Purdue analysis find organic profitability remains


Purdue analysis find organic profitability remains

Recent analysis by the Purdue Center for Commercial Agriculture finds some organic crops continue to out-compete conventional net returns.

Ag economist Michael Langemeier tells Brownfield organic crops need a price high enough to offset yield drags to keep the transition profitable.

“That’s particularly important for winter wheat, but also for corn and soybeans,” he says.  “The alfalfa yields are not that different.”

He says the yield drag for corn is more than 30 percent, soybeans are nearly 40 percent, and winter wheat is more than 50 percent. 

Areas near organic dairy production are likely to be more profitable according to Langemeier rather than rotating with winter wheat.

“One of the rotations that compare very favorable to conventional corn and soybeans is a corn, soybean, alfalfa rotation,” he says.

On a per-acre basis, the analysis found net returns for organic corn was $370 higher than conventional while organic winter wheat lost $112 compared to conventional acres.