Organic Crop Market Shows Resilience Amid Volatility, Acreage Predicted to Double by 2030

Despite volatile pricing in the organic market, there remains a robust demand, especially with prices showing resilience. As Dave Ross from Great Harvest Organics points out, while soybean prices are not hitting the $40 per bushel mark from 2022, a strong $21.90/bu was still recorded as of August 24, 2023. Similarly, organic corn has shown consistency, priced at $9.51, albeit down from $11.28 in the previous year. Ross emphasizes the importance of a long-term perspective, especially with expected prices averaging around $30 per bushel when combined with corn. As the demand for organic produce grows, the U.S. organic acreage is projected to double by 2030. Interestingly, a significant portion, about 25-30%, of the U.S.’s organic supply is imported. Poultry plays a pivotal role in the U.S. organic demand, with expectations of a 7% annual growth rate till 2029. International demand, especially from countries like India, has been shifting towards organic protein, and there’s a growing interest in soy oil as a preferred cooking ingredient. Industries such as dairy and pork are further anticipated to drive organic crop demand due to increased feed requirements. This surge in demand is leading to an expected increase in organic acreage, with projections of reaching up to a million acres for corn and between 500,000 to 800,000 acres for soybeans. Transitioning fields to organic might be a lengthy process, typically taking around 36 months, but Ross assures that the market demand will justify the efforts in the end.