There have been signs of organic price premiums narrowing in recent years, which lowers the economic incentive for farmers to convert to or maintain organic production methods. Data from 22 years of experiments at the Rodale Institute found that, based on the current yields and production costs associated with organic farming in the United States, a price premium of only 10% is required to achieve parity with conventional farming. A separate study found that on a global scale, price premiums of only 5-7% were needed to break even with conventional methods. Without the price premium, profitability for farmers is mixed.
There have been signs of organic price premiums narrowing in recent years, which lowers the economic incentive for farmers to convert to or maintain organic production methods. Data from 22 years of experiments at the Rodale Institute found that, based on the current yields and production costs associated with organic farming in the United States, a price premium of only 10% is required to achieve parity with conventional farming. A separate study found that on a global scale, price premiums of only 5-7% were needed to break even with conventional methods. Without the price premium, profitability for farmers is mixed.