March 4, 2010

New data offers in-depth look at organic farming

WASHINGTON—The nation’s organic farms and ranches have higher average sales and higher average production expenses than U.S. farms overall, according to results of the 2008 Organic Production Survey, released recently by the U.S. Department of Agriculture’s National Agricultural Statistics Service.

The survey counted 14,540 U.S. farms and ranches that were either USDA-certified organic or were exempt from certification because their sales totaled less than $5,000. Those operations comprised 4.1 million acres of land, of which 1.6 million acres were harvested cropland and 1.8 million acres were pasture or rangeland.

While there were organic farms or ranches in all 50 states, nearly 20 percent of the operations were in California, which also accounts for 36 percent of all U.S. organic sales. Nationwide, 2008 organic sales totaled $3.16 billion, including $1.94 billion in crops sales and $1.22 billion in sales of livestock, poultry and their products.

Organic operations had an average of $217,675 in sales, compared with $134,807 for all farms as reported in the 2007 Census of Agriculture. Production expenditures averaged $171,978 per organic farm, compared to the nationwide average of $109,359 for all farms.

Most U.S. organic producers sold their products locally, with 44 percent of sales taking place less than 100 miles from the farm. Nearly 83 percent of organic sales were to wholesale channels. Slightly more than 10 percent of sales were direct to retail operations. Only 7 percent were direct to consumers.

More than 78 percent of survey respondents indicated that they plan to maintain or increase their organic production over the next five years.

The survey found 180 certified or exempt organic farms in Virginia last year that occupied a cumulative 12,308 acres—5,884 acres of harvested cropland and 5,164 acres of pastureland.

Almost 40 percent of Virginia organic sales took place within 100 miles of the farm; nearly half took place within 500 miles of the farm. Fifty-two percent of Virginia organic sales were through wholesale channels.

Almost 45 percent of the Virginia organic producers indicated they plan to increase production in the next five years.

The 2008 Census of Agriculture found 47,383 farms in Virginia that occupy a total of 8.1 million acres and had sales valued at $2.9 billion.

Complete results of the 2008 Organic Production Survey are available at www.agcensus.usda.gov/Publications/2007/Online_Highlights/Organics.

Contact Ellen Dougherty, 202-690-8122, or Krissy Young, 202-690-8123, of USDA or Pam Wiley, VFBF publications editor, at 804-290-1128.