Environmental benefits of organic farming
Organic farming is a particularly resource-efficient and environmentally friendly form of agriculture based on the principle of sustainability. The avoidance of mineral nitrogen fertilizers and the land-based nature of animal husbandry promote almost closed nutrient cycles: nutrients produced on the farm in manure and slurry are spread on the farm's own land and can be absorbed by the plants. Nutrient surpluses from the purchase of feed and the use of mineral fertilizers are largely reduced. This protects surface water and groundwater in particular, which are less threatened by nutrient runoff (especially nitrate) in organic farming than in conventional agriculture. Furthermore, the avoidance of chemical synthetic pesticides has a positive effect on the protection of water bodies and biodiversity.
Organic fertilization and the cultivation of nitrogen-fixing protein crops (legumes) promote humus formation and soil fertility, with positive effects on soil parameters such as aggregate stability and infiltration capacity. Soil organisms find good living conditions and their activity ensures a stable soil structure. Cover crops and undersown crops, which are often grown in organic farming, reduce the risk of soil erosion by covering the soil almost all year round. This contributes to flood protection and supports adaptation to the effects of climate change.
Furthermore, organic farming promotes the biological diversity of plants and animals in the agricultural landscape through diverse crop rotations with intercropping and the avoidance of pesticides. More animal-friendly husbandry, which often allows for outdoor access, exercise, and fresh air, as well as a longer fattening period and reduced use of antibiotics, promotes animal welfare and ensures acceptance among the population.
Organic farming can also contribute to climate protection if ecological management measures succeed in permanently increasing the humus content of the topsoil. This is because higher amounts of carbon dioxide are stored and removed from the atmosphere. In addition, no mineral fertilizers are used, the production of which is particularly energy-intensive.
The comparatively good environmental performance of organic farming described above is particularly evident in relation to the area under cultivation. From an area-based perspective, organic farming has many advantages over conventional farming in terms of resource conservation, mainly due to the systemic approach pursued in organic farming and the lower production intensity.
From a product-related perspective (eco-efficiency), however, the picture is mixed. The reason for this is that organic farming achieves lower yields than conventional farming. Emissions per product unit, i.e., per kilogram or liter, can therefore be higher or comparable to those of conventional farming because, due to lower yields, more land must be cultivated or more animals must be kept to produce the same amount of grain or milk, for example. This is relevant, for example, when assessing the climate protection performance of organic farming. This shows that, in general, an agricultural system can only be as sustainable as the corresponding consumption allows.
Organic farming
The proportion of land used for organic farming is a key indicator of the national sustainability strategy. The German government's goal is to increase the proportion of organically farmed land to 30 percent by 2030.
However, with 11.2 percent of agricultural land used for organic farming in 2024 (data source: Federal Statistical Office, various survey methods; main land use survey, agricultural structure survey), Germany is still a long way from this target. In recent years, the proportion of land used for organic farming has grown slowly but steadily, but has stagnated compared to the previous year. Further efforts and sufficient financial support from European agricultural policy, the federal government, and the states are therefore necessary.
Data from the Federal Ministry of Food and Agriculture, collected using a different method, show that at the end of 2024, a total of 35,881 farms – 14.1 percent of all agricultural businesses in Germany – were farming their land according to the principles and rules of organic farming. The organically farmed area amounted to around 1.9 million hectares, representing 11.5 percent of the total agricultural area (BMLEH 2025).
Compared to the previous year, this represents a decline of 799 farms, which, according to the BMLEH, is due to age-related farm closures and a lack of farm succession. This makes it all the more important that government support is designed in such a way that it helps farmers make a permanent switch to organic farming and gives them long-term planning security.
A comparison within Germany shows that organic farming varies in importance depending on the federal state. While, for example, in Baden-Württemberg, Brandenburg, Saarland, Hesse, and Mecklenburg-Western Pomerania, a significantly higher than average proportion of land was farmed organically, organic farming was significantly less important in Lower Saxony, North Rhine-Westphalia, Saxony, and Schleswig-Holstein.
Organic products are enjoying growing popularity in Germany. Germany is the largest sales market and largest organic producer in Europe. In 2024, sales of just under 17 billion euros were achieved. Compared to the previous year 2023, demand has thus risen by 5.7 percent (BÖLW 2025). However, demand for organic products still significantly exceeds domestic supply. Some of these organic imports could also be produced in Germany, but this would require further efforts in terms of planning security and reliability of subsidy policy.
