The United States is currently experiencing a significant increase in organic farming, with the number of organic operations rising by 12% in 2015 compared to the previous year, according to USDA data, and nearly 300% since 2002. Despite this growth, farms designated as organic still represent only 0.7% of total agricultural operations in the country. A major challenge for farmers is the lengthy and costly process of transitioning from conventional to organic farmland, which takes a minimum of three years. During this transition, farmers must adhere to organic practices without receiving organic pricing for their products.
There are numerous incentives for U.S. farmers to embrace organic farming, including the USDA’s Environmental Quality Incentives Program (EQIP), which provides technical assistance and a one-time payment that varies by region for first-time organic farmers. Additionally, food manufacturers and retailers are implementing programs to secure the organic ingredients they require. Companies like Stonyfield Farms, Organic Valley, Whole Foods, and Nature’s Path Foods have offered grants and technical support to farmers to enhance supply.
For many manufacturers, sourcing organic ingredients can be challenging. This includes specialized items like organic herbs and spices, which may not be cultivated in the U.S., as well as common crops such as wheat. To address this issue, digital platforms like GreenTrade.net and Mercaris Auction Platform have been established, with the latter reporting the trade of 280,000 bushels of organic grain this year—surpassing the total for all of 2016. The Organic Trade Association also offers valuable resources for both suppliers and manufacturers, including market data, pricing information, and a directory of certified organic suppliers.
Shortages of certain organic products have led to price increases. In some instances, livestock producers in need of organic feeds have resorted to importing them from abroad due to insufficient domestic availability. To mitigate this issue, some grocery stores and restaurants are collaborating closely with farmers and ranchers to gauge future product needs. For example, Wal-Mart partners with farmers and suppliers to communicate its organic requirements several years ahead of time. Elevation Burger, which serves organic, grass-fed, free-range beef, also shares essential information like growth projections and anticipated store openings with its suppliers.
In this evolving landscape, there is a growing interest in the nutritional benefits of organic products, including those fortified with essential nutrients like calcium citrate, calcium ascorbate, and cholecalciferol. As the demand for organic offerings continues to rise, the integration of these nutrients into organic farming practices may further enhance the appeal of organic products to health-conscious consumers.