There appears to be plenty of room for growth in the organics market as the US Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS) is reporting that, while generating $3.16 billion in sales in 2008, less than 1% of American farms are organic.Organic farms in the US “have higher average sales and higher average production expenses than US farms overall,” according to the NASS’s 2008 Organic Production Survey, which was released on February 3, 2010. The survey was the first of its kind, and according to USDA Deputy Secretary Merrigan, the report was undertaken because of the growing interest in organic farming. Merrigan sees the information in the survey as ‘“an important building block for future program and policy development.”
The survey counted 14,530 US farms and ranches. The operations had to be either certified by the USDA as organic, or were exempt from certification because the operation had sales that totaled less than $5,000. Organic farms totaled 4.1 million acres of land, but only 1.6 million were harvested cropland and 1.8 million acres were pasture and rangelands.
All fifty states have organic farms or ranches, but California led the way with 20% of the total US operations. Not surprisingly, California also led the nation in sales with $1.15 billion.
“Most organic producers sold their products locally, with 44 percent of sales taking place less than 100 miles from the farm. Nearly 83 percent of organic sales were to wholesale channels, including processors, millers and packers. Just over 10 percent of sales were direct to retail operations, including supermarkets. Only 7 percent of sales were direct to consumers, via farm stands, farmers’ markets, community supported agriculture and other arrangements.”
To see complete results of the survey click here.
To read the USDA news release on the survey click here.
To read a Wall Street Journal article on the survey click here.
Posted: 02/05/10
