No, in fact the European Union subsidizes organic farming for that very reason. The European Union subsidizes organic farming in order to account for externalities. Externalities are costs not directly accounted for in price markets and effect a party who is not involved in the original transaction. In the European Union they subsidize organic farming because the reduced use of water, reduced water contamination, and reduced soil erosion, reduced carbon emissions, increased biodiversity and so on. These things are seen as positive, beneficial externalities which are caused by organic farming. To summarize the difference between traditional organic farming and factory farming, organic farming is considered labor and knowledge intensive whereas factory farming is capital intensive, requiring more energy, water, and manufactured inputs.
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