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Rules, regulations and returns
Organic in Indiana
An expanding market
Research reduces risk
Market predictions
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Grocery stores are stocking an increasing variety of organic products. About 50 percent of organic products are purchased from grocery stores and supermarkets. (Photo by Tom Campbell) |
Grow it, and they will buy it—this seems to be the mantra for organic agriculture these days. One look at grocery store shelves reveals a host of “certified organic” fruits, vegetables, cereals and herbs. In the dairy and meat cases, organic milk, cheese, poultry, beef and pork are priced at a premium.
“Nationwide, the market for organics is growing at 20 percent per year,” says Corinne Alexander, professor of agricultural economics at Purdue University. “It's the fastest-growing food area. You can get in with just a couple of acres, and that's pretty high value.”
Organic products are those made or grown without the use of synthetic pesticides and fertilizers. Organic livestock is fed organic feed, grazed on organic pasture and slaughtered in an organic facility. Organically grown products in Indiana include soybeans, corn, wheat and a variety of vegetables.
Consumers buy organics for many reasons. “Consumers are becoming more health conscious,” says Alexander, an organic consumer herself. “Surveys have shown that the number-one reason consumers cite for purchasing organic products is health and nutrition,” she says. “Personally, I purchase organic because the farmer gets a higher price and, hopefully, a larger share of my food dollar.”
Rules, regulations and returns
To sell products labeled as organic, a farm must be certified by a U.S. Department of Agriculture-accredited certification organization. Certification requires that land used for organic production has been free of synthetic chemicals for three years and that seed is organic. Organic animals must be fed and maintained organically. This means no antibiotics or growth hormones. Pregnant females must be maintained organically for the last third of gestation for their offspring to be organic, and dairy animals have to be maintained organically for 12 months prior to milk harvest.
With organics, it's best to plan ahead, says Cissy Bowman, an organic farmer and executive director of Indiana Certified Organic, LLC, the only organic certification organization in Indiana. “People need to start thinking about getting certified two years out,” Bowman says. “You don't want to wait until you have a crop to sell to get certified.”
The USDA regulates labels for “100 Percent Organic,” “Organic” and “Made with Organic Ingredients.” There are also provisions for labels that claim some organic ingredients. “Probably at this point, 100 percent organic has the biggest market share, even if it's not labeled that way,” says Cathy Greene, a USDA Economic Research Service subject specialist for organic agriculture. “Fresh produce is still the most common type of organic product purchased.”
To carry the “100 Percent Organic” label, a product has to be just that. “Organic” means that the product is 95 percent organic. “Made with Organic Ingredients” means the product contains at least 70 percent organic ingredients. A complete list of organic requirements is available from the National Organic Program.
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