Meeting Top Challenges of Producers - Innovations in Organic Research and Policy.

Consumer demand for organic food in the United States has outpaced domestic production since the late 1990s, and recent top retailer initiatives could further boost demand.  While adoption of organic systems in fruit, vegetable and other high-value, market-driven sectors continues to show steady growth, adoption for some field crops has stalled.  Recent analysis from USDA’s Economic Research Service shows that total production costs are significantly higher per acre for U.S. organic corn and soybean producers but price premiums make these organic operations more profitable than their conventional counterparts. These producers may face challenges other than profitability—such as the high managerial costs and risks associated with shifting to a new way of farming, limited marketing and technical infrastructure, the 3-year organic transition period, commodity crop price spikes, and the policy setting for these crops.

     USDA set a goal several years ago to increase the number of organic operations in the United States by 25 percent between 2009 and 2015, and the latest Farm Act supports USDA’s efforts to provide research, technical services, risk management and other support for organic farmers.  Some states are also initiating new policies and programs, such as Minnesota’s organic transition cost-share program, to improve support for organic producers. Increasing public and private interest in soil health, energy and climate may also help expand the organic research base, and drive research innovations such as organic no-till systems.