Argus assesses the record-low net return for organic farmers during the 2023-24 crop year and provides analysis on future returns and organic farmer retention:
- Despite improved crop yields and generally lower operating costs, low organic commodity prices have shrunk net returns for farmers. Given a three-crop rotation of organic corn, soybeans, and feed grade wheat, farmers experienced the lowest net return on record for the 2023-24 crop year.
- Organic corn and feed grade wheat markets have reached record low prices, with organic soybeans at a three-year low price for the start of the 2024-25 crop year.
- If low organic prices persist and organic farmers don’t yield profitable net returns, farmers may choose to switch rotations or surrender their organic certification altogether.
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