Sales of organic food are booming and account for more than 5 percent of U.S. grocery sales, running ahead of organic’s small but growing share of the farm sector. The organic farms total is up by 3 percent and harvested acres are up by 2 percent from 2017, market data company Mercaris said on Tuesday.
Mercaris estimates there are 17,648 certified organic farms across the country that will harvest 6.5 million acres of crops this year. They would be a tiny part of USDA’s February estimate of 2.048 million farms and 910 million acres of land in farms.
“Despite an apparent slowdown in organic acreage expansion, the report as a whole presents an overwhelmingly positive picture of the organic and non-GMO markets,” said Ryan Koory, Marcaris senior economist. “Organic field crop producers have continued responding to expanding consumer demand in the United States. Although the growth in organic farmland was uneven across the United States, our research showed that organic producers are working to match the growing demand for organic livestock feed.”
Dairy and eggs account for $1 in every $7 in organic food purchases, according to the Organic Trade Association. Produce is the perennial sales leader. The growth rate in sales of dairy and eggs has slowed, said the OTA in May. It said the Trump administration’s decision to kill a regulation on animal welfare standards on organic farms “caused millions of consumers to question the meaning and relevance of the USDA Organic seal.” The administration also killed a proposal for a checkoff program for organics.
More land was devoted to organic crops increased in most regions of the country this year, said Mercaris. Harvested acreage of organic soybeans was up by 14,187 acres nationwide, it said, despite declines in Texas and New York state.
The USDA and Mercaris use different approaches for estimates of organic agriculture. Based in the Washington suburbs, Mercaris says under-estimates slightly organic acreage and farm totals. The USDA was not expected to report on organic acreage this year.
The OTA welcomed the Mercaris report as timely. “Its findings that organic acreage is increasing in most areas of the United States support our anecdotal findings, as do the findings that transitioning to organic corn and soybean acreage is challenging in some of our Corn Belt areas. While we welcome the findings and efforts by Mercaris, we also urge the U.S. Department of Agriculture to continue its regular reporting on the organic agricultural sector…The organic industry cannot continue to thrive and maintain stable markets without good data collection.”
Mercaris also reported that plantings of non-GMO corn and soybeans totaled 12.1 million acres, down 5 percent from 2017 and equal to slightly less than 7 percent of all corn and soybean area. “The largest reduction in non-GMO area occurred across the High Plains and central Corn Belt,” said Mercaris.