US farmers are dropping organic labels

Midwestern fruit and vegetable farmers are more likely than their counterparts in other regions to give up federal organic certification, according to a Purdue University study. Obtaining organic certification can be an expensive, year-long process that requires changing management practices and working with certifiers who determine if farms meet the government’s extensive requirements. But many farmers - who can get higher prices for organic products - think this is all worth it.

In 2017, organic food sales topped $45 billion, up 6.4 percent from 2016, according to the Organic Trade Association. Sales have more than doubled since 2010. Fruits and vegetables are the top-selling category, making up nearly 37 percent of organic food sales.

Despite the boom in demand, the number of organic farms has declined from 14,540 in 2008 to 12,818 in 2015. Some of that is due to consolidation of small and medium farms into larger operations. But some operations are simply leaving the organic program.

That may be because too few of the smaller organic farms are located near markets that would purchase large quantities of organic produce. Transportation to larger population centres may be less cost-effective for the small organic farms.

Organic farmers were also likely to opt out of certification if the process became too much of a hassle. “Farmers were more likely to decertify if they perceived that loss of freedom, paperwork, cost of certification, interaction with the certifier, and lack of information were barriers to remain certified. It seems that the requirements embedded in the certification process were detrimental to the decision to remain certified,” the authors of the study wrote.

Understanding the reasons why organic farmers decertify may help inform government decisions on certification rules and processes.