Editing Organic farming (section)

=== Profitability ===

In the United States, organic farming has been shown to be 2.7 to 3.8 times more profitable for the farmer than conventional farming when prevailing price premiums are taken into account.<ref>{{Cite journal|last=Moyer|first=Jeff|date=2013|title=Perspective on Rodale Institute's Farming Systems Trial|journal=Crop Management|volume=12|pages=1–3|doi=10.1094/CM-2013-0429-03-PS}}</ref> Globally, organic farming is 22–35% more profitable for farmers than conventional methods, according to a 2015 meta-analysis of studies conducted across five continents.<ref name="Crowder 7611–7616">{{Cite journal|last1=Crowder|first1=David W.|last2=Reganold |first2=John P.|date=16 June 2015|title=Financial competitiveness of organic agriculture on a global scale|journal=Proceedings of the National Academy of Sciences|volume=112|issue=24|pages=7611–7616|doi=10.1073/pnas.1423674112|issn=0027-8424|pmc=4475942 |pmid=26034271|bibcode=2015PNAS..112.7611C|doi-access=free}}</ref>

The profitability of organic agriculture can be attributed to a number of factors. First, organic farmers do not rely on synthetic fertilizer and pesticide inputs, which can be costly. In addition, organic foods currently enjoy a price premium over conventionally produced foods, meaning that organic farmers can often get more for their yield.

The price premium for organic food is an important factor in the economic viability of organic farming. In 2013 there was a 100% price premium on organic vegetables and a 57% price premium for organic fruits. These percentages are based on wholesale fruit and vegetable prices, available through the United States Department of Agriculture's Economic Research Service.<ref>{{Cite web|url=http://www.ers.usda.gov/data-products/organic-prices.aspx|title=USDA Economic Research Service - Organic Prices|last=Greene|first=Catherine|website=www.ers.usda.gov|access-date=25 March 2016}}</ref> Price premiums exist not only for organic versus nonorganic crops, but may also vary depending on the venue where the product is sold: farmers' markets, grocery stores, or wholesale to restaurants. For many producers, direct sales at farmers' markets are most profitable because the farmer receives the entire markup, however this is also the most time and labour-intensive approach.<ref>{{Cite book|title=Understanding Organic Pricing and Costs of Production|last=Post|first=Emily|publisher=NCAT|year=2012}}</ref>

There have been signs of organic price premiums narrowing in recent years, which lowers the economic incentive for farmers to convert to or maintain organic production methods.<ref name=":2">{{Cite journal|last1=McBride|first1=William D.|last2=Greene |first2=Catherine R.|date=2013|title=Organic Data and Research from the ARMS Survey: Findings on Competitiveness of the Organic Soybean Sector|journal=Crop Management|volume=12|pages=1–11|doi=10.1094/CM-2013-0429-04-RS}}</ref> Data from 22 years of experiments at the Rodale Institute found that, based on the current yields and production costs associated with organic farming in the United States, a price premium of only 10% is required to achieve parity with conventional farming.<ref name=":2" /> A separate study found that on a global scale, price premiums of only 5-7% were needed to break even with conventional methods.<ref name="Crowder 7611–7616"/> Without the price premium, profitability for farmers is mixed.<ref name="Lotter2003" />{{rp|11}}

For markets and supermarkets organic food is profitable as well, and is generally sold at significantly higher prices than non-organic food.<ref>{{cite news|url=https://www.nytimes.com/2008/04/18/business/18organic.html?pagewanted=all&_r=0|title=Sticker Shock in the Organic Aisles |last=Martin|first=Andrew|author2=Kim Severson |date=18 April 2008|newspaper=New York Times|access-date=5 March 2015}}</ref>