Valuing Social Benefits of Italian Organic Agriculture

Following and expanding the work of Pretty et al. (2000, 2001) and Tegtmeier and Duffy (2004), we evaluate the social benefits of Italian organic agriculture respect to conventional one including both negative and positive externalities, that is, both external costs and benefits. External costs are grouped into two main categories: damage to natural capital (water, air, soil, and biodiversity and landscape) and damage to human health (pesticides, nitrate, and pathogens). For conservative purposes, external benefits are supposed not changing between farming systems. This analysis views agriculture as multifunctional, not just a producer of food, fiber, and energy. Since organic agriculture is not the dominate production system, we show that the cost for increasing and maintaining the surface area dedicated to organic farming cannot be afford without public support. This public support can be seen as a compensation for social benefits accruing to this agriculture.