TOWARDS SUSTAINABLE AGRICULTURE: ASSESSING THE ECONOMIC IMPACT OF ORGANIC FARMS IN MOLDOVA'S AGRICULTURAL SECTOR.

The Republic of Moldova has made significant strides in adopting organic farming practices, supported by government subsidies and strategic focus on market demand. This paper aims to analyze the economic performance of organic farms in Moldova and their impact on the sustainable development of the agricultural sector, using primary data collected from 63 organic farms benefiting from subsidies between 2020 and 2022. The agricultural sector in Moldova has experienced a gradual increase in cultivated land, with a noteworthy 9.5% dedicated to organic farming. Economically, farmers have seen substantial growth in income per hectare, credited to favorable climatic conditions and advanced technologies. Although organic farming contributes significantly, constituting approximately one-third of total income, conventional agriculture remains the primary contributor with two-thirds. The impact of subsidies from the National Fund for Agricultural and Rural Development is evident in farm development, as calculated profits per one lei of subsidy have surged from 1.51 to 10.43 lei in 2022. This underscores the effectiveness of government support in fostering growth and development within Moldova's agricultural sector, emphasizing a positive trajectory for sustainable agricultural practices. [ABSTRACT FROM AUTHOR]