How the Organic Label Hurts Organic Farmers

We have become a country of consumers that rely on labels to tell us what food we should buy. For better or worse, this means that terms such as "organic" and "free-range" carry more weight than ever. Unfortunately for the country's small-scale organic farmers, this reliance on labels is restricting where and at what price they are able to sell their chemical-free products.

Even though USDA organic certification would open up new market opportunities for these farmers and allow them to sell their products at a premium price, many have chosen not to pursue certification because of the high costs imposed by the USDA. For example, Wally Niezguski farms just a quarter acre of organic vegetables in Michigan, but was told he would have to pay between $1,000 and $4,000 per year to label his products as USDA organic. Niezguski says he brings in just $2,500 a year selling his vegetables, making it "hardly worth the cost to get certified."

In the early days of modern organic farming in America, most of the farm products grown without the use of pesticides and fertilizers were sold locally. This fact has led consumers to believe that when they purchase organic products, they are supporting small family farmers. However, statistics show this is not the case.

According to the Organic Trade Association, 92 percent of the organic food that is consumed worldwide is sold by mass market and natural retailers (think Walmart and supermarket chains). Only 8 percent of organic food is purchased at farmers' markets, CSAs, and through other direct-to-consumer marketing vehicles.

This statistic shows that it is not the small, organic farmers in the U.S. (and around the world) that have benefited from the organic label. It's almost unheard of for a small-scale farmer to produce enough of a product to sell to a mass market retailer like Walmart. Instead, it's the giant, corporate organic farms in California and other states that are reaping the majority of the benefits of the now $21 billion per year organic industry.

USDA organic certification has become nothing more than a marketing ploy used by large businesses to sell premium products to consumers that believe that are supporting family farms, when really they are just lining the pockets of agribusiness. If you truly want to support farmers that are producing food in environmentally sustainable ways, it's important to support your local farmers. Buying organic spinach at Whole Foods is not an acceptable alternative.

Photo credit: Tim Psych