Organic ‘hot spots’ are economic boost, says white paper

A white paper commissioned by the Organic Trade Association says organic “hot spots” have higher household incomes and lower poverty rates than rural counties in general. The author of the white paper, Penn State economist Edward Jaenicke, says, “The growing market interest in organic agriculture can be leveraged into effective policy for economic development.”

Some 225 counties rank at hot spots, says the OTA paper, identified as areas with high organic activity and with adjoining counties where organic also is a significant factor. OTA cited four examples: Huron County in Michigan, Carroll County in Maryland, Clayton County in Iowa and Monterey County in California. All are within 110 miles of urban areas that would provide outlets for organic food and products.

According to the white paper, released in conjunction with OTA’s annual conference in Washington, median household income is $2,000 higher in the hot spots than in rural counties generally, and poverty rates are 1.3 percentage points lower.

“The findings of this research show organic certifiers and the transfer of knowledge and information play a critical role in developing organic,” said OTA chief executive Laura Batcha. “And it provides policymakers with an economic and sound reason to support organic agriculture and to create more economy-stimulating organic hot spots throughout the country.”

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