Green Fields: Prices offer incentive for organic switch

A sharp drop in commodity prices, which has made it difficult for farmers to cover production costs, could entice more producers to consider the higher prices that come with organic production.

"There is a view that perhaps the drop might make it more attractive for people to take a look at," Laura Batcha, executive director of the Organic Trade Association, told reporters Tuesday at a breakfast sponsored by the group. "We haven't seen it yet, but the hope is that maybe it will."

Consumption of organic food has risen by double digits annually as the public demands more fruits and vegetables from Whole Foods, Wal-Mart, mom-and-pop retailers and farmers markets. Organic food sales reached $32.3 billion last year — a record, but a small fraction of the $760 billion in total food sales in the United States.

Batcha said organic producers have been unable to meet growing consumer demand, a problem that will worsen as shoppers buy more of the products. This year alone, organic sales are expected to grow 15 percent. "That number would be a whole lot higher were it not for the supply constraints," she said.

The Agriculture Department said in its Census of Agriculture report released earlier this year that 512 farms in Iowa were certified organic in 2012, out of 88,637 farms in the state. Those organic farmers oversaw 122,479 acres out of more than 30.6 million acres, leaving significant opportunities for growth in the state.

The challenge for organic is that producers of traditional crops must make changes to their land, such as ending the use of pesticides, and wait three years before they can be certified organic.

During the transition, they grow crops using organic practices, but they can't have their produce certified as such. As a result they may not benefit from the higher prices attached to the crops. "That is a long time to be producing organic but not receiving the organic price," said Chad Hart, an Iowa State University associate professor of economics. "It wasn't worth it for farmers" to make the switch.

Farm Rescue hires development director

Farm Rescue, a nonprofit that helps farmers in need in five Northern Plains states, is bringing a full-time development director on board.

Dennis Wiese, 54, of Flandreau, S.D., has decades of experience working the land and on agricultural issues. He is a former longtime president of the South Dakota Farmers Union and a former secretary and treasurer of the National Farmers Union. He currently farms with family members and runs a consulting business.

"Dennis has a wide array of experiences in rural America and in non-agricultural areas of the United States," Farm Rescue founder and President Bill Gross said. "He has worked on projects in the environmental, food, energy and transportation industries while maintaining his roots in farming and serving the public."

Wiese becomes the fifth full-time staffer for the nonprofit that Gross started in 2006 with just a handful of volunteers to help farmers in North Dakota struck by illness, injury or disaster. The nonprofit has since expanded to South Dakota, Minnesota, Montana and Iowa, helping farmers in need plant and harvest crops and hay.

Wiese said his role will largely be outreach and public relations, to strengthen fundraising and support for Farm Rescue, which relies on donations, grants, business sponsors and a network of about 1,000 volunteers around the country who travel to farms to do the actual physical labor.

"It's an endeavor to sustain the organization decades-out," Wiese said of his hiring.

Harvest expectations unchanged in crop report

In its crop update last week, the U.S. Department of Agriculture left this year's expected corn harvest at a record 14.41 billion bushels and the soybean crop at 3.96 billion bushels.

Some analysts expect that the USDA may eventually adjust the number of corn acres planted, which currently exceeds the agency's estimates by about 5 million acres.

But there was no such adjustment Wednesday, and Iowa State University agricultural economist Chad Hart believes the USDA will wait to do that in January, if necessary. Michigan and Wisconsin were behind in harvesting when harsh, snowy weather hampered farmers' efforts to get crops out of fields.

"There's still a fair amount of crop still in the fields, and it's expected they will probably still come in, maybe late, but they will be there," Hart said.

The report said demand for corn sweetener is expected to use an additional 10 million bushels of corn than earlier expected.

Also, demand for soybeans from exports was boosted by 40 million bushels.