An economic comparison of organic and conventional grain crops in a long-term agroecological research (LTAR) site in lowa

Abstract

Based on the interest of organic and conventional farmers in Iowa in long-term analysis of organic systems, the Neely-Kinyon Long-Term Agroecological Research (LTAR) site was established in 1998 to examine the agronomic and economic performance of conventional and organic systems, using certified organic production practices. We report the results of the economic analysis from 3 years of production (1999–2001). Using organic price premiums for organic crops, returns for corn within the organic corn-soybean-oat and corn-soybean-oat-alfalfa rotations were significantly greater than conventional corn-soybean rotation returns (US$126 ha−1). Com returns were not significantly different between the two organic rotations, at US$655 ha−1 and US$674 ha−1, respectively. Returns for soybean within the organic corn-soybean-oat and com-soybean-oat-alfalfa rotations were not significantly different, at US$1233 ha−1 and US$1326 ha−1, respectively. Organic soybean returns were significantly greater than conventional soybean crop returns (US$235 ha−1) in the corn-soybean rotation. Rotational 3-year average returns were US$180 ha−1 for the conventional corn-soybean rotation, compared to US$734 ha−1 for the organic corn-soybean-oat and US$739 ha−1 for the organic com-soybean-oat-alfalfa rotation.

A Review of Long-Term Organic Comparison Trials in the U.S.

“…Economic returns mirrored those previously reported at other sites, with the organic rotations garnering, on average, twice the returns of the conventional rotation (Delate et al, 2013), and lower costs than conventional crops during transition (Delate, Duffy, Chase, Holste, Friedrich, & Wantate, 2003;Delate, Chase, Duffy, & Turnbull, 2006). Results from the LTAR experiment have been similar to other long-term trials, although LTAR organic yields have often exceeded those reported in the literature.…”

Economic evaluation of cereal cropping systems under semiarid conditions: minimum input, organic and conventional

“…Meco et al (1998), Lacasta & Meco (2006), (Agreda & Abós, 2001) emphasize that organic cropping systems are more profitable than conventional systems even without considering the higher market prices for organic products. Delate et al (2003) obtained an increase of 25% in economic results for an organic system in relation to conventional agriculture with more profitable crops (cornoat-alfalfa) and more favourable climate conditions. Assuming a higher market price, the margins of the minimum input system (minimum (org), Figure 3) improve substantially (496%), almost five times higher than the conventional option.…”

“…Moreover, we obtained similar results in a previous study including 25 analyses in eight locations in Spain with similar climatologically conditions over a four year period under normal soil fertility levels (Pardo, 2003). Of course, under these semiarid conditions, water is always the limiting factor and yields critically depend on the amount of rainfall in spring as stated by Moret et al (2007) and Díaz-Ambrona & Mínguez (2001).…”

“…Cropping systems like organic farming, selling products at a higher price and promoting environmental sustainability by reducing fertilizer and pesticides, can be more profitable than conventional systems (Delate et al, 2003;Pimentel et al, 2005). Nonetheless, it is reasonable to assume that yield could decrease without chemical fertilization (Pardo et al 2008;García-Martín et al, 2007), without chemical weeding (Barberi et al, 2000) or with the organic substitutes.…”

Review: Redesigning Canadian prairie cropping systems for profitability, sustainability, and resilience

“…In long-term experiments in Saskatchewan, Minnesota, and Iowa, organic systems had net returns greater than or equal to conventional systems, but these levels of return were dependent on organic premiums for at least some crops (Delate et al 2003;Delbridge et al 2011;Zentner et al 2011a). Income variability may be lower in organic systems (Pimentel et al 2005;Zentner et al 2011a).…”