Study Claims Organic Crops Can Be Equally Profitable

July 26,1999

Organic cropping systems in the Midwest can be as profitable or even more profitable than most conventional rotations. The conclusion comes from a new report from the Henry A. Wallace Institute for Alternative Agriculture.

When organic systems were more profitable, it was due to one or more factors including lower production costs; higher net returns for crops in the organic rotation compared to those in the conventional rotation; and out-performance by drought-resistant organic systems over conventional systems in drier areas or during drier periods.

"Given the potential economic, health and environmental benefits of organic production, a greater public policy commitment in research, investment and education is needed," according to the report. U.S. policy commitments could mirror the efforts of several European governments, the report says.

Denmark has enacted financial support policies for organic farming, including information and marketing support and financial assistance. Sweden, through charges on fertilizer and pesticides, funds research into reducing and eliminating synthetic chemicals in agricultural production. The report concludes that work is needed on marketing aspects of organic agriculture.

Titled The Economics of Organic Grain and Soybean Production in the Midwestern United States, the report is available electronically on the Wallace Institute's web site at http://www.hawaiaa.org.