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Originally published
Vol. 4, Issue 2 (April 2006)—updated July
2006
U.S. Organic Farm Sector Continues To Expand
Catherine
Greene

Most segments of the U.S. organic farm sector
have expanded since USDA set uniform organic standards
in 2000. About 50 organic certification programs—State
and private—are currently accredited by USDA
to certify U.S. farmers, ranchers, and processors,
about the same as before USDA made certification
mandatory. USDA’s organic rules also streamlined
organic import procedures, and over 40 foreign programs
are now accredited to U.S. standards.
Certified organic crop acreage
increased 11 percent between 2001 and 2003, with
large increases for fruits and vegetables and for
hay crops used in dairy. Overall, certified organic
acreage declined slightly in 2002 from the previous
year, as USDA implemented national organic rules,
but rebounded in 2003. Farmers in 49 States dedicated
2.2 million acres of cropland and pasture to organic
production systems in 2003. Nearly 1.5 million acres
were used for growing crops. California, North Dakota,
Minnesota, Montana, Wisconsin, Colorado, and Iowa
had the most organic cropland, and Texas, Alaska,
and California had the largest amount of organic
pasture and rangeland. Certified organic cropland
accounted for 0.1 percent of U.S. pasture and 0.4
percent of U.S. cropland, although the share is
much higher in some crops, such as vegetables at
nearly 4 percent and fruit at about 2 percent.
The number of certified organic
livestock animals—beef cows, milk cows, hogs,
pigs, sheep, and lambs—increased more than
fivefold from 1997 to 2003, and rose 15 percent
between 2002 and 2003 alone. Dairy has been one
of the fastest growing segments of the organic foods
industry. Milk cows accounted for over half of the
certified livestock animals during 1997-2003, and
organic milk cows accounted for 1 and 2 percent
of the total in California and Wisconsin, the two
top dairy States for both organic and conventional
production in 2003.

Organic cotton and soybeans acreage
declined after 2001, despite growth in retail sales
of organic cotton and soy-based products. Import
competition likely played a role in this. USDA’s
Foreign Agricultural Service estimates that the
value of U.S. organic imports was $1.0-$1.5 billion
in 2002, while the value of U.S. organic exports
was $125-$250 million. Although consumer spending
on organic foods is still small—approximately
2 percent of at-home food sales in 2003—rapid
growth is expected to continue in the U.S. and other
major markets, while the competition for these markets
is likely to increase considerably.
Organic pasture and rangeland also
declined (6 percent) between 2001 and 2003, mostly
for rangeland in the West. As USDA implemented uniform
organic standards—including stringent standards
for livestock—some organic ranchers switched
to the natural meat market exclusively. Although
natural meat products may be produced under private
standards that go beyond USDA’s guidelines,
natural meat producers are not prohibited from using
antibiotics in production and are not required to
use certified organic feed grains or pasture or
provide cows with access to pasture.
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