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USDA’s first Organic Production
Survey shows organic farming as a $3.2 billion business
By Agri-Pulse Staff
© Copyright Agri-Pulse Communications, Inc.
Washington, Feb. 3 – The nation’s organic farms and ranches
have higher average sales and higher average production expenses than U.S.
farms overall, according to results of the 2008 Organic Production Survey
released Wednesday by the U.S. Department of Agriculture’s National
Agricultural Statistics Service.
“This was USDA’s first wide-scale survey of organic producers, and it was
undertaken in direct response to the growing interest in organics among
consumers, farmers, businesses, policymakers and others,” Agriculture Deputy
Secretary Kathleen Merrigan said. She added that the survey will be “an important
building block for future program and policy development.”
The survey counted 14,540 U.S.
farms and ranches that were either USDA certified organic or were exempt from
certification because their sales totaled less than $5,000. 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 percent
of the operations surveyed were in California.
California also led the nation in organic
sales, with $1.15 billion – or 36 percent of all U.S. 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 U.S. 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. Accordingly, expenses averaged 79% of sales for organic
operations compared with 81% of sales for all farms as reported in the 2007
Census of Agriculture.
Most U.S.
organic producers sold their products locally, with 44 percent of sales taking
place less than 100 miles from the farm. Nearly 83 percent of organic sales
were to wholesale channels, including processors, millers and packers. Just
over 10 percent of sales were direct to retail operations, including
supermarkets. Only 7 percent of sales were direct to consumers, via farm
stands, farmers’ markets, community supported agriculture and other
arrangements.
Survey respondents indicated that they face various challenges, including
regulatory, production, management and marketing issues. Despite these
challenges, more than 78 percent indicated that they plan to maintain or
increase their organic production over the next five years.
Complete results of the 2008 Organic Production Survey are available at
www.agcensus.usda.gov/Publications/2007/Online_Highlights/Organics/.
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