Contact Us Quick Search
Organic Corn Profile

 

Revised December 2007 by Diane Huntrods, AgMRC, Iowa State University.


 

Overview
During the past decade, organic sales of all produce have shown an annual growth rate of between 15 to 20 percent. National data on production of organic corn indicate that from 1995 to 2005 the total acres of organic corn went from 32,650 acres to 130,672 acres. The majority of this production will be used in organic feed rations and the remainder will be used in food products. More than 90 percent of the organic corn produced is used domestically. Continual growth for organic corn production will depend on increased demand for use in both organic livestock feeds and human foods.

Product

In October 2002, the U.S. Department of Agriculture (USDA) established a set of national standards that food labeled "organic" must follow. As a result, organic corn must be raised without the use of synthetic pesticides or fertilizers. To ensure that appropriate production methods are being applied to the farm, government-approved inspectors evaluate the operation to validate that approved USDA organic practices are being used. In addition to the farm, companies handling or processing food-grade organic products must also be certified to meet the USDA standard. However, organic growers with less than $5,000 in sales do not need to be certified.

The majority of organic corn production occurs in Iowa, Minnesota, Nebraska, Texas and Wisconsin. According to USDA data from 2005, however, organic corn was grown in 35 states on nearly 131 thousand acres. This makes corn the second largest organic grain/seed crop, trailing organic wheat, which is raised on nearly 278 thousand acres, but surpassing soybeans, which are raised on around 122 thousand acres. Only about 0.2 percent of the U.S. corn crop was grown on certified organic farms. In contrast, a higher percentage of the barley, oats and rice crops was certified organic, that is, 1 percent, 1.1 percent and 0.8 percent, respectively.   

While organic farming generally requires more work than conventional farming, it pays better per unit for crop grown, often two to three times better. A Cornell University study, published in the July 2005 issue of Bioscience journal, says higher prices still make the net return per acre for organic corn equal to or greater than that of conventional corn. The Organic Price Index for #2 yellow corn provided the following prices for certified organic and for conventional corn in six U.S. markets:

 U.S. Market

 Price of Certified Organic Corn
 per bushel

 Price of Conventional Corn
per bushel

 Chicago

$11.00

$3.88

 Dallas

 $11.00

$4.83

 Fargo

$9.50

$3.86

 Minneapolis

$9.00

$3.71

 Omaha

$11.00

$3.99

 San Francisco

$14.00

$5.22

Source: New Farm, December 11, 2007.


 

Sources
Environmental, Energetic, and Economic Comparisons of Organic and Conventional Farming Systems, Bioscience journal, July 2005.

ERS, USDA.

National Organic Program.
Organic Price Report, New Farm, http://www.newfarm.org/opx/
Organic Trade Association.



 

Profile created February 2003 and revised December 2007.


 
Back Back Print Top Top
Green Border
Ag Marketing Resource Center Copyright © 2002-2007. All Rights Reserved.