Organic Benefits Local Economies

Recent studies pointing to the production benefits of organic agriculture has been joined by the findings of economists at Iowa State University showing the economic advantages of a switch from “conventional” to organic farming. The study results, based on Woodbury County’s (IA) plan to provide tax reductions for farms switching to organic production, show that the potential regional economic impact of organic produce exceeds that of industrial farming.

The results of the study show that there are very strong differences not only in the average returns to organic farmers when compared to their industrial equivalent, but in the overall regional economy.

Comparing the two approaches on the same 1,000 acres, it was found that the organic rotation produced 52 percent more gross sales revenue, 110 percent more value-added income, 182 percent more labor income, and 56 percent more jobs!

The researchers are optimistic about their findings. “Promoters of rural economic health and stability are highly conscious of the potential economic impacts of industrial gains and losses. Generating positive economic impacts within the agricultural sector is one strategy for enhancing rural economic well-being.”
These findings can be used as “a clear and convincing component” to answer the question of whether organic production can boost the fortunes of rural economies, especially in the farmlands of the Midwest, and help make the case for the positive promotion of organic conversions.

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