June 7, 1999

Organic cropping systems can produce profits in the Midwest that equal or exceed those from conventional rotations, a new study says. The study, from the Henry A. Wallace Institute for Alternative Agriculture, also says premiums are not always needed for organic systems to outperform conventional systems even though consumers often are willing to pay more for the products.

Rick Welsh, Wallace Institute policy analyst, analyzed a set of diverse academic research studies comparing organic and conventional grain cropping systems. After a review of the "best science" available on the subject, Welsh provided an assessment and summary of the conditions under which growing organic crops can be profitable.

When organic systems were more profitable than conventional rotations, it was due to such factors as lower production costs, higher net returns for crops grown in organic rotations and "drought hardiness" -- allowing higher performance in drier areas or during drier periods.

Beyond the economic benefits in the Midwest, potential health benefits also were claimed in Welsh's report to farm workers and the natural environment. "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.

The report is available on the institute's web site at