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Rewarding failure in the organic sector of US agriculture

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July 22, 2009

Source: GMObelus - Peer-reviewed news in the field of agricultural biotechnology

Despite the dismal performance of the "organic" sector of US agriculture, efforts to make it look healthy and productive continue. A new report by the US Department of Agriculture (USDA) casts light on this problem. The report, titled "Emerging Issues in the US Organic Industry", chronicles the perennial failure of what is obviously an unsustainable set of food production practices. The US Congress is considering financial incentives to increase this kind of farming.

According to the USDA, organic farmers identified lack of consumer demand as a major marketing problem during the early 1990s. The problem was so acute that organic farmers frequently sold organic products into conventional markets.

The organic industry determined to remedy the lack of consumer demand through a vigorous campaign to demonize mainstream food producers and conventional agriculture.

The campaign has been successful. "Are farmers the new villains?" asks Matt McKinney of the Minneapolis Star Tribune, who adds that "conventional farmers already have seen their public persona trashed by bestselling depictions of conventional farms as places that abuse the land and the animals while producing food of low nutritional quality."

There's another measure of the dubious success of demonizing modern food production: according to the USDA, organic farmers in the US are now unable to keep up with demand.

Those who view this as a positive development are more than happy to exaggerate it. According to the new report, "[o]rganic food sales increased from $3.6 billion in 1997 to $21.1 billion in 2008". No effort is made to factor in the inflation of the US dollar during the period, nor the impact of organic farmers inflating the price of products they no longer had to pass off as "conventional".

The use of dollar figures to exaggerate the growth of the organic industry becomes apparent when the growth is expressed, instead, in acres. During the same period, the acres devoted to organic agriculture merely doubled -- to 0.5 percent of US crop land and 0.5 percent of pasture land.

Anyone inclined to interpret this as a vast increase in the per-acre productivity of organic farming over that period should bear in mind that this cannot represent technological advances. Organic farmers are prohibited from using modern methods, or adopting new ones. Indeed, the Cornucopia Institute, which claims to represent organic agriculture, regularly files legal actions against organic producers whose practices look too modern -- or too productive.

The lack of organic farm productivity is just as much at fault as the successful demonization of modern agriculture for creating the supply/demand imbalance. Retailers who want to cash in on the "land and animal abuser" marketing strategy are finding that organic farmers simply can't produce very well.

This is fairly obvious in the dairy sector. The USDA reports:

The growth hormone rbST is not available to organic producers, but was used by 17 percent of conventional operations, who also were much more likely to utilize regular veterinary services and a nutritionist. [em added] The use of these practices likely contributed to the significantly higher production per cow on conventional versus organic operations. Organic operations averaged about 13,600 pounds of milk per cow in 2005, versus nearly 19,000 pounds on conventional operations.
The problem: to be considered "organic", cows must be denied adequate health care, and are fed substandard diets to reduce feed costs. The neglect of organic cows in need of medical care, and the concomitant loss in milk quality and production, are seldom mentioned--but they are well-documented.

The inability of organic farmers to use modern methods has other impacts, as the report makes clear. Without access to modern low-till/no-till technology, organic farmers must burn more gasoline and diesel for mechanical tillage, and rely more heavily on manual labor.

These costs, coupled with the use of low-producing seed, add up to a dismal situation. According to the USDA:
Average organic soybean yield was lower than that of conventional producers (31 versus 47 bushels per acre), partly because food-grade soybeans produce lower yield than feed-grade soybeans. Average costs for producing organic soybeans were as much as $6.20 per bushel higher than conventional production in 2006, after accounting for the influence of other factors on production costs, including organic transition costs.
A rational assessment of the poor performance of organic farming, compared to conventional farming, is enough to persuade some organic farmers to make reasonable choices.
The yield and cost relationship shown in the ARMS data suggests that when conventional soybean prices are high, organic systems lose their appeal, leading to slower adoption, and even declines in acres planted to organic soybeans.
What is worse, their heavy reliance on manual labor makes US organic farmers less competitive with those in developing countries, where labor costs are lower. This creates a financial incentive to import organic food, rather than  to grow it domestically. Even worse than that is the incentive it establishes for farmers in food-insecure nations to continue the centuries-old farming practices which help preserve their food insecurity.

What should we do about an agricultural sector that vilifies most US farmers, concocts baseless food scares to advertise its products, and in the end, wastes resources to produce less food of quality that's often inferior--and even dangerous? According to Philip Brasher and Dan Piller of the Des Moines Register, the US Congress has an idea: The US Federal 2008 farm bill includes money to help (modern) farms transition to organic agriculture.

Throwing money at a failed model of agriculture, a model which prohibits improvement, is not destined to solve its problems.

Source: GMObelus - Peer-reviewed news in the field of agricultural biotechnology
 

 

 

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