The Costs And Crop Choices Associated With Starting A...

This paper will review the costs and crop choices associated with starting a brand new organic farm in California. In addition to a data review, supply and demand determinant research will help support a recommendation as to whether a 30-year corn farmer would be making a smart business decision by switching to organic farming. Organic farming is one of the fastest growing segments of U.S. agriculture. Despite the economic downturn, sales of organic food continue to rise. Consumer demand for organic foods continues to show double-digit growth. Organic products are now available in nearly 20,000 natural food stores and nearly 3 out of 4 conventional grocery stores. Organic sales account for over 4 percent of total U.S. food sales,†¦show more content†¦Furthermore, a more recent survey conducted in 2011 by the Organic Trade Association found that more than three-quarters of U.S. families purchased organic food. Along with the residential sector, the education and restaurant sector also contribute substantially in the organic food market. Many universities and restaurants have also started offering organic food in the USA. According to â€Å"The United States Organic Food Market Forecast Opportunities, 2018†, the organic food market of the US will grow at about fourteen percent from 2013 to 2018. Organic food sales in the U.S. have grown from about $11 billion in 2004 to about $27 billion in 2012. Markets for organic food witnessed enhanced progress for decades in the U.S. Below is a chart for organic food sales and annual growth for 2004-2013. The five determinants of demand are price, income, expectations, relative prices and preferences. They detail the conditions that drive individual purchasing decisions and thus demand. Thus, while the demand for more organic farming is high, the process to transition into an organic farmer is lengthy, costly and highly regulated. Organic certification verifies that your farm complies with the USDA organic regulations and thus, will allow you to sell and label your products as organic. The main downfall during the transition period