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Briefing Rooms

Organic Agriculture

Contents
 

Overview

Organic farming has become one of the fastest growing segments of U.S. agriculture. U.S. producers are turning to certified organic farming systems as a potential way to lower input costs, decrease reliance on nonrenewable resources, capture high-value markets and premium prices, and boost farm income. Organic farming systems rely on ecologically based practices, such as cultural and biological pest management, and virtually exclude the use of synthetic chemicals in crop production and prohibit the use of antibiotics and hormones in livestock production. Many producers, manufacturers, distributors, and retailers specialize in growing, processing, and marketing an ever widening array of organic food and fiber products.

Features

Using Vertically Coordinated Relationships to Overcome Tight Supply in the Organic Market—A survey of certified organic handlers in the United States reveals that handlers widely use contracts as a means to not only procure needed ingredients but also to develop and maintain strong working relationships with their suppliers (10/08).

Bottled organic chocolate milk from trickling springs dairy.The U.S. Organic Handling Sector in 2004: Baseline Findings of the Nationwide Survey of Organic Manufacturers, Processors, and Distributors—This report presents findings from an ERS survey of certified organic intermediaries, and presents a baseline of their marketing and procurement practices in 2004. A large share of firms handles both organic and conventional products, most are small firms, and more than three-quarters are independent (5/08).

USDA research plot in California.U.S. Organic Agricultural Production in 2005—In 2005, for the first time, all 50 States in the U.S. had some certified organic farmland. This data set provides information on organic operations and acreage for crops and livestock (over 40 commodities), with some tables dating back to 1992. Data for 2000-2005 also include the number of certified operations, by State (12/06).

Organic handlers.Procurement and Contracting by Organic Handlers—Provides select results from the 2004 Nationwide Survey of Organic Manufacturers, Processors, and Distributors. The survey covered a variety of topics related to the procurement and contracting of organic products and ingredients. Data are available on 9 commodity groups, such as fruit and nuts, and 45 commodities. The procurement data include information from 1,038 facilities; the contracts data include information from 686 facilities that use contracts (11/07).

Organic Demand: A Profile of Consumers in the Fresh Produce Market pdf—The study analyzes Nielsen Homescan data from 2001 and 2004 to determine the characteristics of organic consumers, what they buy, how much they spend, and the price premiums they pay for organic produce (4/07).

Retail and Consumer Aspects of the Organic Milk Market—Consumer interest in organic milk has burgeoned, resulting in rapid growth in retail sales of organic milk. Most organic milk is sold in supermarkets, and organic price premiums are large and vary by region (5/07).

Soybean field (USDA photo by Dave Warren)Soybean Production Costs and Returns from the 2006 ARMS—USDA's 2006 ARMS survey collected information about the production practices and costs of soybean growers in 19 States (representing over 97 percent of U.S. planted soybean acres). A set of estimates is now available from the survey that presents costs and returns for 2006 by region and size of operation for all soybean producers and for conventional and organic producers for regions and size groups with sufficient sample for statistical reliability. For more information about these soybean cost and return estimates, see The Profitability of Organic Soybean Production.

Organic dairy cowMilk Production Costs and Returns in 2005—USDA's 2005 Agricultural Resource Management Survey (ARMS) included a sub-sample of organic dairies and collected detailed information about the production practices and costs on dairy farms in 24 States representing over 90 percent of national milk production. Estimates of milk costs and returns are available from the survey for 2005, by State and size of operation for all milk producers and for conventional and organic dairies.  For more information, see the report A Comparison of Conventional and Organic Milk Production Systems in the U.S. (5/07).

Organic Poultry and Eggs Capture High Price Premiums and Growing Share of Specialty Markets—Organic poultry and egg markets in the United States are expanding rapidly. This report examines trends in markets, animal numbers, and prices. Price comparisons between organic and conventional show significant organic price premiums for both broilers and eggs (12/06).

