Introduction

Organic farming became one of the fastest growing segments of U.S. agriculture during the 1990's. Certified organic cropland more than doubled from 1992 to 1997, and two organic livestock
sectors–eggs and dairy–grew even faster. ERS recently analyzed data from State and private certification groups to calculate the extent of certified organic farmland acreage and livestock in the United States. 

Farmers in 49 States dedicated 1.3 million acres of farmland to organic production systems in 1997. Two-thirds of the farmland was used for growing crops, with Idaho, California, North Dakota, Montana, Minnesota, Wisconsin, Colorado, and Iowa the top producers. Colorado and Alaska had the largest amount of organic pasture and rangeland. Nearly half the States were raising certified organic livestock. 

While adoption of organic farming systems showed strong gains between 1992 and 1997 and the
adoption rate continues high, the overall adoption level is still small–only about 0.2 percent of all U.S. cropland was certified organic in 1997. Obstacles to adoption by farmers include large managerial costs and risks of shifting to a new way of farming, limited awareness of organic farming systems, lack of marketing and infrastructure, inability to capture marketing economies, insufficient numbers of processors and distributors, and limited access to capital. 

Government efforts to boost organic production have focused on developing national certification
standards to assure consumers of consistent product quality and on streamlining interstate commerce in organically grown products. Forty organic certification organizations, including a dozen State programs, conducted third-party certification of organic production in 1997. While many already follow the standards outlined in the Organic Foods Production Act of 1990, USDA recently proposed uniform national standards for defining the term "organic" for both bulk and processed products and at all stages of production and marketing.

Background

U.S. producers are turning to organic farming in record numbers in order to lower input costs, conserve nonrenewable resources, capture high-value markets, and boost farm income, especially as prices fall for staple commodities. Organic farming systems rely on practices such as cultural and biological pest management, and virtually prohibit synthetic chemicals in crop production and antibiotics or hormones in livestock production. For example, organic farmers provide habitat for predators and parasites of crop pests, calculate planting/harvesting dates and rotate crops to maintain soil fertility, and cycle animal and green manures as fertilizer. Organic livestock growers try to accommodate an animal's natural nutritional and behavioral requirements. 

Overall, certified organic cropland and pasture accounted for about 0.2 percent of U.S. total farmland in 1997. Only 0.1 percent of the top U.S. field crops–corn and soybeans–were grown under certified organic farming systems. 

On the other hand, about 2 percent of top fruit and vegetable crop acreage–apples, carrots, lettuce, and grapes–was managed organically in 1997. Markets for organic vegetables, fruits, and herbs have been developing for decades in the United States. State and private groups certified over 180,000 acres of these crops in 44 States in 1997, more than double the amount certified in 1994, with the biggest gains in cultivated and wild-harvested herbs.

Crops

Organic vegetable crops were produced on 48,227 acres in the United States in 1997.
Tomatoes, lettuce, and carrots were grown on about a quarter of total organic vegetable acreage. Mixed vegetables (small farms with a large number of vegetable crops) were grown on a third of organic vegetable acres. 

California producers grew nearly half of the organic vegetables certified in 1997, with lettuce accounting for the largest share of acreage. While only about 2 percent of vegetable acreage in the top producing States was managed under organic farming systems in 1997, the share for Vermont was 24 percent because the State has been promoting local organic agriculture for almost three decades.

Organic fruits and nuts were grown on over 49,000 acres in the United States in 1997. Grapes accounted for 39 percent of certified acreage in 1997, followed by apples (18 percent), citrus (12 percent), and tree nuts (10 percent). California led organic grape production, while apples were produced in 16 States, including Arizona, California, Washington, and Colorado. 

Certified organic cultivated herbs were produced for culinary and medicinal uses in 32 States on over 6,400 acres in 1997, led by California, Washington, and Illinois. State and private agencies in Florida, Idaho, and Oregon also certified over 80,000 acres of forests, scrublands, and other natural areas for wild-harvesting (wild-crafting) organic herbs in 1997. 

Certified organic grains were grown in 35 States, with North Dakota leading production at over 50,000 acres. Wheat was produced under certified organic farming systems on over 125,000 acres in 1997, corn was grown on over 42,000 acres, and oats and barley were each grown on almost 30,000 acres. Other certified organic grain crops–sorghum, rice (including wild rice), spelt, millet, buckwheat, and rye–were grown on less than 13,000 acres each. Montana led organic wheat production, while Minnesota accounted for the largest share of organic corn and buckwheat acreage. California had the most certified organic rice production.

Organic bean production--mostly soybeans--totaled over 96,000 acres in 1997, with Minnesota and Iowa leading producers. Organic hay and silage reached almost 127,000 acres in 39 States in 1997. Certified organic oilseeds –including flax and sunflowers–were grown on 31,433 acres in 18 States in 1997. Other certified organic crops–including cotton, peanuts, potatoes, and trees for maple syrup–accounted for 70,000 acres in 1997. 

Livestock

Certified organic cows, pigs, and sheep were raised in 15 States in 1997. Dairy cows were managed organically in 13 States, with New York leading. The number of certified organic milk cows in the U.S. nearly tripled between 1992 and 1994, and more than doubled--to just under 13,000--between 1994 and 1997. 

California was the leader in organic poultry production, followed by New York and Virginia. The United States had 537,826 certified organic layer hens in 1997, up sharply from 47,700 in 1994. 

Certified organic livestock production is still well under 1 percent of total production. Organic meat and poultry markets have lagged those for crops, partly because meat and poultry could not be labeled as organic until February 1999, when a provisional label was approved by USDA. Food crops and nonmeat animal foods (eggs and dairy products) are regulated by the FDA, and have been allowed to carry an organic label throughout the 1990's. 

What's Ahead? 

Several States have begun subsidizing conversion to organic farming systems to improve the environment. In Iowa, organic crop production has been an approved State conservation practice since 1997, and is eligible for cost-share support from USDA's Environmental Quality Incentive Program. In Minnesota, the Department of Agriculture implemented an Organic Cost Share Program in 1999, which reimburses Minnesota producers for up to two-thirds of the cost for organic inspection and certification. Also, several State-run certification programs charge only nominal fees. A recent University of Georgia analysis suggests that these State incentive payments may compel growers who are already interested in organic production, but more obstacles need addressing to attract most large producers.

In addition to its efforts toward developing national organic standards and streamlining interstate
commerce in organic products, USDA has been promoting organic exports for several years. A pilot program to offer organic crop insurance is under development. Several other USDA research programs have focused on organic and sustainable farming systems since the 1990's, and more such programs are taking shape.

For complete information and statistical data, visit the new issues center is at http://www.ers.usda.gov/whatsnew/issues/organic/ .

Company news release
N2629