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Organic Agiculturehttp://ers.usda.gov/Briefing/Organic/ 
Visit Our Website To Learn More!National Agricultural LibraryCataloging Record:
The U.S. Department of Agriculture (USDA) prohibits discrimination in all itsprograms and activities on the basis of race, color, national origin, age,disability, and, where applicable, sex, marital status, familial status, parentalstatus, religion, sexual orientation, genetic information, political beliefs, reprisal,or because all or a part of an individual’s income is derived from any publicassistance program. (Not all prohibited bases apply to all programs.) Personswith disabilities who require alternative means for communication of programinformation (Braille, large print, audiotape, etc.) should contact USDA’sTARGET Center at (202) 720-2600 (voice and TDD).To file a complaint of discrimination write to USDA, Director, Office of CivilRights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410 orcall (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equalopportunity provider and employer.
Emerging issues in the U.S. organic industry.(Economic information bulletin ; no. 55)1. Organic farming—Economic aspects—United States.2. Natural foods—Economic aspects—United States.3. Consumption (Economics)4. Agricultural subsidies—United States.I. Greene, Catherine. II. United States. Dept. of Agriculture. EconomicResearch Service.III. Title.HD9005
Use o commercial and trade names does not imply approval or constituteendorsement by USDA.
Cover photo credit:
USDA/NRCS.
 
United StatesDepartmentof Agriculture
www.ers.usda.gov
A Report from the Economic Research Service 
Abstract
Consumer demand or organic products has widened over the last decade. While newproducers have emerged to help meet demand, market participants report that a supplysqueeze is constraining growth or both individual rms and the organic sector overall.Partly in response to shortages in organic supply, Congress in 2008 included provisionsin the Food, Conservation, and Energy Act (2008 Farm Act) that, or the rst time,provide direct nancial support to armers to convert to organic production. This reportexamines recent economic research on the adoption o organic arming systems, organicproduction costs and returns, and market conditions to gain a better understanding o theorganic supply squeeze and other emerging issues in this rapidly changing industry.
Keywords:
organic agriculture, armers, handlers, consumers, organic production costs,organic supply, marketing organic products, organic label, organic price premiums, localood, organic ood imports.
Acknowledgments
The authors thank Nathan Childs, Elise Golan, Barry Krisso, Pat Sullivan, LaurianUnnevehr, and Utpal Vasavada in ERS and Barbara Robinson (USDA AgriculturalMarketing Service) and Jerey Steiner (USDA Agricultural Research Service) or theirhelpul review comments. The paper also beneted rom the insightul comments andsuggestions provided by Meg Moynihan (Minnesota Department o Agriculture) andNeal Hooker (Ohio State University). The authors also thank Dale Simms or excellenteditorial guidance, Chris Dicken and Dave Nulph or valuable assistance with maps, andSusan DeGeorge or distinctive layout and design.
Catherine Greene, Carolyn Dimitri,Biing-Hwan Lin, William McBride,Lydia Oberholtzer, and Travis Smith
Emerging Issues in the U.S.Organic Industry
EconomicInormationBulletinNumber 55June 2009
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