Is Organic Farming More Profitable?

Organic Farming Profits - Complete Controller

The demand for organic food and products has grown exponentially in the twenty-first century as people have grown healthier and more environmentally conscious. The need for sustained farming is more important than ever, as science has shown that everyday agriculture practices have adverse effects on climate change, and the use of pesticides and artificial fertilizers has led to water contamination, pollution, and soil erosion. Although these farming techniques usually produce higher yields, they are done at the expense of the environment and negatively affect our health in the long run. The need to balance the growing rise in global food demand and the conservation of the environment has induced more people towards organic farming produce.
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Despite producing lower yields than traditional farming techniques, studies have shown that organic farming is more profitable. Researchers calculated that organic farming earns approximately 22-35% more, as farmers can sell their certified organic produce at higher prices. The cost of producing organic goods is much lower as they do not rely on pesticides, chemicals, or other industrial items. However, they have a higher labor cost, which is beneficial as it creates more jobs and requires skilled professionals.

The demand for organic food has grown exponentially as millions of Americans become more health-conscious and actively seek healthy alternatives to their favorite foods. For example, Beyond Meat and Impossible Foods, the parent company of the Impossible Burger, have been offering meat-alternative plant-based patties and sausages to combat heavily processed fast food. It has become a multi-billion-dollar industry, with everyone actively pursuing more plant-friendly organic products. Supermarkets and big-box retailers like Walmart, Costco, and Target actively advertise their organic food sections and have seen massive spikes in sales. Download A Free Financial Toolkit

The value of organic farms being eco-friendly and healthier cannot be overlooked. Still, organic food does not produce the exact yield as those harvested through traditional farming techniques. Additionally, their high price margins can discourage the average American, who might not want to spend much of their budget on organic foods. Individuals might be more inclined to consume regular processed food products since they are more affordable. Regarding cost, organic foods cannot compete with processed foods and are in danger of being a luxury item rather than a necessity. Despite availability almost everywhere in the country, people experiencing financial hardships might not be able to afford to buy organic foods regularly.

While organic farming is more profitable than traditional farming techniques, there are disadvantages. At the same time, farmers can earn a premium from selling their products as certified organic; it is a long-term investment. It typically takes years to produce a yield that can cover their expenses. Many farmers cannot financially afford to invest in something that will not see a return for years and are hopelessly dependent on pesticides and chemicals. Most farmers dedicate only a percentage of their farming land to organic products. Though they might slowly reduce their dependence on chemicals, it will still be many years before they fully transition into exclusively producing organic foods. LastPass – Family or Org Password Vault

That means that the bulk of orders is being met by corporations, who have the capital and the means to mass-produce it that the average farmer cannot. This means companies use automation to produce large-scale orders, ultimately hurting the agricultural sector and dissuading farmers from entirely diverting from conventional farming methods. According to David Crowder from the Washington State University Department of Entomology, the problem could be solved if the government intervenes on their behalf and assists the industry.

“The challenge facing policymakers,” he explains, “is to develop government policies that support conventional farmers converting to organic and other sustainable systems, especially during the transition period, often the first three years.”

The only way for us to combat climate change and the degradation of the environment is by helping farmers use eco-friendly methods and boost profits during their first few years of transition. It is also crucial for the government to protect them from the threat of companies like Target and Walmart, whose pricing techniques ultimately cause more harm than good in both the short and long term.

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