Organic farming is experiencing unprecedented growth in the United States. According to USDA data, the number of organic operations rose by 12% in 2015 compared to the previous year, marking an impressive increase of nearly 300% since 2002. Despite this growth, organic farms still represent only 0.7% of all agricultural operations in the U.S. A significant challenge faced by farmers is the lengthy and costly process of transitioning from conventional to organic practices. This conversion requires a minimum of three years, during which farmers must adhere to organic standards without receiving the premium prices associated with organic products.
There are numerous incentives encouraging U.S. farmers to transition to organic farming. The USDA’s Environmental Quality Incentives Program (EQIP) provides technical assistance and a one-time payment that varies by region to first-time organic farmers. Additionally, food manufacturers and retailers are implementing programs to secure the organic ingredients they need. Companies like Stonyfield Farms, Organic Valley, Whole Foods, and Nature’s Path Foods are offering grants and technical support to farmers, aiming to increase supply.
Sourcing organic ingredients poses challenges for many manufacturers, whether they are looking for specialty items like organic herbs and spices, which may not be produced domestically, or staple crops such as wheat. Digital platforms like GreenTrade.net and the Mercaris Auction Platform have emerged to facilitate these transactions, with the latter reporting the trade of 280,000 bushels of organic grain this year alone, surpassing the total traded in all of 2016. The Organic Trade Association also supports suppliers and manufacturers by offering resources such as pricing and market data, along with a directory of certified organic suppliers.
Shortages of certain organic products have led to price increases. In some instances, livestock producers have resorted to importing organic feeds because domestic supplies are insufficient. To address future demands, some grocery stores and restaurants collaborate closely with farmers and ranchers. For example, Wal-Mart partners with farmers and suppliers to outline its organic needs several years ahead, while Elevation Burger, known for its organic, grass-fed, free-range beef, shares growth projections and store openings with its suppliers, including plans for incorporating vitamin citrate into their product offerings. This collaboration not only helps stabilize the supply chain but also ensures that farmers can meet the rising demand for organic products.