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 Organic farms have higher sales, but higher expenses 

Organic farms have higher sales, but higher expenses

05 Feb, 2010 09:57 AM
UNITED States organic farms and ranches have higher average sales but higher average production expenses than US farms overall, according to results of the 2008 Organic Production Survey released this week by the US Department of Agriculture’s National Agricultural Statistics Service.

The survey counted 14,540 US farms and ranches that were either USDA-certified organic or were exempt from certification because their sales totaled less than $5000.

These operations comprised 4.1 million acres of land, of which 1.6 million acres were harvested cropland and 1.8 million acres were pasture or rangeland.

While there were organic farms or ranches in all 50 states, nearly 20 per cent of the operations were in California.

California also led the nation in organic sales, with $1.15 billion – or 36pc of all US sales.

Nationwide, 2008 organic sales totaled $3.16 billion, including $1.94 billion in crops sales and $1.22 billion in sales of livestock, poultry and their products.

The nation’s certified and exempt organic farms had average sales and production expenses that were higher than those of US farms overall.

Organic operations had an average of $217,675 in sales, compared with $134,807 for all farms as reported in the 2007 Census of Agriculture.

Production expenditures averaged $171,978 per organic farm, compared with the nationwide average of $109,359 for all farms.

* Complete results of the 2008 Organic Production Survey are available here.

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Date: Newest first | Oldest first
So $45697 average annual profit for organic farmers vs $25448 average annual profit for all farmers. Costs are important, sure, but the bottom line makes organic farming look much more attractive than conventional.
Posted by austroplebia, 5/02/2010 12:46:37 PM
Organic farming's Achilles heel is that it is more fossil fuel dependant that "normal" agriculture.
Posted by Will, 5/02/2010 6:54:44 PM
In the words of Pauline Hanson, Will, "Please explain?"
Posted by rascal, 8/02/2010 9:27:38 AM
The data for organic farms is seriously distorted by their higher portion of retail sales vs wholesale. The proper place to compare results is at the end of the value chain so we can all see where the value is being added. The enhanced profit position is not in the switch to organics but rather, in the capture of a larger portion of the value chain. And it appears that retailing costs of the organic produce has not been included in "production expenditures" which further distorts the real picture.
Posted by Ian Mott, 8/02/2010 11:30:09 AM
Organic is better in every way, deal with it.
Posted by Get Real, 8/02/2010 12:37:17 PM
Dear Get real, these farmers have very real expenditure costs to weigh up to the huge commitment organic farming actually entails. At the end of the day the farmer must survive economically even if we are all reliant on what and how he does it. Perhaps the word should be more encouragement from the consumer with us educating them why this is important and the govt motivated to support these very vitally needed changes for human sustainability?
Posted by smeedy, 9/02/2010 5:18:56 AM
Organic is better for the environment, less diseases, healthier, tastier and better animal welfare, who cares how much it costs.
Posted by Get Real, 10/02/2010 12:09:06 PM
Organic grain uses plenty of diesel, deal with it.
Posted by grain farmer, 11/02/2010 7:29:27 PM
Commercial uses plenty of chemicals, deal with it.
Posted by Get Real, 12/02/2010 3:55:21 PM

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