Organic Data and Research from the ARMS Survey: Findings on Competitiveness of the Organic Soybean Sector

Abstract

Organic production has expanded rapidly in the US over the last decade, particularly for specialty crops. In 2005, USDA's Economic Research Service (ERS) and National Agricultural Statistics (NASS) began to include targeted sub‐samples of organic producers in its major annual economic survey, the Agricultural Resource Management Survey (ARMS). In this article we use data from the 2006 ARMS to examine the characteristics of producers adopting the organic production approach to soybean production, and contrast these with conventional producers. Organic soybean producers were younger, had less acreage, were less likely to work off‐farm, and were more often located in northern states than conventional soybean producers. Also, differences in the costs of production for each system are derived. Results indicate that the average costs for producing soybeans were higher for producers using the organic approach in 2006 after accounting for the influence of other factors on production costs, sample selection bias, and organic transition costs, but were covered by the higher premiums that year. However, the organic price premium for soybeans has narrowed since 2006, and reduced the economic incentive for converting to or maintaining an organic system.

Agronomic Comparisons of Organic and Conventional Soybean with Recommended and High Inputs during the First 4 Years of Organic Management

“…Organic compared with conventional soybean yield was more competitive in our study compared to other studies in which 15% to 40% lower yield has been reported [4][5][6][7]10,11]. The similar yield between organic and conventional soybean with recommended inputs during the first 2 years of our study agree with the study in Iowa, USA in which soybean yield was similar during the transition years [8].…”

“…Despite the yield penalty, organic soybean hectares will increase because of the growing demand for organic soybean by the expanding organic dairy industry; the dominant agricultural sector in the Northeast USA [3]. Furthermore, organic compared with conventional soybean production is more profitable because the current organic price premium offsets the yield penalty and greater production costs [4].…”

“…The lower yield in organic compared to conventional soybean yield is mostly associated with weed interference [4][5][6][7][10][11][12]. The use of extended crop rotations, however, can reduce weed seedbanks, which may improve weed control in organic soybean production [13].…”

Adoption of Cover Crops by U.S. Soybean Producers

“…For cover crops, we hypothesize that younger farmers will have a higher likelihood of adoption, because benefits are realized over a period of years. Education assumes a linkage between knowledge and adopting a practice and has had a positive effect on the likelihood of adoption (McBride and Greene, 2013;Rogers, 2003;Schimmelpfennig and Ebel, 2016;Weber and McCann, 2015). Bergtold et al (2012) used an education variable in their study of cover crops in Alabama, but it was not significant.…”

“…Off-farm employment could be a factor affecting the adoption decision. In the literature, off-farm employment has shown mixed results because it can increase financial capability (Schimmelpfennig and Ebel, 2016) and reduce time available to consider and adopt a new technology (McBride and Greene, 2013). Gedikoglu, McCann, and Artz (2011) explained that off-farm employment may have a positive impact on a capital-intensive practice but a negative effect on a labor-intensive one.…”