With more than 650 certified organic producers and 200 processors, Minnesota continues as one of the more rapidly growing states nationwide in the expanding world of organic agriculture.
“We congratulate you. Farm income is experiencing a roller-coaster ride yet your industry keeps growing,” Minnesota Agriculture Commissioner Gene Hugoson said at the mid-January Organic Food/Farming Conference in St. Cloud. He noted, in particular, the “networking” success among producers, processors and the consumer market. “You’re not bashful about telling your story and in this very competitive world of getting the customer’s attention, you do a great job.”
A growth market
According to the U.S. Department of Agriculture, since federal standards for organic production were established in 2002, annual growth has been a remarkable 20 percent but now slowing slightly because of the current economic recession. USDA data shows organic food sales reaching $15 billion, approximately 3 percent of total U.S. food sales. Organic foods traditionally carry a higher price tag thus with fewer dollars available, fewer purchases are happening.
Can the market get saturated? “At this stage, the market supply has not caught up with demand,” said Jim Riddle, University of Minnesota organic agriculture coordinator, pointing out that organic acreage is still less than 1 percent of total U.S. agricultural acreage.
He was instrumental in starting the Winona Farmers Market back in the 1980s which continues as a thriving market. His next move was 20 years as an organic inspector and becoming the founding chairman of the Organic Inspectors Association. He’s helped train organic inspectors throughout the world.
Today as part of his “outreach” effort, he helps coordinate project work at the Southwest Research and Outreach Center near Lamberton, which operates a 160-acre organic farm, one of the largest certified organic acreages at any land grant university in the nation. He also does several organic workshops around the state educating potential organic producers on how to get certified.
He noted strong consumer markets for organic fruits and vegetables, especially closer to the Twin Cities area and other larger cities. “So the potential keeps growing as more people become aware of organic food stores and farmer market outlets,” Riddle said.
Today there is widespread acceptance that organic farming practices help protect water quality and build soil quality leading to long-term sustainability of soils. With rotations being an important part of organic crop production, carbon sequestration has become another environmental benefit.
What’s in a name?
The USDA defines organic agriculture as “a production system that is managed to respond to site-specific conditions by integrating cultural, biological and mechanical practices that foster cycling of resources, promote ecological balance and conserve biodiversity.”
More specifically, organic farming means a reduction of external and off-farm inputs and elimination of synthetic pesticides and fertilizers and other materials, such as hormones and antibiotics.
Even though skeptics question the health benefits of organically produced foods, Riddle said there is growing evidence that organic foods consistently have higher nutrition values. “But more often it is the freshness, the taste and the overall eye appeal of organic foods that attracts, and usually keeps, consumers’ attention.”
He mentioned Europe where about 10 percent of their total agriculture is now organic and they’re not keeping up with market demand. “We’ve got a long way to go before saturation would become a real concern in America. Today we are importing from South America a lot of organic food, even soybeans. Yes, we grow lots of organic soybeans already. But if we are also importing, there could be even more organic production here.”
What happens when, as experts predict, the world population peaks at 9 billion — can organic farming keep up with the rapidly growing productivity of modern, trait-enhanced field crops?
Riddle said there is growing evidence at the SWROC, Iowa State University, the University of Wisconsin and other locations showing organic yields virtually comparable with conventional crops and generally better in drought years because of more efficient nutrient and soil moisture usage.
“You’ve built the organic matter of your soils so they act like a sponge retaining moisture. So jumping to the conclusion that there is an automatic drop in yield isn’t correct.”
The transition is not a quick and easy process. “It takes time to build the organic system. You can’t just drop the chemicals and think you’re organic or you’re going to have disaster. It takes good planning and good agronomic practices to make it work,” he said.
Yield, revenue tradeoff
Experienced growers advise newcomers to transition into organic one field at a time. And accept the premise of lesser yields and messier fields, at least during this two- to three-year transition period. The offset of fewer bushels is better prices which generates enough financial cushion to make organic production more profitable than conventional farming.
Higher revenue per acre also suggests fewer acres to “make it work.” Those lesser yields are temporary. Researcher Elizabeth Dyck at the SWROC, found that by the third year of transition, organic soybean and corn yields could match conventional yields, if those crops had been preceded by one to two years of a small grain/forage legume.
A transition experiment on Iowa farmland previously enrolled in the Conservation Reserve Program, found that soybeans grown organically had yields equivalent to county averages beginning the first year of transition.
Note this benefit: CRP land can be certified without the three-year waiting period if the producer can document that the land has received no prohibited materials. In this particular study, by the third year, the returns (not the yields) for the organic soybeans were 180 percent above conventional soybeans basically because market price for organic soybeans was about double the price for the conventional soybeans.
Not just better money
Most producers grow organic crops and raise livestock organically because they believe their methods mean a better environment, including a safer food supply.
“The main reason for us going organic was out of a stewardship ethic toward the soil, the earth and ultimately, for mankind,” said Alfrid Krusenbaum, a Wisconsin farmer who began the transition to organic corn, soybeans, wheat and alfalfa in 1990. Perhaps not surprising is the apparent fact that organic farming is tremendously appealing to younger people.
“At any organic conference we see lots of young families with kids. They’re excited. They’re optimistic. And they truly appreciate that they don’t have to deal with toxic chemicals. They see this as safer for their families, plus they can start small and work their way up,” Riddle said.
“The one thing that seems to be exciting lots of people, all ages, is high-tunnel gardening. It extends the season. You get high production from a small land area. We’ve had great results from our first year of high-tunnel gardening at Lamberton.”
This is one discussion topic at the SWROC March 6 field day.
“We’ve done some ‘cutting edge’ work at the station that demonstrates that with minimal investment, you can have good returns bringing fresh peppers and tomatoes to market in early July, nearly one month ahead of harvesting in outdoor gardens. High-tunnel gardening gives you high quality, yield and earliness. All those things give you a marketing advantage.”
Riddle emphasized the importance of having your markets lined up ahead of your organic production. “You obviously can’t take your production to the elevator. You need to plan your marketing in advance, whether you’re taking your produce to a local grocery store, a farmers market, or into the commercial markets. For certain enter organic farming with your eyes wide open.”
The organic world is knowledge-intensive — every day there’s new information to digest and opportunities to consider. Organic systems have the potential to lower crop production costs, reduce reliance on non-renewable resources, capture high-value markets, boost the agricultural economy and provide environmental protection.
Organic seed is now widely available. For example, Albert Lea Seed at Albert Lea offers organic seed in corn, soybeans, oats, wheat, barley, even peas and winter rye. Their pricing for corn varies from $112 to $177 per bag; soybeans are priced at $24 to $33 per bag. They also offer various organic seed treatments that provide seedling and season-long plant health enhancement.
For more information, log on to www.organicecology.umn.edu, or try the web community eOrganic.info where farmers, researchers and educators exchange experience, research and problem-solving challenges. The Minnesota Department of Agriculture provides a Directory of Minnesota Organic Farms with listings by county and also by organic food group. Call (651) 201-6012.
