Abstract
Theoretically, it is said that economies of scope can be realized in the cropelivestock cycling organic farming. Thus, it is also used as the principle of organic farming. However, it is difficult to find the cases of the empirical analysis of it in Korea. In that sense, this study is meaningful in that it analyzed the agricultural data of case farms of obtaining the approval of both organic agricultural products and organic animal products and practicing cycling farming for 4 years and tested the hypothesis. This study measured economies of scope by using the actual measurement value and estimation value farming performance statistics for 4 years of case farms. This farmhouse conducted nutrient cycling in the farm like self-manufacturing and injecting organic agricultural byproduct and wild grass as organic livestock feed and fermenting organic livestock manure to organic compost to return it 100%. The results can be summarized as follows: According to the result of cycling farming of combining and producing organic agriculture and organic livestock, economies of scope were found to be realized in this case farmhouse. That is, although not strong, EOS>0, there were economies of scope. The measurement value appeared as 0.0722, 0.00378, 0.04667 and 0.13127 in 2012, 2013, 2014 and 2015, respectively. It was improved as time passes and the scale gets smaller. Therefore, in order to further improve economies of scope, there should be measures of reducing duplication costs between agriculture-livestock as low as possible and lowering the production cost of organic feed. That is, there is a need for the management strategy to adjust the import function and cost function according to the change in management paradigm and cropping system.