Farming News - US farmers to move to organic and non-GMO
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US farmers to move to organic and non-GMO
US farmers are said to be considering a move to organic and non-GMO crops in the wake of low commodity prices and failing GMO traits.
With low soybean and grain prices, premium prices for organic and non-GMO crops are proving a more favourable option for some US farmers.
One Illinois seed company reckoned non-GMO seed sales were 'significantly higher' than last year whilst another reckoned sales of conventional corn were higher by the end of November than they were all of that year.
As the price of non-GMO seed is cheaper and non-GMO corn and soybean sells for a higher price, producers gain a wider margin and don't need to use as much working capital.
Similarly, conventional corn is cheaper to grow and whilst demand for non-GMO corn is increasing, demand for conventional corn is increasing even more.
Some seed companies have seen an increase of fifty percent in sales of non GMO seed whilst others said they had sold more non-GMO seed in the past year than they have in e past five years.
Coupled with this, concerns over GMO traits failing, have made some farmers switch. As resistance builds, traits combatting root worm and weed species are becoming less effective.
“You have people questioning the value of the Roundup gene," reckoned Bob Hartzler of Iowa State University.
“How many are doing it (changing production) because of that concern, I don’t know," he added.
Organic farming has also been considered as a serious option by many producers as the market is expected to see significant growth this year.
As returns are low for typical arable farming businesses, many producers have been said to be looking at more profitable niche markets such as organic.
Various key players in the US such as Wal-Mart and McDonalds have expressed interest in bringing affordable organic food into their outlets which is giving farmers more confidence in the sector as organic grains trade for about double the price of conventional.
As growing gets underway it remains to be seen how much affect these various factors will have on the GMO, conventional and organic markets.