Organic corn has delivered significantly higher returns than conventionally grown corn over the past five years, but Purdue University economists say bigger profits don’t automatically make the switch worthwhile.
Agricultural economist Michael Langemeier analyzed farm financial records from the University of Minnesota’s FINBIN database and found that while organic corn often earns much stronger returns, those results come with greater risk and more variability from farm to farm.
He says, “Organic crop yields were generally lower than conventional yields. No surprise there. For example, corn yields averaged about 24 percent lower. Soybean yields were 23 percent lower over the five-year period. Oat yields, on the other hand, were 36 percent lower. Winter wheat yields and alfalfa were similar. If yield were the only factor that mattered, conventional production, particularly for corn and soybeans, would clearly have the advantage, but that’s only part of the profitability story.”
Farmers considering organic production must also account for the three-year transition period required for certification, increased management demands, weed control challenges, specialized crop rotations, and finding reliable markets for organic grain.
“So, what does this tell us? It tells us that organic production offers greater profit potential, but also requires much stronger management to consistently achieve those returns. Experienced weed control, crop rotations, marketing, and overall management appear to matter even more in organic systems than they do in conventional production, with a highlight on weed control. It’s very important to control weeds in organic systems.” Says Langemeier.
The research suggests that while organic farming can pay off, success depends on much more than simply receiving a premium price. Careful planning, strong management, and local marketing opportunities all play a major role in determining whether the transition makes financial sense.
