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How to Meet the Soaring Demand for Organic Food

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How to Meet the Soaring Demand for Organic Food

Despite the rapid growth of the organic food industry, U.S. production lags significantly behind consumer demand. A new report from the Environmental Working Group shows that with modest reforms to existing programs, Congress could help growers transition away from farming that relies on chemical pesticides and expand the acreage dedicated to organic agriculture.

Between 1997 and 2015, sales in the organic sector soared from $3.7 billion to more than $43 billion. This double-digit growth nearly every year makes the organic sector one of the fastest growing segments of the food industry. Major retailers such as Costco report that they can't get enough organic food to meet customer demand.

Yet the gap between supply and demand means many American organic food companies have to rely on foreign suppliers for staples like soybeans, corn and rice—demand that could be met by domestic producers.

"Driven in large part by the multiple environmental and health benefits, Americans' appetites for organic food is seemingly insatiable," said Colin O'Neil, Environmental Working Group's agriculture policy director and author of the report. "The current organic trade deficit presents Congress with a unique chance to expand market opportunities for U.S. producers, while also benefitting consumers, food companies and the environment. With modest reforms to current programs in the next farm bill, Congress can reduce barriers to farmers who want to transition organic methods at no additional cost."

John Paneno, vice president of sourcing for Amy's Kitchen Inc. of Petaluma, California, said increasing the U.S. supply of organic food is essential.

"Amy's continues to see strong consumer growth for our organic products," said Paneno. "We need more programs that help our farmers transition into organic farming so that we can source the ingredients we need domestically and create new jobs for our rural communities."

The Environmental Working Group's report details how Congress can play a role in better positioning American farmers to meet the demand for organics, by increasing the number of organic farms and the amount of organic acreage. Congress has already begun discussing the 2018 Farm Bill, which O'Neil said should include the following modest changes:

  • Reform the Conservation Stewardship Program to create bundles of conservation practices specifically to help producers who want transition to organic.
  • Reform the Environmental Quality Incentives Program Organic Initiative to provide organic and transitioning producers with the same level of support as those in the general funding pool.
  • Reform the Conservation Reserve Program to provide greater incentives for producers to put farmland exiting the program into organic production.

"The organic food industry is now one of the fastest growing, most dynamic parts of the food sector, creating tens of thousands of jobs and producing in-demand foods for millions of Americans" said O'Neil. "Members of Congress should take any simple steps they can to reduce barriers to transition and help expand the organic farm footprint here in the U.S."

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