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.