State of Organic Farm Sales

The United States Department of Agriculture (USDA), the certifying body for organic food products in the US, has conducted the first widespread census of the nation’s 14,540 organic farms.

The most popular sales outlets for organic farms are wholesale markets, accounting for 82.6% of sales.

Direct-to-consumers sales, through farmers’ markets and community-supported agriculture (CSA), make up only 6.8% of sales.

Within the wholesale distribution channel, the majority of sales are to major food processors and distributors.

Given the fact that most of organic farm sales occur in the wholesale channel, it is somewhat surprising that 44% of sales are sold locally (within 100 miles).

Roughly 30% of sales are within the region. The survey did not cover, however, how far organic foodstuffs traveled before reaching the consumer via the wholesale market.

Reacting to increased demand, the majority of organic farms plan to maintain or increase organic production in the next five years.

“Organic products have shifted from being a lifestyle choice for a small share of consumers to being consumed at least occasionally by a majority of American,” reported the USDA Economic Research Service.