Post on 05-Oct-2020
Michael J. O’DonnellPurdue ExtensionExtension Educator, Organic and Diversified Agriculture(765) 284-8414modonnel@purdue.eduwww.purdue.edu/dffs/organicag
February 19, 2020
Successful Transitions: Considerations in Transitioning to Organic Grain Production
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
www.purdue.edu/dffs/organicag
Michael J. O’DonnellFebruary 19, 2020
https://www.ccof.org/press/michelob-ultra-pure-gold-launches-6-6-pack-program-support-organic-farming
Michael J. O’DonnellFebruary 19, 2020
6 for 6-pack?
– Let’s do the numbers….– 43,560 sq. ft / acre 7,260 6-packs– 27.556 6-packs in a keg (1/2 bbl) 263 kegs per acre!– So, the next logical question…..
https://www.michelobultra.com/
Michael J. O’DonnellFebruary 19, 2020
How many kegs of beer are consumed over a weekend at Purdue University?
Michael J. O’DonnellFebruary 19, 2020
https://www.ccof.org/ccof-foundation/organic-transition-grants#eligibility
https://www.michelobultra.com/campaigns/contract-for-change.html
Michael J. O’DonnellFebruary 19, 2020
https://thecounter.org/michelob-ultra-organic-beer-super-bowl/
What is organic agriculture???
Slides adapted from:Dr. Joel Gruver, WIU
https://www.slideshare.net/jbgruver/history-of-organic-agriculture-14808475
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
What is organic agriculture???
Slides adapted from:Dr. Joel Gruver, WIU
https://www.slideshare.net/jbgruver/history-of-organic-agriculture-14808475
Michael J. O’DonnellFebruary 19, 2020
What is organic farming?“Organic farming is a production system which avoids or largely excludes the use of synthetically compounded fertilizers, pesticides, growth regulators and livestock feed additives.
To the maximum extent feasible organic farming systems rely on crop rotations, crop residues, animal manures, legumes, green manures, off-farm organic wastes, mechanical cultivation, mineral-bearing rocks, and aspects of biological pest control to maintain soil productivity and tilth, to supply plant nutrients, and to control insects, weeds and other pests.”
- USDA Study Team on Organic Farming, 1980
Michael J. O’DonnellFebruary 19, 2020
What is organic agriculture?"Organic agriculture is an ecological production management system that promotes and enhances biodiversity, biological cycles and soil biological activity. It is based on minimal use of off-farm inputs and on management practices that restore, maintain and enhance ecological harmony.
‘Organic’ is a labeling term that denotes products produced under the authority of the Organic Foods Production Act.
The principal guidelines for organic production are to use materials and practices that enhance the ecological balance of natural systems and that integrate the parts of the farming system into an ecological whole. ... Organic food handlers, processors and retailers adhere to standards that maintain the integrity of organic agricultural products.
The primary goal of organic agriculture is to optimize the health and productivity of interdependent communities of soil life, plants, animals and people.“ ---USDA NOSB defn, Apr 1995
Michael J. O’DonnellFebruary 19, 2020
7 CFR 205 – National Organic Program
http://www.ecfr.gov/cgi-bin/text-idx?SID=4afa25d8d8a865cd1938a45637e4d684&node=7:3.1.1.9.32&rgn=div5
Michael J. O’DonnellFebruary 19, 2020
What is organic production?
• “Organic production [is] a production system that…respond[s] to site-specific conditions by integrating cultural, biological, and mechanical practices that foster cycling of resources, promote ecological balance, and conserve biological diversity” [§ 205.2].
Michael J. O’DonnellFebruary 19, 2020
• “Organic is a labeling term for food or other agricultural products that have been produced according to the USDA organic regulations … Producers and handlers must meet these standards to use the word ‘organic’ or the USDA organic seal on food, feed, or fiber. – Is Organic an Option for Me?” USDA, August 2012
• “USDA Certified Organic products are grown and processed according to USDA’s national organic standards and certified by USDA-accredited … certification organizations.”–USDA AMS website
NOP is a Process Verification Program (PVP)
Michael J. O’DonnellFebruary 19, 2020
International Standards
Michael J. O’DonnellFebruary 19, 2020
What Lands May Be Certified as Organic?• Land must have been free
of prohibited substances for 3 years –
WHY 3 YEARS?
• If the land has been free of prohibited substances for at least 3 years, the operation may be eligible for immediate certification
• Both conventional and organic production may occur on the same operation
• Buffer zones may be required, if prohibited substances are used on adjacent lands
• There are no size requirements: both small and large farms are eligible for organic certification
Michael J. O’DonnellFebruary 19, 2020
Getting Certified under the National Organic Program (NOP)
Michael J. O’DonnellFebruary 19, 2020
Certifiers (18 Accredited Certifying Agents have clients in IN)
– A Bee Organic– CCOF– ECOCERT ICO– Global Organic Alliance– ICS– MOSA– MCIA– MOFGA– NICS– OEFFA– OneCert
– OnMark Certification– OTCO– OCIA– PCO– Pro-Cert– QAI– QCS
https://www.ams.usda.gov/services/organic-certification/certifying-agents
Michael J. O’DonnellFebruary 19, 2020
https://attra.ncat.org/product/organic-certification-of-farms-and-businesses-producing-agricultural-products/
Michael J. O’DonnellFebruary 19, 2020
https://attra.ncat.org/product/guide-for-organic-crop-producers/
Michael J. O’DonnellFebruary 19, 2020
OTA, 2017
Michael J. O’DonnellFebruary 19, 2020
https://ota.com/news/press-releases/20699
Michael J. O’DonnellFebruary 19, 2020
“New records were made in both the organic food market and the organic non-food market. Organic food sales reached $47.9 billion, for an increase of 5.9 percent. Sales of organic non-food products jumped by 10.6 percent to $4.6 billion. The growth rate for organic continued to easily outpace the general market: in 2018, total food sales in the U.S. edged up just 2.3 percent while total non-food sales rose 3.7 percent.”
