Tightening ratios between organic and conventional commodity prices have introduced new supply risks for organic markets and will decrease domestic production if the trend continues.
Read this paper to learn more about:
- Organic-to-conventional ratios for organic corn and soybeans have tightened over the past few years, which has threatened the financial situation of producers.
- In the short term, organic farmers have been shifting acres into alfalfa and considering selling into conventional markets to deal with the low premiums.
- In the longer term, tightening organic premiums would push some farmers out of organic production while discouraging further expansion.
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As a leading authority on energy and commodity markets across the globe, Argus is uniquely positioned to provide in-depth analysis and expert thought leadership. Our white papers are carefully written by Argus specialists from across our company. Each white paper focuses on a topical theme, exploring areas such supply and demand dynamics, price trends, trading activity and changing regulations. We always aim to provide a balanced view, underpinned by data and insight gathered first hand from the market.
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