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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