the most profitable, while if only the rams are considered then the profitability of the autumn and spring periods was the highest, which is due to Easter and Christmas lambs. Based on our results, we came to the conclusion that ewe lambs and rams should be sold at a lower and higher weight category, respectively.
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Technological and Economic Analysis on the Hungarian Rice Sector
226-233Views:68Hungary lies on the northern edge of rice production area. According to this, the climatic conditions area not perfect for this species. The production area of rice involves typically the poorer quality soils, however these meet the requirements of rice. In Hungary exclusively domestic types are grown which have high yield and good quality and these are usually wore successful than foreign types. On the other hand, these Hungarian types should be improved considering safety in production. Nowadays, rice is grown in large scale companies with 300-1400 hectares, where production technology already exists, machinery is suitable, however the latter one a little bit old.
The average yields of the analysed companies were 3-4 t/ha in the past few years, which were a little bit above the national averages. The operating cost per hectare is almost 200 thousand HUF, from which the main part is the cost of machinery (35%) and the material cost (34%). The main part of the latter one is the irrigation costs (30%). The average cost, calculated from the total production cost, is 80 thousand HUF/t. Considering the above-mentioned costs and the price of rice (75 thousand HUF/t) it can be stated that the profitability of the rice sector is not the best, the cost rated profitability is -6.6%. According to the results of this analysis possibilities for the increase in profitability and improvement are increased subsidies and market price, as well as genetic improvement. -
Economics of broiler fattening in Hungary
171-180Views:84The purpose of this study is to present economic circumstances of Hungarian broiler sector based on secondary data after brief introduction of international and home situations. Then it analyzes costs, revenues and profit relationships of producers, which has competitive efficiency indicators and high standard production based on a model created on the basis of primary data.
The paper confirms the Hungarian poultry sector international competitiveness falling. One important reason of this situation is the low profitability in the sector, which is typical of both farms produce under worse efficiency indicators and high standard producers. Beside lack of technological standards and efficiency, adverse trend of output and input price – mainly feed price – impact low profitability.
Realization of technological developments and improvements according to international tendency, which affect directly or indirectly the efficiency and costs of broiler fattening are determining in point of realizable profit -
The economic risk analysis in the case of agricultural enterprises
107-116Views:112The company’s activity, profitability and growth potential are influenced by risk and uncertainty derived from the economic environment. The principal thing that makes difference between risk and uncertainty is the capacity to be quantified, and then the risk can be measured, whereas uncertainty is not. Specific risk types of agricultural enterprises are on the one hand the economic risk and specific risk arising from the main agricultural activity. The economic risks include financial risk categories like market risk, liquidity risk, credit risk and operational risk. Macroeconomic risk manifest also a significant influence to the company and the importance of taking into account of this, importantly increased in recently years. In present paper, I quantified the total risk of company by using financial and operating leverage indicators. The company’s growth was characterized with internal growth rate and sustainable growth rate. The present research aims to explore risk and growth level of agricultural companies and grouping companies by different characteristics. In present analysis I have used cluster analysis. From the results I can summarize, that the agricultural enterprises growth is made by using internal financing resources and their financial leverage level is lower that operating leverage level.
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The Connection of Capital Leverage and Profitability by the Corporate Agriculture Enterprises
35-39Views:66The analysis of capital system of agricultural corporations is a key issue of economics and the effect of it's fluctuation can be observed on several fields of the life of corporations.It influences
for example the assets-, financial- and income situation of the enterprises.The aim of this study is to analyse the connection between capital structure and profitability in order to reveal such
a ratio for the capital leverage and liabilities, by which it can say, to that connect the profit or loss. By the analyse get activity- and size specified results.With the empyrical results I determine the quantile point between the profitable or the non profitable operating. -
Farms in the system of European supportpolicy
79-83Views:73Common Agricultural Policy (CAP) has been having a great past, it is over numerous direction and structure changes in the last half century. After the Treaty of Rome, the harmonization of he agricultural structure and the production of Member States has been launched, during which the economic changes in the world and in Europe were continuously being kept track of. By using common experience, they strived to develop an agricultural sector that supplies the Member States of the Community with food, while the competitiveness and living circumstances of family farms are being improved. The general directions outlined in Stresa in 1958 were significantly redrawn owing to the transformed market conditions and EU accessions. The subsidization of family farms and the improvement of their profitability are having a stressed importance nowadays, too. Our country, as the fully qualified member of the European Union tries to meet its obligations undertaken in the accession treaty and therefore to develop an agricultural sector carrying out diversified agricultural production with a healthy age structure. The aim of the study is to specifically overview the issue of common agricultural policy by stressing the main development points and to introduce the Hungarian conditions of family farms. Besides, there will be an evaluation of the research works examining the income conditions of family farms in the North Great Plain region.
