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Going After Bigger Profits with Organic No-Till

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Going After Bigger Profits with Organic No-Till $15.95 Special No-Till Management Report No. 61 Going After Bigger Profi ts with Organic No-Till Tips for Using Cover Crops that 5 a Roller-Crimper Smother Weeds Made Possible with the Support of: mfg. 001_Cover_Organic Report_0619.indd 1 6/20/19 2:43 PM 002-003_Intro-Contents_Organic Report_0619.indd 2 6/20/19 2:43 PM Ringing in ‘Organic’ Growth for Your No-Till Operation f you’re no-tilling or strip-tilling, you because conventional farmers haven’t But the re-emergence of cover crops and probably understand the meaning of yet met the need. improved options for organic-friendly “learning curve” and the challenges Paul Hepperly, former research inputs has changed the game. Iof switching to a new farming practice. director at The Rodale Institute, This 32-page report shares data For most growers, the reward for told attendees at the 2019 National trends that lay out growth in the U.S. reducing or eliminating tillage, adding No-Tillage Conference that premiums organic market, and practical insights cover crops and improving soil health for organically grown soybeans were at and tips from three no-tillers and strip- has been worth the risk, with reduced $18 a bushel, compared to $9 for com- tillers who made the transition from fuel, labor and machinery costs, bet- modity soybeans and $25 for organi- conventional farming to organic and ter nutrient cycling, less erosion, and cally grown food-grade soybeans. how they tackled challenges like weed hopefully, a better bottom line. Doing the math, for 50-bushel soy- control without herbicides. But getting a fair price for what beans that’s $900 in gross profit per acre This report also provides leads on you’re producing is also important. compared to $454 for commodity beans. where to find potential funding and tech- Since corn and soybean prices have “If you want to grow tofu organic soy- nical assistance for converting farm acres declined from historic highs, many beans in a no-till system, this is something to organic methods. growers are struggling to stay in the that can immediately start increasing your In addition, there’s a roundup of black despite their best efforts. bottom line,” Hepperly says. naturally-sourced fertilizers, pesticides Quite frankly, many farmers are But there’s a process to follow, and soil amendments as well that could going broke just hauling grain to the Hepperly notes. The certified organic sys- be part of an organic operation. elevators and barely getting more than tem is based on having no restricted prac- We hope this report will help you the cost of production out of it. tice for a period of 3 years. map out a smooth transition to organic Meanwhile, demand for organic Growers will have to plan how to get no-till production and help make your products has been skyrocketing in the there and line themselves up with a certi- farm operation more profitable in the U.S., in part because of increased con- fying agency. They must also develop a long run. sumer awareness and concern about farm plan that can be implemented — and food sources. detailed record keeping is a must. Sincerely, One organization estimates the U.S. No-Till Farmer editors have been organic food market is growing at more tracking increased interest from read- than 20% per year. Yet in 2017, the ers and conference attendees in organic U.S. had to import 75% of its organic no-till methods — two practices once soybeans and 50% of its organic corn thought to be somewhat incompatible. John Dobberstein, Senior Editor In This Special Report: Produced by No-Till Farmer… Serving no-tillers since 1972. Copyright 2019 by Lessiter Media. All rights reserved. P.O. Box 624, Brookfield, WI 53008-0624 Phone: (800) 645-8455 (U.S. and Canada only) or (262) 782-4480 • Fax: (262) 786-5564 • E-mail: [email protected] • Website: www.No-TillFarmer.com No part of this publication may be reprinted by any means without the written permission of the publisher. www.No-TillFarmer.com Special No-Till Management Report No. 61 pg. 3 002-003_Intro-Contents_Organic Report_0619.indd 3 6/20/19 2:43 PM Demand for Organic Food Skyrocketing in U.S., Globally Premiums paid to farmers for organic grains could make adoption of this system a more profitable choice for no-tillers and strip-tillers. By John Dobberstein, Senior Editor Why the Shift? has grown continuously since USDA Millennial households are leading established national standards for organ- or no-tillers and strip-tillers the charge among organic customers as ic production and processing in 2002. who’ve focused on purposeful, they push for transparency and integrity The USDA’s Certified Organic Survey responsible farm management in the food supply chain. But other gen- for 2016 showed U.S. farms