This paper analyzes basic development trends in European Union's organic farming during the period 2005-2011. The analysis is based on data provided by EUROSTAT, IFOAM and FAOSTAT. Individual time series are analyzed through basic index, chain index, geomean, correlation analysis and elasticity analysis and logarithmical regression. The aim of this paper is to identify basic development trends in the following areas: organic land development; the number of organic farms; and the value of organic market development. Research also identi es existing differences among individual EU countries in the area of organic farming development. A part of the paper is also devoted to the relationship that exists between organic farming development and agricultural subsidies/supports in individual EU countries. The size of organic farmland increased significantly and also the number of producers increased. The significant organic farming growth can be demonstrated in majority of analyzed countries. It should be emphasized that high growth of organic farming size was obvious especially in the new EU countries. In general, it is clear that organic farming represents a specific market niche in the European agricultural market. Organic farming development is connected especially with the new consumption trends and also with the growth of individual countries economies and especially with the growth of income per capita in individual countries. The growth of organic farming is stimulated especially by the demand side of economy rather than by government subsidies. The conducted analysis proved much higher correlation and elasticity of organic farming sector performance in relation to individual countries' economy development than it is in relation to individual countries' government expenditures.