Agriculture Reference
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synthetic fertilizers and pesticides, whereas the alternative (organic) farm
used a four-year rotation (maize-small grain
alfalfa-alfalfa-soybean) and
did not apply synthetic fertilizers and pesticides.Livestock production,which
occurred on both farms, was not evaluated in this study, and premium prices
for the organic crops were not included in the baseline analyses.Various forms
of government farm support payments were included in the analyses.
Over the eight-year study period, earnings from crop production on both
farms in Study 3 were considered “respectable for the area” (Dobbs & Smolik,
1996), but the conventional farm was more profitable than the alternative
farm (Table 1.2). Crop production costs were lower on the alternative farm
(Table 1.2), but did not overcome the effects of lower crop yields and a smaller
percentage of the cropland being used for maize and soybean, which were
more profitable than small grains and alfalfa during the study period.
Although weed densities in maize and soybean were higher on the organic
farm, results from research station experiments led the investigators to con-
clude that weeds were unlikely to have influenced yields substantially on
either the conventional or alternative farm (Dobbs & Smolik, 1996).
Results from these studies indicate that cutting costs for weed manage-
ment and other farming activities can increase the profitability of crop pro-
duction under certain circumstances. However, a favorable outcome is not
guaranteed. The success or failure of cost-cutting strategies depends on crop
choices, impacts of government farm programs, skills and knowledge of farm
operators, site-specific soil, weather, and pest conditions, and other factors
(Welsh, 1999). More research is needed to increase or maintain crop yields
while reducing production costs. This might be achieved, in part, by focusing
on ecological processes within farming systems that can reduce requirements
for cultivation, herbicides, and other external inputs.
Strategies to increase crop value
In addition to reducing production costs, farm profitability may be
improved by increasing prices received for crop and livestock products.
Organic farming is one option for adding value to farm products that has
become increasingly popular in recent years. During the mid to late 1990s,
retail sales of organic products in the USA and Europe rose 20% to 30% annu-
ally (Tate, 1994; Burros, 1997; Welsh, 1999). In 1997, the American and
European markets for organic products were each estimated to be between $4
and $5 billion, while sales in Japan were estimated to be $2 billion (Welsh,
1999). Geier (1998) predicted the worldwide market for organic foods will
reach $100 billion by 2010.
Price premiums paid to American farmers for organic products can be
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