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  • From: "Jill Taylor Bussiere" <jdt AT itol.com>
  • To: <market-farming AT lists.ibiblio.org>
  • Subject: [Market-farming] ECONOMIC Benefits of organic and IRV over "conventional" farming
  • Date: Tue, 4 Feb 2003 07:37:00 -0600

This is some background research that I did for a planner in the region - he
asked that I look into the benefits of organic and rotational grazing. So
it is not exactly what you asked, Rick, as to some examples of why
"conventional" farming is not good for the land or for us, but it does
approach some of the issues. I send this on because I do not have much time
these days and it will address the question at least in part. Also, since
this was written, there are a few new sources of funding for research for
organic agriculture in the newest Farm Bill, and also for organic methods -

"Value-Added Product Market Development Grants Program is a competitive
grants program available to farmers who want to develop a value-added
enterprise or grow an agricultural product in a way that adds value to the
product. Value-added is defined to include how the product was grown, i.e.
free-range, organic, sustainable, pastured, grass-fed, etc. The Cooperative
Business Service plans to begin accepting proposals in mid June of 2002.
Forty million dollars per year through the life of the Farm Bill are
available for this program."

- so that is little plus of the new Farm Bill, to help offset some of the
minuses. - Jill




Economic Benefits

It is tough to remain a farmer these days. Wisconsin lost nearly 15,000
dairy farms between 1990 and 2000. That is about 4 dairy farms each day.

Yet there are strategies that make it easier to start and to remain in
farming. Although they are not mainstream strategies, and are not supported
by government subsidies or by University of Wisconsin research information,
still, they have proven themselves to be solid strategies for small to
mid-sized farmers to employ.

Farmers have shown two strategies, Intensive Rotational Grazing, and Organic
Dairying, to be effective in their endeavor to have a profitable dairy
farming business. The strategies can be used separately or together.

Organic dairy producers who are members of Organic Valley Cooperative will
be receiving a base price of $17.90 per hundredweight, with the possibility
of bonuses for butterfat and protein. In addition, should their cooperative
show a profit, each member has a say in where that profit should go, and
some of it comes back in dividends to each member. Wayne Leubke and his
son have been organic dairy farmers for 3 years. They milk 50 cows. They
recently had the opportunity to expand to 70 milking cows, and chose not to.
They can make a living with the size herd they have, with the addition of
Mrs. Leubke's off-farm income.

Organic Valley Cooperative, which began with 7 farmers in Wisconsin, is now
the largest organic cooperative in the United States, with 420 farmers in 17
states. The demand is larger than their current supply of milk. The
organic industry is growing. Nationwide, organic purchases have been
increasing 20% each year. (to find out more about Organic Valley, see
http://www.organicvalley.com/who/index.html)

As a member of this organic cooperative, a farmer has more control over
his/her livelihood, no longer being a victim of the agribusiness dominated
marketplace, but rather a participant in marketing one's own product.

According to Wayne Luebke, since the price per ct is higher, fewer milking
cows are needed in order to make it. He feels that smaller farms are less
stressful, adding to a higher quality of life, and better health for the
farmer.

Both the Luebke and the Kinstetter families practice Intensive Rotational
Grazing. Both report lower veterinarian bills, less work, more leisure
time, fewer inputs, and a better life. Since the cows go out and find their
most of their own food on pasture, and spread their own manure, some of the
tasks of the conventional farm are eliminated. Two studies by Wisconsin
Progress in Agricultural Technology report the same findings. "Those
already farming who switched to MIRG report strongly positive changes:
investments in farm machinery and labor use declined, family free days or
vacation days increased, net farm and total household income increased, herd
health improved, and herd size is increasing..the capital outlay is lower
than for confinement dairying. In addition, since more free time is
available to those engaged in its practices, MIRG farmers are more able to
hold off-farm jobs, making their venture into farming more financially
secure." Grazing in Dairyland: The Use and Performance of Management
Intensive Rotational Grazing Among Wisconsin Dairy Farms by Douglas
Jackson-Smith, Bradford Barham, Monica Nevius, Rick Klemme November, 1996

Another study by the same authors, called Management Intensive Rotational
Grazing Among Wisconsin Dairy Farms: A Brief Summary of Recent ATFFI
Research Results, reports that although milk production of MIRG herds is 20%
lower, still, MIRG dairy farms are economically competitive with other dairy
farms. Farmers using this method are more optimistic about their future in
farming, and see themselves as more likely to expand the size of their dairy
herds. Farmers using this strategy tend to use fewer production maximizing
technologies and business management practices.

Because fewer inputs are required for MIRG, it makes it less difficult for
those who are starting out in farming to get started. Since the average age
of farmers in the US is up to 54, starter friendly strategies are important
to help ensure a supply of farmers.







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