Organization and legal regulations
The legal basis for organic farming is “Council Regulation (EC) No. 834/2007 of June 28, 2007, on organic production and labeling of organic products and repealing Regulation (EEC) No. 2092/91 and its implementing rules” (Commission Regulation (EC) No. 889/2008). The objectives, principles, and rules for organic production have been formulated in more detail in this regulation and are intended to lead to greater transparency and consumer confidence. Furthermore, a regulation laying down implementing rules for imports of organic products from third countries (non-EU countries) has been adopted (Commission Regulation (EC) No. 1235/2008). The National Organic Farming Act (ÖLG) serves to implement these EU regulations and enacted legal acts and bundles certain enforcement tasks such as the approval and control system. With the amendment in 2009, the law was adapted to the new EU regulations for organic farming. A further amendment to the ÖLG came into force on December 1, 2013.
The EU Organic Farming Regulation is to be substantially amended. On March 25, 2014, the European Commission presented a proposal for a new regulation on organic production and the labeling of organic products, as well as a proposal for an action plan for the further development of organic farming in the EU. After very controversial discussions at national and European political level, the compromise reached on June 28, 2017, as a result of interinstitutional consultations between the European Parliament, the Council, and the European Commission, was supported by a qualified majority of Member States in the Special Committee on Agriculture on November 20, 2017. On November 22, 2017, the European Parliament's Committee on Agriculture and Rural Development also followed this vote. The new EU Organic Regulation came into force on January 1, 2022. The EU Organic Regulation (EU) 2018/848 of May 30, 2018, is thus the new basic law for the organic sector in the European Union.
Many organic farms in Germany are organized in cultivation and producer associations. Most associations belong to the German Organic Food Industry Association (BÖLW), which is the umbrella organization for the entire German organic sector. The BÖLW strives to promote the development of the organic food industry and to represent its common interests. Its activities focus on shaping the political framework. The guidelines of the German organic farming associations meet the criteria of the EU Organic Regulation, but are stricter than EU regulations in some respects.
To improve the labeling of organically produced products, a nationwide uniform eco-label has been available since 2001 in the form of the organic seal. On July 1, 2010, the European Commission introduced a new EU organic logo (a leaf formed from stars) that is mandatory for organic products. Since July 1, 2012, after a two-year transition period, the EU organic logo must now be printed on all organic products. It ensures that consumers can quickly recognize organically produced products. In addition to the mandatory EU organic label, manufacturers in the EU can continue to label their organic products with recognized, nationally known organic labels and private sector logos (e.g., Demeter, Naturland, etc.).
Funding of organic farming
The particularly environmentally friendly and resource-saving production of organic products requires greater management effort and more labor-intensive processing. Due to lower yields and higher costs, organic products are generally more expensive than conventional foods and consumer goods. Nevertheless, organic farms are often in a better economic position than comparable conventional farms. Ecological environmental services are promoted and rewarded as agri-environmental measures within the framework of European agricultural policy and by the federal states. In particular, the conversion to organic farming requires targeted support in the first two to three years, during which the products cannot yet be sold as organic goods at correspondingly higher prices. The conversion to and maintenance of organic farming is supported in Germany as part of the agri-environmental programs under Council Regulation (EU) No. 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD). The federal government participates in the promotion of organic farming through the federal-state “Joint Task for the Improvement of Agricultural Structures and Coastal Protection” (GAK). The funding for the support programs is shared between the European Union, the federal government (60 percent), and the states (40 percent). EU funds must be co-financed by the federal states. This means that they can only be accessed and used if the federal states provide funding from their own budgets. In accordance with the principle of subsidiarity, the federal states have leeway in implementing agricultural support programs in order to tailor them to their specific needs. The subsidies for converting to and maintaining organic farming therefore vary in amount from state to state.
The aim of the Future Strategy for Organic Farming (ZöL), published in 2017, was to stimulate growth in the organic farming and food industry. In 2023, the ZöL was further developed into the “2030 Organic strategy” in a participatory process involving numerous stakeholders from business, politics, research, consulting, and practice. Based on six fields of action with a total of 30 concrete measures, it shows ways in which organic agriculture and the food industry can be sustainably strengthened and the land use target achieved. The central financing instrument of the Organic Strategy 2030 is the Federal Organic Farming Scheme (BÖL). The BÖL promotes training and information services as well as research projects on the production, processing, and marketing of organic products. The BÖL budget amounted to 36 million euros in 2024.
The willingness of farmers to convert to organic farming requires financial planning security and reliability. The German government's goal of achieving a 30 percent share of organic farmland in Germany depends largely on securing sufficient funds for organic farming. It is therefore up to European and German agricultural and environmental policy makers to ensure that sufficient resources are allocated to the second pillar of agricultural policy and that the federal and state budgets provide the necessary funding to give greater support to environmental protection in agriculture.