US: How to grow more organic grain

The organic grain production in the United States is growing, but not fast enough to meet the needs of the food industry and the expanding organic livestock industry. This is the result of a report released by the U.S. Organic Grain Collaboration, in partnership with the Organic Trade Association. The report describes the key barriers in expanding domestic organic grain production, and identifies specific industry solutions to overcome the hurdles.

A need of long-term contracts for farmers

The most eminent barrier is the risk associated with the high cost of transition and uncertain market guarantee at the end of the transition period. As an example, the report calculated the cash flow of a 2,500 acre farm transitioning to organic. The farm would lose $417,000 in the first two years before in the third year the profit would turn to $843,000.

On the basis of this example, it can be assumed that prices will remain the same over five years. “Something that has never been observed in the grain market”, the report states. So, for the grower it would be impossible to predict whether the organic prices at the end of the process will be high enough to justify the transition. As a way out of this problem the report recommends long-term contracts by the food industry.

Importance of increasing soil fertility

An organic farmer has to maintain and increae soil fertility and to suppress weed without using herbicides. Therefore, the production relies on “relatively complex rotations of grains, legumes, and forages”, the report states.

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“However due to higher per-unit-costs and a lack of markets for lower value rotation crops, farmers tend to grow more simplified corn-soy-wheat rotations.” On the long term, that will cause problems with weeds and soil fertility. The report suggests to develop markets for non-cash crops that increase soil fertility and suppress weed like forage crops or peas for feeding purpose.

New model “adaptive knowledge networks”

As third hurdle the report identified inadequate farm management resources: “There is a lack of crop advisors with organic management literacy to support farmers, and traditional extension programs do not serve organic production well.”

As a solution, the Organic Grain Collaboration suggests a new model of extension they are calling “adaptive knowledge networks”. These networks should “support farmers to learn and innovate together around solutions and research that has been adapted for regional conditions”.

Laura Batcha, CEO and Executive Director of the Organic Trade Association, underlined the necessity of collaboration in the organic supply chain: “This new information provides a roadmap to ensure and improve the future of organic grain production in the U.S.”, she said.