Analysis of Organic Farming Profitability Trends

This technical report examines the profitability trends of organic farming in the United States, focusing on the Corn Belt region. It provides an analysis of organic commodity prices, operating costs, and net returns for organic corn, soybeans, and wheat. The report details how organic farm net returns have fluctuated, with a notable peak in the 2021-22 marketing year, reaching $1,153 per acre, before declining to a record low of $42 per acre in the 2023-24 marketing year. Factors contributing to these trends include the impact of the COVID-19 pandemic on market dynamics, rising production costs, and fluctuating commodity prices. The report outlines a framework for evaluating future net returns based on potential price and cost scenarios for the upcoming marketing year. It also discusses the implications of sustained low profitability on farmer retention and potential shifts in crop rotations among organic farmers. The analysis is based on data from Argus Media and the national farm financial database (FINBIN).