Complete update on the Organic Market and Industry

Interesting USDA report just released updating information about the evolution of the Organic Industry and organic Farming. The shortage in supply in the US has been pushing to new regulations and financial support to farmers to convert to organic production.

Consumer demand for organic products has widened over the last decade. While new producers have emerged to help meet demand, market participants report that a supply squeeze is constraining growth for both individual firms and the organic sector overall. Partly in response to shortages in organic supply, Congress in 2008 included provisions in the Food, Conservation, and Energy Act (2008 Farm Act) that, for the first time, provide direct financial support to farmers to convert to organic production.

This report examines recent economic research on the adoption of organic farming systems, organic production costs and returns, and market conditions to gain a better understanding of the organic supply squeeze and other emerging issues in this rapidly changing industry.
Released Wednesday, June 3, 2009

See http://www.ers.usda.gov/Publications/EIB55/