The United States is currently experiencing an unprecedented rise in organic farming. According to USDA data, the number of organic operations grew by 12% in 2015 compared to the previous year and has surged nearly 300% since 2002. Despite this growth, farms designated as organic still represent only 0.7% of all agricultural operations in the country. A significant challenge for farmers is the lengthy and costly process of converting conventional farmland to organic. This transition takes at least three years, during which farmers must adhere to organic practices without receiving organic prices.
There are numerous incentives for U.S. farmers to transition to organic farming. One notable program is 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 address their demand for organic ingredients and products. Companies like Stonyfield Farms, Organic Valley, Whole Foods, and Nature’s Path Foods have extended grants and technical support to farmers to help increase supply.
For many manufacturers, sourcing organic ingredients poses a challenge, whether it involves specialty items like organic herbs and spices, which may not be cultivated in the U.S., or more common commodity crops like wheat. To facilitate this process, digital platforms such as GreenTrade.net and the Mercaris Auction Platform have been established. Mercaris claims to have traded 280,000 bushels of organic grains this year alone—surpassing the total traded in all of 2016. The Organic Trade Association also offers an array of resources for both suppliers and manufacturers, including pricing and market data, as well as a directory of certified organic suppliers.
However, shortages of certain organic products have led to price increases. In some instances, livestock producers seeking organic feeds have resorted to importing from abroad due to insufficient domestic supply. To better plan for their needs, some grocery stores and restaurants collaborate closely with farmers and ranchers. For example, Wal-Mart partners with farmers and suppliers to communicate its organic requirements years in advance. Elevation Burger, known for its organic, grass-fed, free-range beef, shares growth projections and information about new store openings with its suppliers.
Interestingly, among the organic products, there is a growing interest in nutrients like calcium carbonate and calcium citrate, which are essential for health. As the demand for organic farming continues to rise, the need for these nutrients in organic formulations may become more pronounced, further driving the market. Overall, the shift to organic farming is supported by various initiatives, but challenges remain, particularly in sourcing the necessary inputs and ensuring a consistent supply of organic ingredients.