For some farmers, switching to organic crops may seem daunting, but the price could be worth it.
Crop prices have been volatile, and the same is true in organic markets, said Dave Ross with Great Harvest Organics. While 2023 isn’t offering the $40 per bushel on soybeans seen at this time in 2022, the market is still showing strength at $21.90/bu. Aug. 24. Organic corn has held up better than soybeans, coming in at $9.51, down from $11.28 in 2022.
“Last year it felt like we were printing money on (organic) soybeans,” Ross said. “Forty dollars felt like a warm blanket. You know it won’t last, but I can still make money on $20 beans.”
Ross said those who farm organic crops are no stranger to volatility, particularly at those higher price levels. A long-term mentality is the best way to view some of these prices.
“If you figure in a rotation (with corn) and combine the two years together, I’m looking at roughly $30 per bushel. That’s not too bad for an average because I have to rotate out of them each year,” Ross said.
Organic acreage is expected to double by 2030 due to demand and the fact that 25-30% of organic supply is currently imported into the U.S.
“There’s good potential out there,” Ross said.
Much of the demand in the U.S. is based on the poultry industry, Watts said. Between now and 2029, she said an annual growth rate of nearly 7% in organic usage is expected.
“There was a dip in 2021 and 2022 due to avian influenza,” he said. “This market is going to go ahead and continue to grow. If you look at India, they are looking to spend lots of money on organic protein.”
More international demand comes in the form of soy oil, as other countries are using that for their cooking as opposed to butter or other ingredients used more often in the United States.
“That’s a missing market and one that can certainly be developed,” Ross said.
Other organic industries, such as dairy and pork, are also expected to be a big driver for organic crop demand as feed demands increase. That demand potential has caused acreage expectations for organic crops to rise significantly.
“We are looking at going from 350,000 acres to upwards of a million acres (for corn),” he said. “It’s an investment and it is worth it for the next 10 years. We are looking at 500,000 acres or even 800,000 acres in soybeans.”
For those looking to transition fields from conventional to organic, Ross said it often takes 36 months to get a field ready, but the market will be there at the end of that stretch.
“The demand will be there,” he said.
Organic cost-share program available
WASHINGTON, D.C. — The USDA will cover up to 75% of the costs associated with organic certification, up to $750 per category, through the Organic Certification Cost Share Program.
To participate in the program, businesses must obtain or renew their organic certification, complete an application and document their certification costs incurred Oct. 1, 2022 through Sept. 30, 2023.
Producers have until Nov. 1 to file applications. Contact your FSA office for details.
