Indiana CCA Conference 2018 Presentation



Specialty Session
Tue, Dec 18, 2018
1:00pm to 1:50pm


This presentation will examine the net returns associated with making the transition from conventional crop production (corn/soybean rotation) to organic crop production (corn/soybeans/oats/forage rotation).  The transitional organic net returns involve two transition years and three years of organic production, or five years of net returns.   The net returns for this system will be compared to five-year net returns for a conventional corn/soybean rotation.  Sensitivity of net returns to changes in yield and price assumptions for both systems will be explored.

Farmers that have transitioned to organic grain production report improved profitability, soil health, and quality of life from economic stability.  Though organic grain producers have been able to achieve economic sustainability, there is a lag in the growth of the domestic organic grain supply.  Less than 1% of US agricultural land is organic certified, with the number being lower in Indiana. A research team at Purdue University conducted interviews to grain buyers in the Midwest to understand their decision-making processes, buying agreements, and requirements and attributes expected from organic grain suppliers. Preliminary data presented aims to discuss marketing opportunities available to organic and transitioning grain farmers, and help identify potential bottlenecks and communication gaps between grain buyers and producers.



Michael Langemeier

Director of Cropping Systems
Purdue University

Michael is the Director of Cropping Systems for the Center for Commercial Agriculture in the Department of Agricultural Economics Department at Purdue University. He received a B.S. and M.S. in Agricultural Economics from the University of Nebraska-Lincoln in 1984 and 1986, and a Ph.D. in Agricultural Economics from Purdue University in 1990. Michael’s extension and research interests include crop insurance, cropping systems, benchmarking, financial management, land markets, risk management, strategic management, and transition planning. He has presented material on these topics to state, national, and international audiences. In addition to his extension and research work, Michael has taught courses in economic theory, farm management, and risk management. Prior to arriving at Purdue, Michael spent 22 years in the Department of Agricultural Economics at Kansas State University. In addition to working on Extension and research projects, Michael taught courses in economic theory and farm management and worked closely with the Kansas Farm Management Association. He also conducted workshops for feed mill managers, emphasizing the importance of tracking financial performance, benchmarking and capital budgeting. In addition to conducting numerous workshops and presenting Extension and research information to numerous audiences in the United States, Michael has conducted workshops and given presentations in Australia, China, Ecuador, Ireland, Germany, New Zealand, Russia, South Africa and Tanzania. He is currently involved in agribenchmark, an international benchmarking group centered in Germany. Michael received a bachelor's degree and master's degree from the University of Nebraska-Lincoln. His doctorate is from Purdue University. Michael's family operates farms in eastern Nebraska.

Nicholas Lancaster

Purdue University

Nick Lancaster is a graduate student completing a MS in Agricultural Economics. He has completed a BS and MS in Animal Sciences and is committed to the success of agriculture. Nick has experience in interpreting and relaying scientific information to producers. He is passionate about the success of agricultural operations, especially family-owned operations. Nick is interested in combining his scientific production skills with production economics and economic decision making, with hopes to be able to more efficiently assist agricultural operations.