Organic Production and Sustainable Enterprises for Kentucky Lee Meyer, Dept of Ag Economics Followed by Adam Watson, Ky Dept. of Ag the Organic Certification process
Dec 18, 2015
Organic Production and Sustainable Enterprises for Kentucky
Lee Meyer, Dept of Ag Economics
Followed by Adam Watson, Ky Dept. of Agthe Organic Certification process
The Starting Point:“There has been considerable
interest in having a session on organic production and sustainable enterprises”
Why? Perhaps:
◦Consumer interest◦Economic/marketing opportunity ◦Environmental issues
OverviewBackground on “sustainable” and
“organic” market trends and opportunities
Specifics by type of ag (livestock, horticulture, row crop)
The Organic Certification process (Adam Watson, Ky Dept. of Ag.)
Issues:Nutrient managementGulf of Mexico dead zoneErosion – even in no-tillChemical residues – surface and
ground waterWeed resistance – resistant
pigweed
The three pillars:◦Environmental stewardship◦Social responsibility◦Economic viability
What is “sustainability” anyway?
The three pillars:◦Environmental stewardship◦Social responsibility◦Economic viability
We can measure it --◦Environmental – soil erosion; water
quality ◦Social – working conditions,
fatalities/injuries◦Economic – profit, land tenure
What is “sustainability” anyway?
Establish benchmarks, measure the level of sustainability, ◦Are we making progress?◦Public policy analysis◦Comparing farms – an issue!
Provide guidance to buyers
Why Measure Sustainability?
Leonardo Academy/ANSI
Keystone Institute
Stewardship Index for Specialty Crops
Cool Farm Institute
===============
Others (Walmart’s Sust. Consortium, Dairy,
Potato, National Institute for Sustainable Ag, …)
Measuring Sustainability - the Key Players:
Keystone Center- Field to Markethttp://www.fieldtomarket.org/
Fieldprint Calculator -6 resource areas:Land Use – land per unit produced, all
practices, including rotations.
Soil Loss – based on Univ. Soil Loss and Wind Erosion models; accounts for soil, tillage, etc.
Soil Carbon – function of organic matter added, field operations, soil erosion rates.
Keystone Center- Field to Markethttp://www.fieldtomarket.org/
Irrigation Water Use – adds to the crop, but also energy and GHG;
Energy Use – units of energy/production (e.g. BTU/bu. Corn); includes both direct and embedded energy in inputs;
Greenhouse Gas Emissions – both direct and embedded; (seed, fertilizer, lime, tillage, etc.)
Keystone Center- Field to Markethttp://www.fieldtomarket.org/
◦Agricultural Contribution to GDP
◦ Implied Labor Hours
◦National Fatalities
◦National Debt to Asset Ratio
◦Non-Fatality Injury
◦Real Returns Above Variable Costs
Keystone Center- Field to MarketSocioEconomic Indicators
What is “Organic”?
A USDA labeling term, for products produced under specific protocols
Requires certification Imports may be USDA certified
“organic”
Misconceptions Conventional farming –
◦Over use of pesticides◦Disregard for environment◦ etc.
Organic farming◦Benign neglect◦Poor quality◦Etc.
Misconceptions - production Conventional farming –
◦Over use of pesticides◦Disregard for environment◦ etc.
Organic farming◦Benign neglect◦Poor quality◦Etc.◦Organic spray – spinosad or
pyrethrin
The Organic Marketplace
Not true – the market slowed after the 2008 recession, but has regained its growth trajectory
Market Opportunities for Organic
Meats and Livestock◦Niche◦Mostly dairy, eggs, chicken◦Beef – but often mixed up with
grassfedIssues:
◦Processing◦Organic feeds
Market Opportunities - HortFocus on direct marketing,
including farmers markets and CSAs
Mostly urban markets – so location/ transportation cost is important
“Local” tends to trump “organic” in many Kentucky markets
Organic is becoming a commodity is some categories
Organic Corn EnterpriseSubstitute tillage for chemical
weed controlRotations for weed control and
fertilityCost of production typically much
lowerYields – 50% to 90% in long runMarket – primarily as livestock
feed and Kentucky is a deficit state
Fewer outlets and risk management options
Market Opportunities – CornDemand as a livestock feedPrice – 1.5 to 2 x conventional feed corn
http://www.ams.usda.gov/mnreports/lsbnof.pdf
Organic Corn – Madison, INAugust, 2013