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Correlation between sowing time of maize hybrids, yield and seed moisture content at harvest on chernozem soil
32-41Views:104In this paper, we analysed the results of maize sowing time experiments conducted by the Department of Crop Sciences and Applied Ecology of the University of Debrecen Agricultural Sciences Centre, during the period from 1997-1999. We made the experiments at the experimental garden of DE ATC, on a chernozem soil with lime deposits.
In 1997, we examined five hybrids, in 1998 six hybrids, and in 1999 three hybrids, with three sowing times. Sowing times were early (10. Apr. and 08. Apr.), optimal (25. Apr. and 28. Apr.) and late (15. May and 17. May).
We examined the following standards: yield, seed moisture content at harvest, thousand kernel mass, duration of flowering, emergence time and profitability.
In 1977, the emergence times, in order of sowing, were: 24, 12 and 9 days. Yields of the sowing times were the following, in mean, for the five hybrids: in the early sowing time (10. Apr.) 11,81 t/ha, in the optimal sowing time (25. Apr.) 11,67 t/ha, and in the late sowing time (15. May) 12,9 t/ha. The seed moisture content of the five hybrids at harvest was 8% less in early sowing time, than in the late sowing time. The thousand kernel mass was the biggest in late sowing time, but we could not prove any significant connection attributable to the effect of sowing time. We examined
profitability, too. Of the five hybrids, four attained the greatest profit with the early sowing time in 1997.
In 1998, the emergence times, in the order of sowing, were: 21, 10 and 11 days. Yields of the sowing times were the following, in mean, for the six hybrids: 08. Apr. 10,34 t/ha, 25. Apr. 11,02 t/ha, 15. May 11,52 t/ha. There were no significant differences between yields in 1998. The seed moisture content of the six hybrids at harvest was 7% less for the early sowing time, than for the late sowing time. In 1998, the profits were greatest for the
early and traditional sowing times.
In 1999, the numbers of days from sowing to emergence were 18, 9 and 9 days, in the order of sowing times. Yields of the sowing times were the following, in mean, for the three hybrids: 13,25 t/ha, 12,51 t/ha and 12,34 t/ha, in the order of sowing times. The seed moisture content of maizes at harvest was 6% less with an early sowing time in the mean of all hybrids. In 1999, hybrid maizes gave big profits with early sowing times.
Summing up the results of the three years, we can conclude that we get a significant yield increase and reduced seed moisture content at harvest if we apply the early sowing time, which can considerably increase the efficiency of maize cultivation. -
Case study based analyses of economic viability of Hungarian beef farms
184-193Views:73Our country has great traditions in the field of beef production. As early as the Middle Ages, Hungary was known as Europe’s beef exporter. In this decade, production of the Hungarian Grey has increased, due to the popular method of keeping these animals extensively. These animals were even exported to the European markets on foot.
After joining the European Union, this sector of agriculture has been receiving attention due to the major subsidies which were given. Accordingly, numerous farmers have tried to enter this sector of production. However, the power relations have been changed lately, as have the technology used in production, which has undergone several developments. The integrative connections in the sector had been split and also the size of optimal and sustainable production has arisen.
The economic activities must be judged by their effectiveness and profitability, but in most cases their effectiveness can only be seen through such outstanding facts which are independent from the farmer.
