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Organic Agriculture

U.S. producers are turning to 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. At the same time, retailers are meeting growing consumer demand for organic food by offering a wider variety of organic products. ERS has research underway on the adoption of organic farming systems in the U.S. agricultural sector, procurement of organic products by intermediaries, and the demographic characteristics of organic consumers.


Spotlights

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.

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. New analysis of scanner data from 2004 finds that most purchasers of organic milk are White, high income, and well educated. Most organic milk is sold in supermarkets, and organic price premiums are large and vary by region.

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