and ranches Fand improving soil health, their invest- erations are also buying more organic sold $7.6 billion in certified organic com- ment may be coming at a key time, as products: 88% of American households modities in 2016, up 23% from $6.2 bil- organic production systems in the U.S. have bought organic food or beverages. lion the year before. Of 2016 sales, 56% and globally are poised for continued “Consumers are more focused on was for crops, and 44% was for livestock, growth in the coming decades. products that have some benefit to poultry and related products. The overall U.S. organic food mar- them,” Sarah Schmansky, a vice presi- Between 2015 and 2016, the number ket reached nearly $48 billion in sales in dent of growth and strategy at Nielsen, of organic farms in the country increased 2018, up 6% from the prior year and more told The Associated Press. 11% to 14,217, and the number of certi- than double the sales of a decade ago, says It doesn’t appear the demand for fied acres went up 15% to 5 million. the Organic Trade Assn. (OTA). organic food stuffs will wane anytime California, Wisconsin and New Organic acreage in the U.S. soon, especially as price premiums have York led the U.S. in the number of increased by 20% between 2011 and been falling as options multiply. certified farms, while Pennsylvania, 2018 and now totals more than 5 million Last year, organic food and beverages Iowa, Washington, Ohio, Vermont and acres, although that amounts to less than cost an average of $0.24 more per unit Minnesota also had significant numbers. 1% of the country’s total farmland. than conventional food, or about 7.5% Corn, soybeans and tobacco had sales Organic agriculture also continues more, according to Nielsen. That was hikes of at least 25% between 2015 and to grow across the globe, says Organic down from a $0.27, or 9%, premium in 2016, while hay registered 11%. Without Boundaries. Its 2018 study 2014. There is some variation, as the price pegged the worldwide organic sector premiums consumers pay for organic Certied Organic Farms at $90 billion and 178 countries report- milk, eggs and bread is much higher. ed organic farming activities. The U.S. Organic products are also much by Acreage Category is the leading market, followed by more widely available now than before. 1-9 acres: 2,818 Germany, France and China. Once confined to health food stores and 10-49 acres: 4,109 OTA recently proclaimed organ- high-end groceries like Whole Foods, ic food products are no longer a niche organic products are now highly visible 50-69 acres: 977 market. Laura Batcha, the organiza- in most mainstream stores. 70-99 acres: 1,467 tion’s CEO and executive director, says there was a notable shift in 2018 in the The Good Seal 100-139 acres: 1,477 mindset of those working in the organic Certified organic agriculture has also 140-179 acres: 1,024 sector toward collaboration and “activ- grown by leaps and bounds. According ism” to move the needle on the role to the USDA’s Economic Research 180-219 acres: 692 organic can play in sustainability and Service (ERS), the sale of certified 220-259 acres: 594 tackling environmental initiatives. organically produced goods has shown “Activism is a natural reaction from double-digit growth during most years 260-499 acres: 2,022 an industry that is really close to the since the 1990s. 500-999 acres: 1,335 consumer,” Batcha says. “When we are The U.S. had less than 1 million in an environment where government is acres of certified organic farmland when 1,000-1,999 acres: 773 not moving fast enough, the industry is Congress passed the Organic Foods 2,000 or more acres: 878 choosing to move to meet the consumer Production Act of 1990. U.S. consumer rather than get stalled,” Batcha says. demand for organically produced goods Source: Organic Trade Assn. pg. 4 Going After Bigger Profits with Organic No-Till www.No-TillFarmer.com 004-006_Market Outlook for Organic Farming_Organic Report_0619.indd 4 6/20/19 2:44 PM www.No-TillFarmer.com Special No-Till Management Report No. 61 pg. 5 004-006_Market Outlook for Organic Farming_Organic Report_0619.indd 5 6/20/19 2:44 PM Total U.S. Organic Sales & Growth, 2009–2018 CATEGORY 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Organic Food ($)* 21,266 22,961 25,148 27,965 31,378 35,099 39,006 42,507 45,209 47,862 Growth (%) 4.3% 8.0% 9.5% 11.2% 12.2% 11.9% 11.1% 9.0% 6.4% 5.9% % of Total Organic 92.2% 92.1% 92.0% 91.9% 91.9% 91.8% 91.6% 91.7% 91.6% 91.3% Organic Non-Food ($)* 1,800 1,974 2,195 2,455 2,770 3,152 3,555 3,866 4,151 4,589 Growth (%) 9.1% 9.7% 11.2% 11.8% 12.8% 13.8% 12.8% 8.8% 7.4% 10.6% % of Total Organic 7.8% 7.9% 8.0% 8.1% 8.1% 8.2% 8.4% 8.3% 8.4% 8.7% Total Organic ($)* 23,066 24,935 27,343 30,420 34,148 38,251 42,561 46,373 49,360 52,451 Growth (%) 4.6% 8.1% 9.7% 11.3% 12.3% 12.0% 11.3% 9.0% 6.4% 6.3% Source: Organic Trade Assn.
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