ORGANIC CROPS ARE COMPETITIVE WITH CONVENTIONAL SYSTEMS, NEW WALLACE
INSTITUTE REPORT CONCLUDES
Farm profits from organic cropping systems can equal or exceed profits from
conventional rotations in the midwestern United States, according to a new
study by the Henry A. Wallace Institute for Alternative Agriculture. This
central finding from the Institute's report, "The Economics of Organic
Grain and Soybean Production in the Midwestern United States," is
consistent with the recent increase in midwestern (and national) acreage
under organic production.
There has been dramatic growth in the U.S. and worldwide in the production
of and demand for organically produced food and fiber. In addition, a
growing number of consumers have been willing to pay premium prices for
organic products, which has induced processors, in many cases, to pay
premiums to farmers for organic grains. Nonetheless, the study found that
premiums are not always necessary for organic systems to outperform
conventional systems.
To help farmers, policy-makers, and others to better understand the
profitability of organic agriculture, Rick Welsh, Wallace Institute policy
analyst, analyzed a set of diverse academic research studies comparing
organic and conventional grain cropping systems. Following a comprehensive
review of the "best science" available on the subject, Dr. Welsh provides
an assessment and summary of the conditions under which growing organic
crops is profitable.
When organic systems were more profitable than conventional rotations, it
was due to one or more factors, including:
--lower production costs;
--higher net returns for crops grown in the organic rotations; and
--drought hardiness, allowing higher performance in drier areas or during
drier periods.
Beyond the economic benefits of organic systems in the U.S. Midwest, there
are potential health benefits provided to farm-level workers and the
natural environment. According to the report, "[g]iven the potential
economic, health, and environmental benefits of organic production, a
greater public policy commitment in research, investment, and education is
needed." The author concludes with recommendations for state and federal
agencies and private sector firms to advance organic agriculture.
Copies of "The Economics of Organic Grain and Soybean Production in the
Midwestern United States" are available for $15 each from the Wallace
Institute, 9200 Edmonston Rd., #117, Greenbelt, MD 20770-1551. The report
is also available online at the Institute's Web site, http://www.hawiaa.org.
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The Henry A. Wallace Institute for Alternative Agriculture is a nonprofit,
tax-exempt research and education organization established in 1983 to
envourage and facilitate the adoption of low-cost, resource-conserving, and
environmentally sound farming systems.
Henry A Wallace Institute for Alternative Agriculture
9200 Edmonston Rd Ste 117
Greenbelt MD 20770-1551
Phone: 301-441-8777
Fax: 301-220-0164
Web site: www.hawiaa.org
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