I would like to model the economy of a certain enterprise, and the size and the level of its production, through my research under the actual economic circumstances. In my research, I pay special attention to the circumstances which are important in the Hungarian agricultural sector and rural development. -
Viability and Economies of Scale in EU Farms
332-338Views:64With this study, the author intends to draw up the main characteristics of the institutional background of the Farm Accountancy Data Network, operated by the European Union. Among the factors that contribute to the formation of the institutional background of the FADN database, special emphasis is laid on the Commission and member state level legal framework, in order to provide potential Hungarian users of the database with authentic and substantial information. Also, much attention is paid to definitional misunderstandings which cause, or might cause the farm business management type utilization of the database to be imperfect. As for this goal, some of the elements of the FADN information structure are investigated in a conventional Hungarian cost structure. In order to facilitate an easier understanding of the database, the different relations of economic size classes are also reviewed in this study. The author of this study is – in the first place – trying to analyze the meaning of Standard Gross Margin, the index used in the FADN structure to categorize farms, by localizing the position of the different cost constituents of SGM in a conventional Hungarian cost matrix. Last, but not least, the author is trying to draw all researcher’s attention on the possibilities, hidden in the FADN database by introducing some analyses from his own field of interest based on FADN information.
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Feeding questions of organic lamb fattening
155-160Views:88Organic farming has done in line with conventional farming in the Karcag Research Institute of DU CASE since 2001. Our organic farming activities were enhanced with sheep farming and
grassland management in 2005. We started our study of technology development of organic lamb fattening and the treatment of its economic effect this year. Our goal was to develop
the elements of the technology to reach a more efficient organic lamb fattening. We also studied what economic advantages the organic sheep farming could realize in the present economic environment. Our studies were carried out between 2005 and 2007. We established that the excellent ewe feeding (good quality of fodder and silage) can decrease the lamb feeding cost between the 2nd and 8th weeks of the lambs’ life. We established that the
yield of convention lambs are significantly higher than the yield of organic lambs. The cost of organic lamb fodder is significantly lower than the cost a convention lamb fodder, but the profit was higher in the case of convention lamb fattening. The organic lamb fattening technology (without extra price) is not competitive to the conventional lamb fattening technology. We think that the profitability of organic lamb fattening is significantly less than of the convention one. The organic lamb price should be 20-30% higher than the other price to be competitive. Unfortunatly there is only a little demand for organic lamb and there is no difference between the prices of organic and convention lambs, so organic sheep farmers have worse economic circumstances than conventional sheep farmers. -
Economic Assessment of Biodiesel Production for Hungarian Farmers
72-76Views:74Utilisation of oil of plant origin as a fuel is gaining acceptance in the European Union and elsewhere. Besides environmental protection, energy saving, and decreasing over-production of food. Additionally, the subsidisation of farmers and the development of rural sub-regions also contribute to its spread. This study specifically focuses on the direct effects biodiesel's raw materials and final products are now having on farmers, while reviewing and quantifying these effects. I have purposely restricted my analysis to these two elements of the biodiesel chain.
The biodiesel chain seems to be a great method for improving the economic and social position of participant farmers in many ways. Presently, the profitability of raw materials’ production looks to be the crucal point in the chain, and could be strengthened best with intensive, habitat-specific agrotechnic. It would only be possible to reach a favourable profit margin for farmers if yields reach unrealistic averages or if there is a significant hike of the 2000 producer’s price in the oil plant branch.
The main attraction of sunflower- and oilseed rape production lies in the stabilization of market conditions, which is not only gong to appear in oil plant branch but – thanks to the reduction of outputs – also in the cereal branches. Better economic safety for farmers may play a role at least on the same level as in plant production, which involves more risks than profit maximalization.
