How easy is it for farms to go organic?

According to Fortune Business Insights, the global organic foods market was worth USD $177.08 billion in 2023. It’s projected to grow at a CAGR of 12.99% until 2032, when it will reach a projected $529.64 billion. Europe dominated the market in 2023 with a share of 44.17% – but organic foods are on an upward trajectory in markets around the world. 

Organic produce enables farmers to pull heftier price tags. Research shows that farmers can earn up to USD $14 more per bushel for soybeans, $3 more for corn, and $5 more for wheat compared to non-organic crops; and these premium prices are reflected across the spectrum of organic produce. 

Once established, organic farms can be more profitable than conventional farms – with organic farmers earning up to 35% more overall. 

And the growing consumer demand for organic produce is driving more and more farmers to consider the shift from conventional farming. 

What are the challenges that farmers face when they transition to organic? 

So organic farming holds the potential for increased profitability and longevity among consumers’ preferences. But transitioning to organic isn’t easy – with a number of costly and time-consuming challenges that stand in the way of organic certification. 

Those challenges include:

• Reduced yields. It takes time for soil to adapt to organic biopesticides instead of conventional chemical pesticides, and for beneficial insects to establish populations. So farmers can expect a loss in yield when they make the transition to organic – and it takes time to rebalance at pre-transition levels.
• Pest management. Conventional farms manage pests with effective synthetic pesticides. Organic farms have to adopt pest management systems that don’t disrupt their organic farming processes and certification, so organic farms are significantly more vulnerable to pest attacks – and as a result, the loss of crops.
• Weed management. Similarly, weed control is a key challenge for farmers when they move away from synthetic herbicide products.
• Higher cost of resources. Organic farmers have to use appropriate organic fertilisers and biopesticides – and these are typically more expensive than synthetic options. Until farmers achieve increased profitability from organic produce sales, it can be difficult to absorb those increased costs.
• Increased labour. Organic farming is usually more labour intensive – partly due to the increased demands of pest management and weed control.
• Need for more land. An organic farm tends to require more land to produce the same crop yield as conventional farming – and this is a serious barrier-to-entry for farmers with limited space.
• The certification process. You can’t just call yourself organic – you have to be certified with organic status before you can label your produce as ‘organic’. This involves a rigorous testing process that often takes a number of years – so that lengthy transition period can be economically unstable for farmers.
• New skill sets. Organic farming takes a specific skill set, and requires specialised knowledge. Training and access to information is critical for farmers who want to make the transition away from conventional farming – and even with adequate training, it can take time to practise and establish those skills effectively on a working farm. 

All of this means that going organic isn’t an easy task – and it can’t happen overnight. It demands commitment, planning, investment, and an enthusiasm to adapt to new practices and new market drivers. 

With the right support, more farmers can access the economic and sustainability benefits of going organic

The economic benefits are motivating more farmers to take on the challenge of going organic. And increased government support is easing the way, with grants for organic and sustainable practices available to farmers in a growing number of countries. 

Denmark, Austria, Thailand, and India are just a few of the nations that are providing government support. In the EU, 61.6% of land under organic farming received specific organic support payments in 2020. And in Saudi Arabia, the government is prioritising the development of an Organic Agricultural Policy. 

The organic food market is growing – and fast. So farmers and government organisations are working to tap into the demand for healthy, sustainable, and ethically grown produce, and enabling a bright future for organic food.