The prevalence of organic farming in the United States is currently at an all-time high. 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 U.S. agricultural operations. A significant challenge for farmers is that transitioning from conventional to organic farming is both time-consuming and costly. The conversion process requires a minimum of three years, during which farmers must adhere to organic practices without receiving organic prices for their products.
There are numerous incentives for U.S. farmers to transition to organic farming, including the USDA’s Environmental Quality Incentives Program (EQIP), which offers 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 organic ingredients, as they face difficulties in meeting their demands. Companies like Stonyfield Farms, Organic Valley, Whole Foods, and Nature’s Path Foods have provided grants and technical assistance to help farmers increase supply.
Sourcing organic ingredients can often be a challenge for manufacturers, especially for specialty items like organic herbs and spices that may not be domestically grown, or mainstream commodities such as wheat. To facilitate this, digital platforms like GreenTrade.net and Mercaris Auction Platform have been established, with the latter claiming to have traded 280,000 bushels of organic grain this year alone—surpassing the total traded in 2016. The Organic Trade Association also offers valuable resources for suppliers and manufacturers, including market data, pricing information, and a directory of certified organic suppliers.
Shortages of certain organic products have led to price surges. In some instances, livestock producers, in need of organic feeds, have resorted to importing them from abroad due to insufficient domestic supplies. Several grocery stores and restaurants have collaborated closely with farmers and ranchers to forecast future product needs. For instance, Wal-Mart engages with farmers and suppliers to outline its organic requirements several years in advance. Elevation Burger, known for its organic, grass-fed, free-range beef, shares growth projections and store opening plans with its suppliers.
As consumers become increasingly health-conscious, companies like Walgreens are also tapping into the organic market, promoting products that include supplements like Walgreens calcium citrate D3. This trend reflects a broader move towards organic and natural options, further motivating farmers to embrace organic practices. The integration of such health-focused products into the market not only enhances consumer choice but also encourages the expansion of organic farming, which continues to evolve in response to growing demand.