Organic Food: The Farmer's Conundrum

By Tom Philpott, Grist.org. Posted March 27, 2007.

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On a recent trip to Austin, I visited the flagship Whole Foods -- a vast space where people gather en masse to render financial sacrifice to that new god, organic food. From the depths of the parking lot, as you make your way up to the store, you're urged again and again by a sign that simply says, "Love where you shop." From the doe-eyed look of the supplicants making their way up, and the glazed-eyed look of those carrying their treasure down, most clearly do.

While few Whole Foods stores have the buzz of the Austin flagship, that veritable cathedral of gustatory virtue is emblematic of organic food's rising social status. According to the Organic Trade Association's most current figures [PDF], consumer demand for it leapt 16 percent in 2005.

That's a little lower than the 20 percent figure commonly bandied about to describe the market's growth, but it's by no means shabby, considering that the overall U.S. food market grows by just 2 percent to 4 percent per year. It turns out that the $34 billion the food industry drops on marketing every year doesn't inspire people to eat more -- it just gets them to shift around their food dollars from one product to another.

No wonder corporate giants from Wal-Mart to McDonald's are groping for a slice of the organic pie. Generating 16 percent annual growth for a given product normally requires a massive marketing budget; organic foods fly off the shelf just by being labeled as such.

But if consumers are snapping up organics and corporations are scrambling to give them what they want -- if not always exactly what they want -- a funny thing is happening down on the farm: growth in organic acreage isn't coming even close to keeping up with retail-sales growth. That is, existing farms aren't transitioning acres to organic -- and new farms aren't being rolled out -- at nearly the growth rate of organic-food demand.

This is an important point. One of the great motivations of "buying organic" is protecting the land, water, and air from the cascades of poison sprays and artificial fertilizers dumped on farmland each year. Shouldn't booming demand for organic food translate to a proportionate boom in organic land under cultivation?

California Dreams ... and Realities

In the U.S., organic food accounts for [PDF] about 2.5 percent of all food sales. But out in the field, just 0.2 percent of farmland is under organic production. In Europe, by contrast, organic food accounts for a just-higher percentage of all food sales than in the U.S., but organic agriculture is more pervasive -- E.U.-wide, it occupies nearly 4 percent of farmland.

Indeed, New Farm reports that Italy alone, not quite as large in size as New Mexico, has more land in organic agriculture than the entire United States!

Why is organic a more popular concept on our supermarket shelves than in our farm fields? The California Institute for Rural Studies released a study [PDF] recently addressing that very question. It raises some bracing facts. If any state would be expected to boast a bounty of land under organic cultivation, it's California, the nation's fruit and vegetable basket and source of 40 percent of all farm-level U.S. organic produce sales.

But even in California, organic ag represents just 0.63 percent of farmland. Organic acreage did double between 1998 and 2003, but growth has leveled off and acreage now just holds steady. Total acres transitioning into organic are now nearly balanced by the acres transitioning out. Evidently, many farmers aren't making enough money growing organically to remain certified, despite the booming retail market.

See more stories tagged with: organic, farming, agriculture

Grist staff writer Tom Philpott farms and cooks at Maverick Farms, a sustainable-agriculture nonprofit and small farm in the Blue Ridge Mountains of North Carolina.

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