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Paying Farmers to Go Organic, Even Before the Crops Come In
Key Excerpts from Article on Website of New York Times
Posted: July 17th, 2016
http://www.nytimes.com/2016/07/15/business/paying-farmers-to...
Companies cant get enough organic ingredients to satisfy consumer desire for organic and nongenetically modified foods. The demand for those crops outstrips the supply, leaving farmers like [Wendell] Naraghi racing to convert their land to organic production, an arduous and expensive process. Customers are asking for it, said Mr. Naraghi, who is in the process of transitioning 300 of his 3,000 acres of orchards this year. And we listen to our customers. The clamor for organic crops is so intense that major food brands, like General Mills, Kellogg and Ardent Mills, are helping to underwrite the switch. General Mills, for instance, recently signed a deal to help convert about 3,000 acres to organic production of alfalfa and other animal feeds. Ardent offers farmers a premium for crops grown on land while a farm transitions to organic. In the most recent government tally, in 2011, organic farmland, including that used for grazing, was less than 1 percent of crop land in the United States. But the consumer demand is accelerating the conversion process. Sales of organic products grew 11 percent last year to $43.3 billion, or roughly four times the growth in sales of food products over all. Sales would have been even higher had supply, particularly in organic dairy and grains, kept up with demand. As much as 20 percent of cropland in America could be organic in the next decade or so, but land suitable for transition is getting harder to come by.
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