The reduction of the prime cost of biodiesel could be possible through the direct combustion of the whole oilseed plant or its residues or electricity production using them. Whereas energy demand for biodiesel production is low (appr. 5%) but it needs subsidization and the prices of natural gas and electrical energy presently look favourable in Hungary. Additionally harvesting and baling of the residues is technically problematic, which is why their use may seem to be reasonable just over the middle or long term. Another possible factor of cost reduction could be the centralization of some partial operations, which needs serious financial resources to reduce amortization cost per product, provided there be several biodiesel projects near each other during establishment. Creation and operation of a logistical system could also be a good method for improving the viability of the biodiesel chain, in order to optimize transport schedule and distances. However there are also some organizational difficulties in this case. -
Labour productivity in the Hungarian agriculture
119-128Views:149This paper presents the situation of the agricultural labour employment and evaluates the agricultural labour productivity in Hungary. Since Hungary’s EU accession, the share of agricultural employment in the total employed population has been stabilized at around 5% in the country. Due to low wages, low profit and low prestige, agricultural jobs are not attractive. The gross and net labour productivity gap between Hungary and the EU have been significant since the EU accession. The agricultural labour productivity of the Hungarian regions also shows a different picture. The labour productivity influences the cost, profitability and competitiveness of products. The advantage of the cheap labour force in Hungary’s agriculture significantly decreased due to low labour productivity. There are several opportunities to increase the agricultural labour productivity such as the increase of labour force qualification, moving toward producing higher value added agri-food products, rejuvenation of population in agriculture and the improvement of the conditions of financing agriculture.
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Bioreactors in Hungary
248-254Views:109The transformation and utilization of organic materials must occur with the highest degree of environmental conformity. This conformity – in accordance with the guiding principles of the European Union – will result in a new economic and systematical approach. We can establish the profitability of projects with the utilization of surplus effects which characterize multiple-product lines.
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Financial Analysis of Agricultural Enterprises’ Economic Results
270-279Views:34The main objective of this paper is to give an overview about the economic results and financial status of agricultural enterprises in Hajdu-Bihar Count, as well as, froa methodology viewpoint,find the place of the used indexes in the system of effectivity indexes in farm management . From the complex database describing the enterprises, the figures on the balance sheets and profit and loss accounts were used and analysed. As a result of the analysis the below statements can be made:
The owner’s equity ratio within the total equity is very different in corporations and in individual farms. The lower values in case of corporations show their indebtedness. At the same time, the figures indicate that it is more difficult for individual farms to receive loans.
The average of dynamic indebtedness indexes, in case of individuals are closer to 0 which generally derives from the low level of liabilities. The same indexes of corporations o the other hand show significant indebtedness. The figures indicate that the yearly cash flow can hardly cover the net liabilities.
The profitability proportional to the production value is generally low, mostly negative, independent from size and organisational form.
As a summary, it can be said, that individual as well as corporate farms suffer financing problems, the nature of these problems is different in the two groups. On the on hand, the operation and development of the individual, mostly the smaller, farms are hindered by the difficulties of acquiring external capital. On the other hand, the results of corporate, mostly the cooperative, farms is impeded by the burdens of liabilities accumulated in previous years. -
Study of changes in the strength of connection between grey cattle cows and their offspring after weaning
129-136Views:242It is important to minimize stress for cattle because of animal welfare and profitability. This study aims to reveal how long after abrupt weaning the cow and her offspring show a need to rebuild the connection if physical barriers are removed and distances disappear. The research was carried out on Szamárhát Farm owned by the Tiszatáj Foundation, Hungary. In the autumn of 2019, thirty-one calves were weaned, randomly selected from 81 grey cattle cows’ offspring. The oldest calf was 10 months old, while the youngest one was 6 months old on the day of weaning. They were divided into three groups and reunited with the cows during the first, third, and fifth weeks after weaning. Each reunion happened in the early afternoon and the cow and her offspring spent 24 hours together again. The formation and the strength of the connection were recorded for an hour three times during this period, first in the afternoon, then in the morning, and the next afternoon. It can be seen that both parties showed the need to form the connection during the first week after weaning because the bond made between them was obvious in a short time. The connections proved to be strong. However, neither the cows nor their offsprings showed any intention to form strong connections in the third and fifth weeks. In the majority of the cases, no connection was formed.
