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  M158 Choosing Organic

Vs. Conventional arming

Farm Management Library

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MAIN IDA!

• How can I decide if organic farming would

be better for my operation?

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"hy the interest in organic

#arming$

• One of fastest-

growing segments

of U.S. agriculture• Consumer concerns

about pesticide

contamination offood

Staff photo by Nancy Crombie.

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Legislative controls!

• 1! " Organic #oods $roduction %ct set

national standards for organically

produced commodities• &!!& " US'% fully implemented an

organic certification program and issued a

certified US'% Organic food label.

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Mar%eting is %ey &

• Organic farming is essentiallya nic(e mar)et business.

•  % segment of t(e pubic iswilling to pay premium pricesfor food t(at t(ey belie*e issafer to eat because of t(eway it (as been produced.

• +(e US'% sets standardsproducers must follow to uset(e certified US'% Organiclabel on a food product.

Staff photo by Nancy Crombie.

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De#ining 'certi#ie(

organic)

•  %n agricultural product t(at (as been grown andprocessed according to US'%,s national organicstandards and certified by a US'%-accredited

state or pri*ate certification organiation.• #armer or processor must first file an application

and be appro*ed by a certifying agent.•  %nnual inspections reuired

• $ro(ibits synt(etic pesticide use in cropproduction and reuires outdoor access foranimals in li*estoc) production.

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O##icial *+DA statement!

/(at is organic food?• 0Organic food is produced by farmers w(o

emp(asie t(e use of renewable resources and t(e

conser*ation of soil and water to en(anceen*ironmental uality for future generations.Organic meat poultry eggs and dairy productscome from animals t(at are gi*en no antibiotics orgrowt( (ormones. Organic food is produced

wit(out using most con*entional pesticides2fertiliers made wit( synt(etic ingredients orsewage sludge2 bioengineering2 or ioniingradiation.

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O##icial *+DA statement!

/(at is organic food? 3continued4• 56efore a product can be labeled ,organic, a

7o*ernment-appro*ed certifier inspects t(e farm

w(ere t(e food is grown to ma)e sure t(efarmer is following all t(e rules necessary tomeet US'% Organic standards. Companies t(at(andle or process organic food before it gets toyour local supermar)et or restaurant must be

certified too.0

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"hat abo,t sa#ety an(

n,trition$

• +(e US'% does not claim t(at organically

produced food is 0safer or more nutritious0

t(an con*entionally produced food.• Organic food differs only in t(e way it is

grown (andled and processed.

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"hat abo,t costs$

• #ee for certification

• Cost of transition w(en costs are (ig(er

but products cannot be sold as organic• Some input costs will be (ig(er.

• Some input costs will be lower.

• 8ield may be lower.

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-o. to consi(er cost e##ects!

• Use farm records to ma)e an accurate

enterprise budget for your con*entional

operation.• 9stimate (ow organic farming met(ods

will c(ange t(ose costs.

• +(e transition period will be t(e mostdifficult and costly.

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val,ate yo,r mar%et!

• /ill premium pricesco*er your costs?

•  %re you good atmar)eting andnegotiating?

• /(at aboutcompetition?

• /ill prices stay (ig(? Staff photos by Nancy Crombie.

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/ottom line!

• +(e success of an

organic farm will

depend on being ableto find a reliable mar)et

t(at pays a (ig(

enoug( price premium

to offset t(e (ig(er cost

of organic production.

Staff photo by Nancy Crombie.

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 This presentation was produced and is copyrighted by Stewart- Peterson®, Inc. 2005. Permission is granted

for use by actie !g"d#et.com® subscribers. !$$ other use is prohibited.

ST"%!&T-P"T"&S'# and !(")#"T *'+ are registered trademars of Stewart-Peterson Inc

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