Organic agriculture can be much more profitable than conventional agriculture, according to new research published this week in the journal Proceedings of the National Academy of Sciences. The study by two Washington State University professors shows that the profit margins for organic agriculture are significantly greater as long as farmers can charge higher prices than their non-organic counterparts. “The reason we wanted to look at the economics is that more than anything, that is what really drives the expansion and contraction of organic farming – whether or not farmers can make money,” said David Crowder, from WSU’s Department of Entomology. The scientists analysed the financial performance of organic and conventional agriculture from 40 years of studies covering 55 crops grown on five continents. Out of 129 initial studies, 44 were included in the meta-analysis. The study also included profit data for multiple crops grown over several seasons to better reflect how farmers profit from agriculture. The researchers found that premiums paid to organic farmers ranged from 29 to 32% above conventional prices. Organic farming practices require farmers to spend 7 to 13% more on labour, while other costs were not significantly higher. Even with organic crop yields being 10 to 18% lower, the breakeven premiums necessary for organic profits to match those of conventional farmers were only 5–7%. “That was a big surprise to me,” said Reganold, a soil scientist and organic agriculture specialist. “It means that organic agriculture has room to grow; there’s room for premiums to go down over time. But what we’ve found is that the premiums have held pretty steady over the 40 years represented in the study.” According to the study, farmers converting to organic face many problems and uncertainties as the transition period for organic certification exposes farmers to financial risk when their yields drop but they are not yet receiving premiums. The authors suggest that government policies could further boost adoption of organic farming practices, especially during the transition period, often the first three years. The study neither forecasts the effects of a major shift to organic production, which could result in lower prices due to increased supply nor does it account for the environmental costs or ecosystem services from good farming practices. But according to the authors, organic farming with its multiple environmental benefits can contribute a larger share in sustainably feeding the world. (ab)