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Applicability of precision weed detection technologies
163-168Views:157In an agricultural field or horticultural plantation, weeds compete with cultivated plants for water and nutrients. The transpirated water by the weeds is needed to be replaced, which saddles surplus costs on the farmer, which could reduce the profitability of crop production. The aim of the precision plant protection system is to protect cultivated plants by applying site-specific technologies and optimized herbicides combination and methods, without environmental damage. The first step of precision weed control is the scouting for weeds. Traditional and modern (passive and active remote sensing) weed surveying technologies are available to detect weeds. The examination was carried out in an intensive apple orchard with drip irrigation system, protected by hail net of the Study and Regional Research Farm of the University of Debrecen near Pallag. The spectral-based weed detection was worked out by the Tetracam ADC broadband multispectral camera and the GreenSeeker 505 vegetation indexmeter. A strong correlation observed between vegetation indices and weed coverage. Based on the collected data, weed maps are created in appropriate software environment, thus the spatial distributions of the weeds are determined. The species level discrimination and the recognition of weed structural parameters were executed based on the 3D point cloud data by Leica ScanStation C10 laser scanner.
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Decreasing Energy and Water Use in the Meat Industry
24-28Views:61The technology supervisions are needed from time to time in order to involve the new research results, experience, new technologies and equipments organising principles into the production and to make it cheaper and with less expenditure to increase the profitability and competitiveness. In the course of our investigation we aimed the analysis of the traditional technologies and improving of it. In this article we detail the heat treatment curing process. We applied the principles of experimental design for the determination the main influencing parameters in the processes. Then we made simulations and modelling in seeking for the environmentally better technology programs. We developed a method for measuring the temperature development of products with small diameter using the similarity theory in unit operation. In the course of the analysis of the heat treatment processes we could state that the heat treatment time can be reduced significantly by decreasing the size of the product and choosing the right ratios among the surface heat transfer intensity, ambient temperature and involving the lethality obtained during the cooling phase. The total sparing were about 10-20%. We solved the problem associated with the sensor placement error using a plastic material (metamid). We establish a curve between the real product temperature and plastic rod temperature by which the monitoring of the process became more accurate. We determine the size modification for different product sizes. In case of curing we observed very similar phenomena. For the determination of the diffusion coefficient we adopted the Ball-method not using in this field till today. We could reduce the excess saltiness and loss of NaCl with about 5%.
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Analysis of Economic Efficiency of Energy Wood Plantations
53-60Views:76After the EU-accession we should have a definite idea about what kind of production structure and land use should Hungary obtain to meet the conditions undertaken in the different governmental decisions. In the course of Hungarian land use, significant changes have taken place in the last eighty years. Further changes are influenced by the fact that according to various decisions, legislative provisions and ideas in a short time the energy orchards’ domiciliation could start in large. For this, financial support can be required from EU-sources. As for the woody energy plants, subsidies can be required for the domiciliation and as for herbaceous plants grants can be required for growing. As far as the latter is concerned, the subsidy will be around 26-27 thousand Ft/hectares according to the plans. However, the cultivation method does not have to be changed to
switch from plow-land to energy plants. The question is if the produced commodity will be received by power plants and if it ensures appropriate income for the farmer. In my research I wanted to find from the given woody energy plants which are those that are the most profitable. -
Tools of promoting „energy-crops”
47-52Views:64The utilisation of renewable energy sources have come to front with the decreasing fossil fuel stocks, the unsolved problems and fears of nuclear energy and so the cumulating energy dependence. In Hungary the potential of biomass is the largest in renewable energy sources.
During our examinations, we analysed the promotion of producing energy crops in Szabolcs-Szatmár-Bereg county. With the examination of the territories involved in energy crop subsidies it can be stated that the energy crop subsidy had its promoting role only on those areas where because of the bad soil conditions the energy crop producing is more profitable than other alternative (non energy) crops.
The expected growth rate of energy plantations will be low, according to the low rate of subsidy intensity (40-60%). The uncertainty of direct area payments decreases the calculability that cuts back the favour of investment in short rotation forestry planting. -
Energy forests or vineyards?
237-240Views:67This paper primarily aims at giving an introduction to an alternative opportunity for vineyards owners many of whom have come to a
decision about elimination of their vineyards. The paper is focusing on the Mátra wine-region as a study area, which is the largest mountain
wine region in Hungary where more than one third of supported clearing of vineyards have been implemented in the last few years. The
abandoning of vineyards is explicable in more than one way such as very small average size of land or the increasing mean age of owners
etc. The fundamental reason is the chronic doubtfulness of the grape and wine market and the low level of overall profitability of production.
