Recent Study Finds Organic Farming is Profitable
The results of a 13-year long experiment in Iowa shows promising results for the economic potential of organic farming:
Organic crops fetch a premium price on the market and eliminate the need for expensive inputs like herbicides and synthetic fertilizers. As a result, they are far more profitable than conventional crops. Craig Chase, interim leader of the Leopold Center’s Marketing and Food Systems Initiative and extension farm management specialist, calculated the returns to management—that is, the money left over for family living after deducting labor, land and production costs—for both systems. He based his calculations on actual LTAR data from 1998 to 2004, as well as scenarios modeled with enterprise budgets.
Both methods gave the same result: On average, organic systems return roughly $200 per acre more than conventional crops.
In addition to its profitability, organic agriculture helps build healthy soils. While conventional LTAR plots receive synthetic herbicides, pesticides and fertilizer, organic plots receive only local, manure-based amendments. Total nitrogen increased by 33 percent in the organic plots, and researchers measured higher concentrations of carbon, potassium, phosphorous, magnesium and calcium. The results suggest that organic farming can foster greater efficiency in nutrient use and higher potential for sequestrating carbon.