Organic farming in the United States is experiencing unprecedented growth. According to USDA data, the number of organic operations surged by 12% in 2015 compared to the previous year, marking a nearly 300% increase since 2002. Despite this growth, farms designated as organic still represent only 0.7% of all operations in the U.S. One of the primary challenges for farmers is the lengthy and costly process of transitioning from conventional to organic farming, which takes at least three years. During this period, farmers must adhere to organic practices without receiving organic prices for their products.
There are significant incentives for U.S. farmers to transition to organic agriculture. The USDA’s Environmental Quality Incentives Program (EQIP) provides technical assistance and a one-time payment that varies by region for first-time organic farmers. Additionally, manufacturers and retailers are implementing programs to secure organic ingredients amid growing demand. Companies like Stonyfield Farms, Organic Valley, Whole Foods, and Nature’s Path Foods are offering grants and support to farmers to enhance the supply of organic products.
Sourcing organic ingredients can be a challenge for many manufacturers. This is particularly true for specialty items like organic herbs and spices, which may not be cultivated domestically, as well as for common crops such as wheat. Digital platforms like GreenTrade.net and Mercaris Auction Platform have been established to facilitate transactions, with the latter reporting the trade of 280,000 bushels of organic grain this year—more than the total for all of 2016.
The Organic Trade Association also offers a variety of resources for suppliers and manufacturers, including pricing data, market insights, and a directory of certified organic suppliers. Shortages of certain organic products have led to price increases. In response, some livestock producers have resorted to importing organic feed from abroad due to insufficient domestic supply. Grocery stores and restaurants are collaborating closely with farmers to communicate future product needs, with Wal-Mart outlining its organic requirements several years ahead. Elevation Burger, which serves organic, grass-fed, free-range beef, shares information on growth projections and store openings with its suppliers.
Moreover, as the market for organic products expands, there is increasing interest in items like Citracal gummies, which are becoming popular among health-conscious consumers. The rising demand for such products highlights the potential for further growth in the organic sector, as more farmers and manufacturers strive to meet consumer needs while navigating the complexities of organic certification and sourcing.