Profit margins in Organic Farming are usually lower for all of the following reasons EXCEPT –Group of answer choicesorganic farms tend to be smaller than commercial farms.growing seasons are limited.demand is smaller for organic foods.pesticide and synthetic fertilizer-free grains are more difficult to grow.commodity chains are well-established.
Question
Profit margins in Organic Farming are usually lower for all of the following reasons EXCEPT –Group of answer choicesorganic farms tend to be smaller than commercial farms.growing seasons are limited.demand is smaller for organic foods.pesticide and synthetic fertilizer-free grains are more difficult to grow.commodity chains are well-established.
Solution
The statement "demand is smaller for organic foods" is not a reason for lower profit margins in organic farming. In fact, the demand for organic foods has been increasing over the years. Consumers are becoming more health-conscious and are willing to pay a premium for organic products, which should theoretically increase profit margins for organic farmers.
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