By Victor Martino

U.S. organic farmers will harvest a record number of acres across America this year, according to the just-released Annual Acreage Report from Mercaris, the leading authority on organic crop data in the country. This is pretty big news considering the weather and trade challenges farmers has been experiencing since early 2018.

According to the report, farmers will harvest 3.1 million acres of U.S. land certified for organic production in 2019, an increase of 7% over 2018. Much of the increase, according to Mercaris, is driven by a surge in new certified organic field crop operations across all U.S. states. The Western U.S. and High Plains regions saw the largest jump in organic harvested crop acres this year.

Overall total organic acreage will reach 8.3 million acres this year, according to Mercaris. In addition, 18,155 U.S. farm operations are now certified as compliant with the USDA National Organic Program standards. This is a 3% increase from 2018.

California leads the nation in organic crop acres, with more than double the acreage of second-ranked Montana.

It’s not surprising that acreage devoted to organic is on the rise because sales of organic produce, dairy, meat and packaged food products has been growing by 8% to 12% over the last decade, according to USDA and the Organic Trade Association. In other words, consumer demand for organic products is not only solid, it’s also growing. Organic represents only 5% to 6% of total food sales in the U.S., according to research firms IRI and Nielsen. It’s a niche — but a solid and profitable one for farmers, food-makers and grocers, all of which earn much higher margins on organic than they do on conventional crops and food products.

The business case for growing organic

I prefer, as do many farmers — including those who grow both conventional and organic crops — to view organic farming as a business proposition rather than through a political lense. There’s plenty of that on social media. An increasing number of U.S. consumers are demanding and buying organic products — fresh produce and dairy are the two leading categories — and smart, entrepreneurial farmers, along with an increasing number of corporate farmers, are therefore growing organic crops, producing organic milk, and feeding livestock organic grains so the meat they provide can be certified as organic.

My suggestion therefore is to view organic as an opportunity rather than as a threat to conventional farming and livestock production. It isn’t. Over 90% of all food produced in America is still done using conventional methods, although the use of pesticides, fungicides and insecticides, conventional farming’s holy trinity, have been decreasing steadily over the last decade.

To put the growth of the organic food industry in the U.S. in perspective, sales in 1997 were less than $4 billion annually. Today, sales of organic consumable products top $50 billion. That’s phenomenal growth.

Savvy farmers in California have and are riding this growth. California produces 38% of the country’s farmgate value, according to USDA statistics. Phenomenal indeed. That’s more than one-third of all organic production in the U.S.

With sales of organic foods growing on average by 10% annually (in contrast sales of conventional food products are growing at less than 2%), the business and profit opportunities in the organic farming sector are real for farmers.

At its annual convention in Fresno earlier this year, California Certified Organic Farmers (CCOF), the trade association for organic farmers in the state, presented a plan –“Roadmap to an Organic California: Benefits Report,” which details the benefits of expanding organic farming in the state. Among those benefits include higher profit margins for growers.

The group is now calling on state and local policymakers, community leaders and other stakeholders to get behind the concept of expanding organic production in the Golden State from its current 4% of total farmland to 10% by 2030.

This makes good sense in California because it’s the leading state for organic food purchases and consumption, as well as being the top state when it comes to organic food consumption. In 2018, for example, sales of organic commodities and processed foods totalled a whopping $14.55 billion.

Californians also love locally-produced foods. Many of the organic products making their way into grocery stores contain ingredients grown in far-away states and even overseas. Many California-based food processors would prefer buying locally but say there isn’t an adequate supply of certain crops.

Organic farming isn’t for all farmers, nor should it be. But as a business case for farmers, organic does have a lot to offer. An increasing number of farmers in California and elsewhere agree and are farming both conventional and organic on separate acreage. Meat and poultry producers and dairy farmers are doing the same.

Here’s why organic makes sense for farmers who are considering doing it.

First, sales growth of organic products at retail are outpacing conventional by a wide margin — on average 10% annual  sales growth for organic compared to less than 2% for conventional.

Additionally, there is a premium paid — often referred to as the “organic premium” — for organic crops, particularly fresh produce, over conventional. For example, growers of organic melons and almonds in California’s Central Valley are very happy with the prices they’ve been getting for their organic crops of late, and many are adding acerage.

Big food companies also are willing to help farmers convert conventional farmland into organic. For example, Food giant Kellogg’s has a program that pays almond growers to transition acreage from conventional to organic almonds, which it uses in its Kashi brand organic cereals and energy bars. Fellow food giant General Mills  is doing similar. It’s Annie’s Homegrown brand (macaroni and cheese and other products), for example, is working with farmers willing to convert grain and other crop acreage to organic. This cooperation includes grants and loans to participating farmers.

The ever-increasing cost of chemical fertilizer and other farm chemicals are also creating an incentive for farmers to transition some land to organic, as are increasing environmental requirements from federal and state governments.

Selling direct-to-consumers, whether at farmers markets, roadside stands or on the Internet, is also a growing trend. Organic is one of the most popular direct-to-consumer categories. Consumers increasingly want to know who produces their food and to purchase it directly from farmers with going through intermediaries like grocery stores. This trend is particularly popular among millennials and Generation Z consumers.

A good example is Del Bosque Farms on the Central Valley’s Westside. The family-owned farming operation grows both conventional and organic crops, including melons, cherries, asparagus and almonds. It’s organic produce is sold by premier grocery retailers like Whole Foods Market, Trader Joe’s and Publix. But Del Bosque Farms also sells its organic produce directly to consumers at a farm stand in Firebaugh CA and at its packing house in nearby Los Banos. Owner Joe Del Bosque recently told me he’s pleased with the direct-to-consumer sales and is looking forward to expanding the program.

Each farmer needs to evaluate organic on an individual business basis. But the reality is it’s here to stay — and will continue to grow. Organic is now mainstream with food companies and consumers, a reality many farmers realize, which is why crop acreage is growing.

Organic is and should be all about business opportunity. And in California the opportunity for growers is bigger and better than in most other states, particularly if they already have land. There are numerous resources available, like those I mentioned from the two major food companies, Kellogg and General Mills. Additionally, if the CCOF gets support for its program to grow organic acreage in California by 6% over the next decade, additional resources will be available for farmers wanting to get into organic. It’s all about business opportunity. And today is a good time to get into organic for interested farmers.