Abstract
Organic agriculture seeks sustainable agriculture. Organic agriculture is based on circulating agriculture of a family farm unit. However, as of the end of 2016, only 33 out of the total organic farming farms were implementing Crop-Livestock cycling organic farming. The reason seems to be a matter of income after all. The optimal size combination refers to the scale by which family farms can maintain their quality of life while engaging in farming activities. In other words. it is a farm scale that maintains optimal income through stable labor costs. In the meantime, there has been no previous study on the optimal economical combination of Crop-Livestock cycling farming. Choi (2016) analyzed whether the economies of scope (EOS) were realized in the combined production by using the management data of the farmers who practiced Crop-Livestock cycling organic farming for four years. As a result, it has been revealed that the EOS measurement value is 0 or more so the economies of scope are being realized. Therefore, the purpose of this empirical analysis is to identify farm incomes under this circumstance. It is assumed that the optimum production is achieved by balancing the total income curve and the total cost curve in the optimal scale production range. The results of the analysis are as follows. First, the income after the conversion to Crop-Livestock cycling farming was 44,789,280 won, the sum of the seedling-livestock sector, which was 17,873,120 won higher when the non-Crop-Livestock cycling farming was assumed. The same is true for 2014 and 2015. The reason for this is that pig droppings were composted from organic seedlings, and the cost of selling pork was 150,000 won/per pig more expensive even though the manufacturing cost of organic feeds was higher than the purchasing cost. Secondly, this study simulated the result that the economic index varies when the farm size combination is changed by the farm size of 100% standard (S100) as of 2014. S130 is the increase in size from 100% of 2014, whereas S30 is the result of 3ha crop and 66 livestock (pigs). As a result of this simulation, Crop-Livestock cycling farming income decreased more than non-Crop-Livestock cycling farming as the farm size decreased, whereas the income decreased as the farm size increased. When the size was reduced below S50, the income tended to decrease. In this situation, EOS changed in the same direction. The results showed that when the farming size was reorganized and reduced to 50% compared to 2014, the income and income difference was the highest. At the same time, economies of scope (EOS) were the highest at 0.12985. In other words, it was found that the income of farm houses in a family farm unit sector was the best in the combination of 1.5ha crop agriculture and 110 livestock (pigs).