This paper by Regionalwert AG explains how we can measure the value of small scale farming by the indicators that they have defined, using the principles of Schuhmacher (1973). Economics usually talks about if an activity is profitable or not in monetary terms, Schuhmacher in his work “Small is beautiful” (1973) provides information regarding the economic approaches that are meant to provide according to human needs and not their greed.
Regionalwert AG was established to address the above fundamental issue and to build a regional food system. Conventional financial accounting systems do not adequately consider the services that provide public goods. This disadvantages small and medium scale farms. Regionalwert AG aims to change this prevailing paradigm through its sustainability indicators. The indicators are both quantitative and qualitative, helpful to provide information about the financial accountability of agricultural enterprises.
Learn more about the work of Regionalwert AG here