Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Economic analysis reveals organic farming profitable long-term

01.09.2011
Organic farming is known to be environmentally sustainable, but can it be economically sustainable, as well?

The answer is yes, according to new research in the Sept.-Oct. issue of Agronomy Journal. In an analysis of 18 years of crop yield and farm management data from a long-term University of Minnesota trial, an organic crop rotation was consistently more profitable and carried less risk of low returns than conventional corn and soybean production, even when organic prime premiums were cut by half.

Previous research has almost universally found the same thing: Organic farming practices can compete economically with conventional methods, says the current study's leader, Timothy Delbridge, a Univ. of Minnesota doctoral student in agricultural economics. However, these conclusions are mostly based on findings from short-term trials in small plots.

What sets the Minnesota study apart is both the large size of its experimental farm plots (165 feet by 92 feet) and the trial's longevity. "Doing an economic study like this, it's important to get as complete a picture of the yield variability as we can," Delbridge says. "So, the length of this trial is a big asset. We're pretty confident that the full extent of the yield variability came through in the results."

What gave organic production the edge wasn't higher crop yields, however; instead it was organic price premiums. In their absence, the net return from a 2-yr, conventional corn-soybean rotation averaged $342 per acre, compared to $267/ac for a 4-yr organic rotation (corn-soybean-oat/alfalfa-alfalfa), and $273/ac for its 4-yr conventional counterpart. When a full organic premium was applied, though, the average net return from organic production rose to $538/ac, significantly outperforming the conventional systems both in terms of profitability and risk. And organic production was still more profitable when the price premium was reduced by 50%.

Organic price premiums are often the main reason why farmers think about switching to organic production, Delbridge explains, which means they also often wonder what would happen if the premiums declined. It's for this reason that the researchers considered different premium levels (full, half, and none) in their analysis—not because they necessarily expect the premiums to go away anytime soon, he notes.

The cost of production was also a factor: The conventional 2-yr rotation had higher production costs on average ($198/ac) than either the 4-yr conventional rotation ($164/ac) or the organic one ($166/ac). The difference primarily came in weed management, Delbridge says. The price of purchasing chemical herbicides in the 2-yr conventional rotation exceeded the cost of controlling weeds mechanically in the organic system, leading to higher overall production costs in the conventional rotation, even though organic production involved more field operations, Delbridge adds.

Delbridge cautions that the analysis relied on organic yields from an experimental trial that sometimes exceeded the average yields actually achieved by organic corn and soybean producers in Minnesota. It also didn't consider the overhead and fixed costs of farming. He's now involved in a second project that is comparing the economics of organic and conventional production in a whole-farm system.

More importantly, he adds, "What we're looking at here are results between an established organic and an established conventional system. This research doesn't take into consideration the issue of the transition itself: how difficult or costly that may be."

Still, if growers can successfully weather the transition, the study offers convincing new evidence that the change will be a lucrative one over the long haul.

To receive a copy of the research article, please contact Sara Uttech: 608-268-4948, suttech@sciencesocieties.org.

A peer-reviewed international journal of agriculture and natural resource sciences, Agronomy Journal is published six times a year by the American Society of Agronomy, with articles relating to original research in soil science, crop science, agroclimatology and agronomic modeling, production agriculture, and software. For more information visit: www.agronomy.org/publications/aj.

The American Society of Agronomy (ASA), www.agronomy.org, is a scientific society helping its 8,000+ members advance the disciplines and practices of agronomy by supporting professional growth and science policy initiatives, and by providing quality, research-based publications and a variety of member services.

Sara Uttech | EurekAlert!
Further information:
http://www.agronomy.org

More articles from Agricultural and Forestry Science:

nachricht How much drought can a forest take?
20.01.2017 | University of California - Davis

nachricht Plasma-zapping process could yield trans fat-free soybean oil product
02.12.2016 | Purdue University

All articles from Agricultural and Forestry Science >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Traffic jam in empty space

New success for Konstanz physicists in studying the quantum vacuum

An important step towards a completely new experimental access to quantum physics has been made at University of Konstanz. The team of scientists headed by...

Im Focus: How gut bacteria can make us ill

HZI researchers decipher infection mechanisms of Yersinia and immune responses of the host

Yersiniae cause severe intestinal infections. Studies using Yersinia pseudotuberculosis as a model organism aim to elucidate the infection mechanisms of these...

Im Focus: Interfacial Superconductivity: Magnetic and superconducting order revealed simultaneously

Researchers from the University of Hamburg in Germany, in collaboration with colleagues from the University of Aarhus in Denmark, have synthesized a new superconducting material by growing a few layers of an antiferromagnetic transition-metal chalcogenide on a bismuth-based topological insulator, both being non-superconducting materials.

While superconductivity and magnetism are generally believed to be mutually exclusive, surprisingly, in this new material, superconducting correlations...

Im Focus: Studying fundamental particles in materials

Laser-driving of semimetals allows creating novel quasiparticle states within condensed matter systems and switching between different states on ultrafast time scales

Studying properties of fundamental particles in condensed matter systems is a promising approach to quantum field theory. Quasiparticles offer the opportunity...

Im Focus: Designing Architecture with Solar Building Envelopes

Among the general public, solar thermal energy is currently associated with dark blue, rectangular collectors on building roofs. Technologies are needed for aesthetically high quality architecture which offer the architect more room for manoeuvre when it comes to low- and plus-energy buildings. With the “ArKol” project, researchers at Fraunhofer ISE together with partners are currently developing two façade collectors for solar thermal energy generation, which permit a high degree of design flexibility: a strip collector for opaque façade sections and a solar thermal blind for transparent sections. The current state of the two developments will be presented at the BAU 2017 trade fair.

As part of the “ArKol – development of architecturally highly integrated façade collectors with heat pipes” project, Fraunhofer ISE together with its partners...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Sustainable Water use in Agriculture in Eastern Europe and Central Asia

19.01.2017 | Event News

12V, 48V, high-voltage – trends in E/E automotive architecture

10.01.2017 | Event News

2nd Conference on Non-Textual Information on 10 and 11 May 2017 in Hannover

09.01.2017 | Event News

 
Latest News

Helmholtz International Fellow Award for Sarah Amalia Teichmann

20.01.2017 | Awards Funding

An innovative high-performance material: biofibers made from green lacewing silk

20.01.2017 | Materials Sciences

Ion treatments for cardiac arrhythmia — Non-invasive alternative to catheter-based surgery

20.01.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>