Farmers often experience a decline in their yield when transitioning to an organic farming system.  Studies show that a decline in yield is typical during the first 3-5 years of transition, but then crops rebound to produce 90-95 percent of conventional produce yields.

Study shows that organic agriculture can be more profitable than conventional farming!

Researchers have been studying the sustainability and health benefits of organic vs. conventional agriculture for the past several years.  A new study from Washington State University took these studies a step further to examine profitability behind organic farming.

The team found that organic agriculture can actually be more profitable than conventional farming, as long as premiums for the crops are high enough.

Authors David Crowder and John Reganold, found 44 studies that examined the economics of organic and conventional agriculture for the past 40 years, and then analyzed the financial performance of organic and conventional farming.  The team examined 55 crops grown across five continents.

Organic crops cost more to grow and therefore the researchers examined the price premiums on these organic crops.  The study showed that organic farming provided farmers with a lower value when compared to traditional crops, but when the price premium for organic produce was applied, the organic crops and cropping systems had substantially higher value.

As a consumer, it is not uncommon to pay 32 percent more for organic produce, but the study found that if that price was just 5 percent more, organic farmers would break even with conventional farmers.  The goal of organic farmers is not to break even, but as with any business, the goal is profitability.

Currently, organic farming makes up 1 percent of global agriculture, but if organic agriculture expands, this would likely lower consumers costs.

The study also takes into account that labor costs for organic farming is 13 percent higher, though some of these costs are offset, since organic farmers are not spending money on chemical fertilizers and pesticides.