Sunday, December 4, 2011

Organic Wheat Producers Earned Much More than Conventional Wheat Producers in 2009

Wheat production costs and returns per planted acre, excluding government payments, for organic producers and all wheat producers, 2009:

Based on a special version of the Agricultural Resource Management Survey (ARMS), organic wheat and all wheat producers had similar yields in 2009, on average, but organic wheat producers received significant price premiums. As a result, the average gross value of production for organic wheat was $110 per acre higher than for all wheat producers. In addition, total (economic) costs on organic acreage were about $13 less per acre than for all producers, on average, due to lower operating costs on organic acreage. These yield, price, and cost relationships resulted in average returns above total costs for organic producers being more than $120 per acre above the average return for all wheat producers in 2009. This chart is based on Wheat production costs and returns from the 2009 ARMS.