Demand Spurs Farmers to Consider the Organic Option

By Lorrie Baumann

American consumer demand for fresh, organic produce is creating the market that’s encouraging more farmers to convert land to organic production, according to Laura Batcha, Executive Director of the Organic Trade Association, and John Reganold, Regents Professor of Soil Science & Agroecology at Washington State University. “I’m hearing from a lot of the certifiers focusing on farm level operations that 2015 was their biggest year ever for new applications. There is an awareness of the supply crunch,” Batcha said. “There are produce companies that are going out and talking to farmers about transitioning because they do need the supply of organic.”

Consumer demand for organic produce has been growing rapidly, and the result has been that the U.S. has become a net importer of organic produce. The available trade data suggests that we’re importing produce during the winter season when it’s not available within the U.S., Batcha said. The exception to that is tropical products like bananas and mangoes, which can’t be grown in the mainland U.S. Coffee is the organic crop that’s most commonly imported into the U.S.

The United States is also a major importer of organic corn and soy livestock feed. “We’re relying on overseas production that could be done in U.S. except that we don’t have the growers,” Batcha said.

On the other hand, American organic farmers are also finding new markets outside the U.S., especially for products like carrots and apples, and the value of those exports to a world that’s hungry for organic produce is helping keep those farmers in business. “The U.S. is a major supplier of fresh fruits and vegetables to the world, and the world is looking for organic products,” Batcha said. “The exports really do help with profitability. They tend to be able to get a premium, … and that helps to sustain the industry.”

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The Organic Trade Association is encouraging more American farmers to convert their land to organic production to meet the demand and is experiencing some success, although most of that is coming from younger farmers. The average American farmer, though, is about 58 years old. “There are a number of reasons for that. Farmers get more resistant to change once they reach about 40,” Reganold said. “To change a system from conventional to organic might happen more with younger people. Organic farmers tend to be younger, and maybe that reflects young people being more willing to change…. When I talk to organic, conventional, or other farmers, that issue comes up: we need more young people. Getting young people involved is not easy.”

“We’ve been talking about the supply issue for about a year and a half now. I’m at the point where I’m starting to feel a little hopeful. We’ve seen a lot of innovative partnerships happening within the supply chain to encourage farmers to go organic,” Batcha added. “Farmers are embracing a lot of different models in agriculture – organic being one of them. Younger folks are open to new ideas, and they’re experimenting. The desire is there for the vocation and the lifestyle, but there’s also the desire and the expectation to actually make a living doing it. Organic provides the opportunity to create a different financial model to get through that succession. We’re just going to see more of it.”

One obstacle is that transitioning land from conventional to organic production is a three-year process that involves compliance and documentation for a whole new set of regulations. “It takes time because you have to document and you have to answer questions for certifications,” Reganold said. He added that, despite the headaches of dealing with the rules, he’s finding more farmers who are committed to a process that offers benefits for their soils as well as a future for their farms. “A lot of us are anti-regulation – we have farmers who want to regulate themselves,” Reganold said. “[They’re saying,] ‘It’s okay to check my records.’”

“The success rate goes up dramatically for farmers who have a support system for knowledge transfer. Organic systems are more information intensive. If you’re going from conventional to organic, you’re losing the arsenal of chemicals and you have to learn how to manage without that. Your weed environment might change, your disease environment might change. You have to plan ahead because you don’t have instant solutions to the problems that come up,” Batcha said. “The imbalance between supply and demand always comes with a lag, particularly in agriculture, where you can’t accurately forecast three years out. We’re going to live in an environment when you’re short or long. We’re really trying to prepare now for new policies that can support growers when they’re transitioning. We seem to have gotten the attention of USDA [U.S. Department of Agriculture] on that issue.”