Organic Agriculture: Innovations in Organic Marketing, Technology, and Research—Symposium Proceedings of a workshop held October 2005 at ERS, on the Plant Management Network website. The workshop examined producer options and obstacles, market growth, educational resources, benefits assessment, and research opportunities (9/06).

EU and U.S. Organic Markets Face Strong Demand Under Different Policies—Many European Union (EU) countries have "green payments" available for transitioning and continuing organic farmers. By contrast, the U.S. Government has largely taken a free-market approach to the organic sector. Despite the different approaches, both regions have large retail markets for organic foods. For the full report, see Market-Led Growth vs. Government-Facilitated Growth: Development of the U.S. and EU Organic Agricultural Sectors (2/06, 8/05).

Price Premiums Hold on as U.S. Organic Produce Market Expands—Price premiums for organic products have contributed to growth in certified organic farmland and, ultimately, market expansion. This article explores price premiums and market margins for a limited set of fresh produce items—carrots, broccoli, and mesclun mix (5/05).

Recommended Readings

Organic Produce, Price Premiums, and Eco-Labeling in U.S. Farmers' Markets—The popularity of farmers' markets in the United States has grown concurrently with organic production and consumer interest in locally and organically produced foods. This research describes the significance of farmers' markets as market outlets for many organic farmers, and recent shifts in relationships between organic growers, market managers, and customers (4/04).

Recent Growth Patterns in the U.S. Organic Foods Market—As consumer interest in organic foods continues to gather momentum in the U.S., many firms are specializing in growing, processing, and marketing an ever-widening array of organic products. This report provides economic research on recent growth patterns in the U.S. organic sector, by market category, and a description of the marketing channels for major organic commodity groups. It summarizes USDA research, regulatory, and other ongoing programs on organic agriculture (9/02).

U.S. Organic Farm Sector Continues to Expand—Organic agriculture is expanding rapidly in the United States, as consumer interest continues to gather momentum and new organic production and marketing systems evolve. This article looks at changes in organic crop acreage from 1997-2003 (Amber Waves, 3/06).

See all recommended readings...

Recommended Data Products

U.S. Organic Agriculture, 1992-2005—Newly revised, this product updates USDA estimates of U.S. organic acreage and livestock numbers to 2005. Data are presented by State and commodity for 1997 and 2000-2005 (12/06).

Organic Farmgate and Wholesale Prices—Provides farmgate and wholesale prices for select organic and conventional produce items for the Boston and San Francisco markets for 1995-2006. New data also include price comparisons between organic and conventional broilers and eggs (2004-2007) and price data for organic grains and feedstuffs (3/08).

Procurement and Contracting by Organic Handlers—Provides select results from the 2004 Nationwide Survey of Organic Manufacturers, Processors, and Distributors. The survey covered a variety of topics related to the procurement and contracting of organic products and ingredients. Data are available on 9 commodity groups, such as fruit and nuts, and 45 commodities, such as berries and citrus. The procurement data include information from 1,038 facilities; the contracts data include information from 686 facilities that use contracts (11/07).

Related Links

Agricultural Marketing Service, National Organic Program—National standards that govern the marketing of organically produced agricultural products.

OECD Workshop on Organic Agriculture—The Organization for Economic Cooperation and Development (OECD) recently published the Proceedings of a workshop that was hosted by the USDA examining the economic, environmental and social impacts of organic agriculture in relation to "integrated" and "conventional" farming systems.

See all related links...

Maps and Images Gallery

Maps of organic producers and organic handlers by zip code

Certified Organic Handling Facilities in the U.S., 2004

New organic product introductions and sales of organic food

Organic Agriculture Posterpdf

U.S. certified organic farmland and operations by State, 2005

Top States with certified organic crops in 2005

Distribution of farmers' markets across the United States

Demand for organic products in 210 U.S. farmers' markets

 

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For more information, contact: Catherine Greene (farming) Carolyn Dimitri (marketing)

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Updated date: October 30, 2008