Grape production has a long tradition in this region, thus the disappearance of vineyards caused serious problems in land use through the
absolute lack of plans for the future. The popularity of biomass production in the press and the biofuel resultant from vine stocks raise
interest for short rotation forestry within a group of farmers. Short rotation forestry offers a new chance for some farmers to cut oneself adrift
from the harmful effects of the market of agricultural products. -
Production and economic risk analysis of pig fattening
171-176Views:117I prepared a “model farm” producing fattening pigs in order to examine the main risk of production and market factors affecting the profitability of fattening pig production. Values of body weight (at the beginning of fattening and at the end of fattening), mortality rate, feed conversion ratio (FCR) of fattening pig as well as the main cost and price data were recorded as the input data of the model. Production value per unit, production cost per unit and income per unit were used as output. The Monte-Carlo simulation was used in the model for risk assessment. Based on the results of the analysis, it was concluded that the production value per unit was most affected by the selling price of fattening pig (ß=0.972), the production cost per unit were most influenced by the body weight at the beginning of fattening (ß=0.567) and the feed conversion ratio (ß=0.537), in addition, the change of the income per unit was most determined by the previously factors.
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Possibilities of ecological farming in the North Great Plain Region
69-71Views:67Agriculture plays a significant role in the North Great Plain Region. Organic farming is a sustainable farming method controlled by regulations. Active environmental protection and conservation play significant roles in organic farming, along with food quality and safety, originality and the monitoring of products. Organic farming offers opportunities to create employment, social safety and high profitability. As a result of these characteristics, organic farming could become one of the most important means of developing our region in the future.
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Analyzing the Efficiency of Dairy Farms by Using the Method of Data Envelopment Analysis (DEA)
17-21Views:89In Hungary the dairy sector is in a long-term critical period, the stock has been in constant decline. The consumption of milk and dairy products in Hungary is slightly rising compared to the world tendency, and it is fallen behind the level in 1990. The milk consumption per capita in 2006 was with 75 liters less than the EU-15 average. Dairy enterprise is a very risky activity: the profitability of the enterprise is affected by the fluctuation of feed and animal health products prices from the side of inputs, and by the fluctuation of end-product prices. Under these circumstances it is vital for the
cattle breeders, in order to survive, to harness the reserves in the breeding as effectively as possible. In our research we made a multi-faceted efficiency analysis of an agricultural holding’s three dairy farms. The chosen method for the analysis was Data Envelopment Analysis (DEA). The
selection of the method is justified by the fact that there is not such a reliable database by which we could define production functions, and that DEA makes possible to manage several inputs and outputs, i.e. multiple decision problems, simultaneously. By using DEA the sources that causes shortfalls can be identified, analyzed and quantified on farms that does not operate efficiently, thus it can help the corporate decision support successfully. In the model inputs are the cost data per one liter milk – feed, medicinal product use, logistic costs -, and the main parameters
concerning the keeping and rearing. Outputs are indicators concerning milk production, milk quality and others. We prepared the model in MS Excel, the linear programming model series were programmed by Visual Basic. After solving the model, in light of the shadow prices we can determine why either of the farms is not efficient. -
Economic Aspects of Winter Wheat and Sunflower Production Under Organic Farming Methods
256-261Views:84On the basis of data from selected organic crop producing farms around Hortobagy and a significant conventional agricultural enterprise, the efficiency calculation of two important crops, winter wheat and sunflower were compared to each other, according to the organic and the conventional farming methods. The analysis was carried out on the basis of data of the year 2002, helped by the calculation and the comparison of the efficiency indexes. According to the results, the organic winter wheat was more highly profitable in 2002 than the conventional one, and this is because the price ratio of the two was quite high, however the yields and the production costs per hectare were almost on the same level. Considering the sunflower, organic farming was less productive than the conventional one in 2002, as the average yield in the examined organic farms was significantly lower than under the conventional farming method, and this was not compensated by the extra price for the organic crop product.