“Almost 6 percent (5.7 percent) of the food sold in this country is now organic.”
Michael J. O’DonnellFebruary 19, 2020
http://www.organic-world.net/yearbook/yearbook-2018.html
Michael J. O’DonnellFebruary 19, 2020
How much land in the U.S. is certified organic?
Michael J. O’DonnellFebruary 19, 2020OTA, 2017
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
770 certified organic operations (May 2018). • 573 crops. • 405 livestock. • 117 handling.
847 (May 2019).
917 (Feb 2020).
Michael J. O’DonnellFebruary 19, 2020
Organic product sales in Indiana 2016
Michael J. O’DonnellFebruary 19, 2020
Torres, Purdue HO-280-W
Michael J. O’DonnellFebruary 19, 2020
Mercaris 2018 Organic Acreage Reportshows continued growth in organic field crop
acres in Indiana420 operations on 43,219 acres in 2016
(USDA) increased to 540 operations on 57,648 acres in 2018
(Mercaris)
29% increase in operations and 33% increase in acreage
from 2016-2018
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
https://www.ams.usda.gov/market-news/organic
Milk, egg, chicken, produce, cotton, grain, retail
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
Michael J. O’DonnellFebruary 19, 2020
UPDATE
Michael J. O’DonnellFebruary 19, 2020
https://mercaris.com/farmers
https://ag.purdue.edu/commercialag/Pages/Resources/Finance/Financial-Analysis/Comparison-of-Organic-and-Conventional-Crop-Rotaions.aspx
C-B-W Organic
Corn/Soybean/Wheat Organic Rotation
Corn T Soy Wheat T Wheat Org Corn Org SoyOrg
Wheat Rotation
Gross Return 728.75 381.18 435.02 335.53 1184.24 827.79 559.13 759.05Variable Cost 459.73 225.19 189.23 193.10 353.90 208.45 193.10 260.09Contribution Margin 269.02 155.98 245.78 142.43 830.34 619.33 366.03 498.96Fixed Cost 316.64 376.83 309.09 351.73 432.86 400.06 374.96 388.58
Earnings -47.62 -220.85 -63.30 -209.29 397.48 219.27 -8.93 110.39
Percent of Acres 6.7% 3.3% 10.0% 10.0% 26.7% 23.3% 20.0% 100.0%
Langemeier, 2019
year 1 year 2 year 3 year 4 year 5C 67% 33% 0% 0% 0%T 33% 67% 67% 33% 0%O 0% 0% 33% 67% 100%
Michael J. O’DonnellFebruary 19, 2020
https://www.nationalgeographic.com/environment/future-of-food/organic-farming-crops-consumers/?fbclid=IwAR2kGf6YVilbSLPuYPhBDRuimV_WtnDWCpt6OMp0euNCpIrzU_1oXjEdodI
Nov 20, 2018
Michael J. O’DonnellFebruary 19, 2020
It takes a high level of skill and will to be a successful organic
farmer!
Dr. J Gruver
Michael J. O’DonnellFebruary 19, 2020
Barriers to Transition
– Access to information – Low yields during first 3+ years– Initial cost increase and learning period– Retooling and new equipment; storage– Market uncertainty– Lender support through transition years– Risk management options – Support network– Barriers “between the ears”
Michael J. O’DonnellFebruary 19, 2020
Shift in mindset –• Not input substitution
• Organic mgmt. is not prescriptive: Site and management specific
• “What about the cropping system allows a given pest to thrive or find a niche? Identify it and ‘close the door!’” – Klaas Marten
• Redirect annual chemical costs to equipment (and labor / management)
• “You’ll need more than just financial reasons” –Carmen Fernholz
• Not an abandonment of technology
Michael J. O’DonnellFebruary 19, 2020
Source: Canadian Organic Growers
Michael J. O’DonnellFebruary 19, 2020
Source: Canadian Organic Growers
Michael J. O’DonnellFebruary 19, 2020
Transition considerations
• Timing of transition (year 3 crop certified)
• Plan rotation to hit highest premium crop (corn?) in year 1 of certification
• Whole farm, Phased, Split/Parallel
Michael J. O’DonnellFebruary 19, 2020
USDA Programs to support organic
• Organic Certification Cost-Share Program (USDA FSA)
• USDA NRCS programs – CAP 138 and EQIP
• Federal Crop Insurance covering organic commodity production (USDA RMA)
https://www.raboag.com/news/rabo-agrifinance-designs-industrys-first-organic-transition-loan-offering-54
Michael J. O’DonnellFebruary 19, 2020
Considerations with transition– Build a support network, attend meetings– Study the NOP standard– Develop a record keeping system– Find an ACA– Develop a business plan for navigating transition,
find a lender that understands organic– Don’t bet the farm– Transition your best fields first– Explore / identify markets– Diversify your crop rotation– Develop holistic and adaptive approach to weed and
fertility management
Michael J. O’DonnellFebruary 19, 2020
Thank YouMichael J. O’Donnell
Extension Educator, Organic and Diversified AgriculturePurdue Extension(765) 284-8414modonnel@purdue.edu
"The real Arsenal of Democracy is a fertile soil, the fresh produce of which is the birthright of the nations."
-- Sir Albert Howard