Why investors and farmers are betting on organic agriculture

"For decades, the discussion around organic farming has centered on important tenets of sustainability, environmental health, animal welfare, and a vision for food that heals rather than harms. But in America's fields today, a different conversation is taking root and is grounded in profits. With new economic data and over 40 years of side-by-side comparisons between organic and conventional systems, we can now confidently say that organic is no longer just a values-driven choice; it's the most profitable model available to U.S. farmers."

"At Rodale Institute, the latest Economics of Organic report examines farm-level data across crops, regions, and production systems. The findings show diversified, certified organic farms consistently outperform conventional operations on net income, even when organic yields are modestly lower. In a sector squeezed by volatile input prices and climate risk, organic offers what farmers rarely get: predictable premiums and stronger long-term margins."

"How is this possible? Organic corn, wheat, and soybeans earn price premiums ranging from roughly 145% to 250% over conventional counterparts, according to FINBIN data gathered between 2016 and 2020. Even after accounting for higher labor and management costs, organic producers net significantly more income per bushel. In many cases, conventional production results in a net economic loss, while organic systems remain profitable."

Organic farming has shifted from a values-driven choice to the most profitable model for U.S. farmers. Diversified, certified organic farms consistently outperform conventional operations on net income across crops, regions, and production systems. Organic price premiums for corn, wheat, and soybeans range roughly 145% to 250% over conventional counterparts, according to FINBIN data from 2016–2020. Higher labor and management costs are often offset by stronger per-bushel income and predictable premiums. Over more than 40 years, side-by-side research from the Farming Systems Trial shows organic yields become comparable while reducing exposure to volatile fertilizer and chemical input costs. The organic market exceeds $70 billion annually.

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