AMES, Iowa -- Demand for organic food and livestock feed is growing faster than the supply. This offers a viable economic opportunity for U.S. crop and livestock producers to meet a growing market. However, transitioning to successful organic production requires producers to make changes in production, marketing and financial management skills.
Iowa State University (ISU) Extension, through its Organic Agriculture Program is offering a semester long course -- “Risk Management Tools for Transitioning into Organic Production.” This course will be taught by a mix of ISU faculty, ISU Extension specialists and Iowa organic producers along with organic experts from USDA and the Iowa Department of Agriculture and Land Stewardship.
“I get calls all the time from processors and buyers looking for organic corn and soybeans, and they are offering $10 per bushel for organic corn and up to $21 per bushel for organic soybeans,” said Kathleen Delate, ISU Extension organic ag specialist. “Organic meat is also climbing and there are markets for organic beef and poultry in Iowa.”
Delate and Craig Chase, ISU Extension farm and agricultural business specialist, have been collecting data for several years that compare the cost of a conventional corn-soybean rotation to an organic corn, soybean, alfalfa and oats rotation.
Chase says that in general, well-managed organic rotations are more profitable than well-managed conventional corn-soybean rotations. This is the case across the state of Iowa, whether premiums are paid for the organics or if program payments are factored in. He says that when the high input costs for conventional farming are factored in, the difference in profitability between organic and conventional systems widens.
“Many conventional producers believe it doesn’t make sense currently to transition to organic production because conventional corn and soybean prices are high,” said Chase. “However, this may be a perfect time to transition because organic prices are higher than conventional prices and the lowest profit years are during the transition, which is now made easier with higher conventional prices.”
The transition to organic course can be taken as a credit or non-credit course either online via Adobe Connect, in person on the ISU campus or through some ISU Extension county offices. It will be held each Tuesday from 6 to 9 p.m. from Jan. 15 through April 29. Attendance at all classes is not required unless this course is being taken for credit. If you are taking it as a non-credit course, you do not have to participate in all session and the cost is $10 per session.
For more information on taking this course visit http://extension.agron.iastate.edu/organicag/events/transitioningcourse08.html or call (515) 294-5116.
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