Agriculture Reference
In-Depth Information
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Detailed Regional Assessments
C
omparisons between conventional and organic farming methods often
ta
ke a distinctly regional approach in the United States. In the plains, an
ec
onomic analysis of several cropping systems in Nebraska found that use
of
organic versus conventional methods “had little impact on profitability”
(H
elmers et al. 1986, 153). Four cropping systems (continuous row crop,
ro
tational row crops, rotationwith small grain, and organic) were compared
ov
er an eight-year period, and organic methods performed well in terms
of
profit and risk, even without including the benefits of organic price
pr
emiums. Even when sold at conventional prices, the organic production
sy
stem had similar profit margins to the conventional fields.
Also in the plains, the economic potential of organic was comparable
to
conventional and ridge tillage (a soil conservation method) cropping in
So
uth Dakota (Dobbs et al. 1988). Again, no organic price premiums were
as
sumed, and organic yields were somewhat lower than the agrichemical
cr
ops (particularly with corn, while soybean and wheat yields were more
si
milar). Due to lower direct costs, the organic system was competitive. In
ad
dition, the researchers modeled various scenarios and found that with
re
duced federal farm program levels, the organic system would fare better
(b
ecause most organic systems do not rely on such subsidies). Continuing
w
ith this research, the crop yields and economic performance of organic,
co
nventional, and reduced-tillage farming systems were compared over a
fiv
e-year transition period at a South Dakota experiment station (Smolik
an
dDobbs 1991).Wheat and soybean yields were similar among the systems.
Th
e five-year net incomes were highest for the organic system because di-
re
ct production costs were lowest and crops sold at premium prices. In
ad
dition, the organic yields were more reliable than conventional crops in
dr
ought conditions. Other research concurred that under drought condi-
tio
ns organic systems have an advantage (Rickerl and Smolik 1990). Even
on
newly transitioned fields, which would not yet exhibit the cumulative
ef
fect of many years of organic soil building, soybean yields were high and,
as
mentioned, the organic methods proved beneficial through the variable
precipitation on the plains.
In Ohio, as inmost states, there is plenty of data on conventional farming
but little on organic methods. So the profitability of organic and conven-
tional farms was compared by gathering information from a mail question-
naire of sixty-four organic farmers and using the state's longitudinal data
gathered on conventional farmers (Batte et al. 1993). Three factors showed
the most significant variation: organic farmers received price premiums
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