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Published byRaymond Hoover Modified over 9 years ago
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Organic Production and Sustainable Enterprises for Kentucky Lee Meyer, Dept of Ag Economics Followed by Adam Watson, Ky Dept. of Ag the Organic Certification process
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The Starting Point: “There has been considerable interest in having a session on organic production and sustainable enterprises” Why? Perhaps: ◦ Consumer interest ◦ Economic/marketing opportunity ◦ Environmental issues
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Overview Background on “sustainable” and “organic” market trends and opportunities Specifics by type of ag (livestock, horticulture, row crop) The Organic Certification process (Adam Watson, Ky Dept. of Ag.)
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Issues: Nutrient management Gulf of Mexico dead zone Erosion – even in no-till Chemical residues – surface and ground water Weed resistance – resistant pigweed
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The three pillars: ◦ Environmental stewardship ◦ Social responsibility ◦ Economic viability What is “sustainability” anyway?
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The three pillars: ◦ Environmental stewardship ◦ Social responsibility ◦ Economic viability We can measure it -- ◦ Environmental – soil erosion; water quality ◦ Social – working conditions, fatalities/injuries ◦ Economic – profit, land tenure What is “sustainability” anyway?
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Establish benchmarks, measure the level of sustainability, ◦ Are we making progress? ◦ Public policy analysis ◦ Comparing farms – an issue! Provide guidance to buyers Why Measure Sustainability?
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Leonardo Academy/ANSI Keystone Institute Stewardship Index for Specialty Crops Cool Farm Institute =============== Others (Walmart’s Sust. Consortium, Dairy, Potato, National Institute for Sustainable Ag, …) Measuring Sustainability - the Key Players:
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Keystone Center- Field to Market http://www.fieldtomarket.org/ http://www.fieldtomarket.org/
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Fieldprint Calculator -6 resource areas: Land Use – land per unit produced, all practices, including rotations. Soil Loss – based on Univ. Soil Loss and Wind Erosion models; accounts for soil, tillage, etc. Soil Carbon – function of organic matter added, field operations, soil erosion rates. Keystone Center- Field to Market http://www.fieldtomarket.org/ http://www.fieldtomarket.org/
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Irrigation Water Use – adds to the crop, but also energy and GHG; Energy Use – units of energy/production (e.g. BTU/bu. Corn); includes both direct and embedded energy in inputs; Greenhouse Gas Emissions – both direct and embedded; (seed, fertilizer, lime, tillage, etc.) Keystone Center- Field to Market http://www.fieldtomarket.org/ http://www.fieldtomarket.org/
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◦ Agricultural Contribution to GDP ◦ Implied Labor Hours ◦ National Fatalities ◦ National Debt to Asset Ratio ◦ Non-Fatality Injury ◦ Real Returns Above Variable Costs Keystone Center- Field to Market SocioEconomic Indicators
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What is “Organic”? A USDA labeling term, for products produced under specific protocols Requires certification Imports may be USDA certified “organic”
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Misconceptions Conventional farming – ◦ Over use of pesticides ◦ Disregard for environment ◦ etc. Organic farming ◦ Benign neglect ◦ Poor quality ◦ Etc.
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Misconceptions - production Conventional farming – ◦ Over use of pesticides ◦ Disregard for environment ◦ etc. Organic farming ◦ Benign neglect ◦ Poor quality ◦ Etc. ◦ Organic spray – spinosad or pyrethrin
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The Organic Marketplace
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Not true – the market slowed after the 2008 recession, but has regained its growth trajectory
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Market Opportunities for Organic Meats and Livestock ◦ Niche ◦ Mostly dairy, eggs, chicken ◦ Beef – but often mixed up with grassfed Issues: ◦ Processing ◦ Organic feeds
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Market Opportunities - Hort Focus on direct marketing, including farmers markets and CSAs Mostly urban markets – so location/ transportation cost is important “Local” tends to trump “organic” in many Kentucky markets Organic is becoming a commodity is some categories
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Organic Corn Enterprise Substitute tillage for chemical weed control Rotations for weed control and fertility Cost of production typically much lower Yields – 50% to 90% in long run Market – primarily as livestock feed and Kentucky is a deficit state Fewer outlets and risk management options
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Market Opportunities – Corn Demand as a livestock feed Price – 1.5 to 2 x conventional feed corn http://www.ams.usda.gov/mnreports/lsbnof.pdf
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– Madison, IN August, 2013 Organic Corn – Madison, IN August, 2013
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