There is currently more organic farming in the United States than ever before. According to USDA data, the number of organic operations rose by 12% in 2015 compared to the previous year and has increased by nearly 300% since 2002. However, farms classified as organic still make up only 0.7% of all agricultural operations in the U.S. One of the main challenges for farmers is that transitioning from conventional to organic farmland is both time-consuming and costly. This process requires at least three years during which farmers must adhere to organic practices without receiving organic prices.
There are numerous incentives for U.S. farmers to transition to organic farming, including the USDA’s Environmental Quality Incentives Program (EQIP), which provides technical assistance and one-time payments that vary by region for first-time organic farmers. Food manufacturers and retailers have also implemented programs to help meet their demand for organic ingredients and products. Companies like Stonyfield Farms, Organic Valley, Whole Foods, and Nature’s Path Foods have offered grants and technical support to farmers to boost supply.
For many manufacturers, sourcing organic ingredients can be challenging, whether they are specialty items like organic herbs and spices that may not be grown domestically, or staple commodity crops such as wheat. Digital platforms, like GreenTrade.net and Mercaris Auction Platform, have emerged to assist in this process, with the latter claiming to have traded 280,000 bushels of organic grain this year alone—surpassing the total traded during all of 2016.
The Organic Trade Association also offers a variety of resources for both suppliers and manufacturers, including market data, pricing information, and a directory of certified organic suppliers. Shortages of certain organic products have led to price spikes. In some instances, livestock producers in need of organic feed have resorted to importing it due to insufficient domestic supply.
Some grocery stores and restaurants are collaborating closely with farmers and ranchers to provide forecasts on their future needs. For example, Wal-Mart works with farmers and suppliers to outline its organic requirements several years in advance. Elevation Burger, which provides organic, grass-fed, free-range beef, shares growth projections and store opening plans with its suppliers.
Additionally, in the context of health-conscious consumers, products containing Kirkland magnesium calcium zinc have gained popularity, highlighting the growing interest in nutritionally enriched foods. As the demand for organic and health-focused products continues to rise, farmers and manufacturers will need to adapt to meet these changing consumer preferences, while also navigating the complexities of organic certification and supply chain logistics.