Ontario Agriculture

The network for agriculture in Ontario, Canada

The Term “Organic” Losing its Luster

I’ve watched the organic farming movement with interest over the past 10 years or so. It’s not because I have any philosophical motivation to become an organic producer – I’m interested because smaller scale crop operations have to look for every opportunity to derive more revenue and margin from every acre.

I have great respect for those producers who make the commitment to an organic production system and make it work. It requires a significant step-up in management and there is a steep learning curve to farming without herbicides and chemical fertilizers.

Having said this, I’ve not made the jump for a number of reasons. Time and labor constraints being one – I’m not sure that I could be as efficient as I am now, and hiring more labor is not an attractive option for me. Secondly, I’ve been somewhat skeptical about the future of organic premiums and here’s why. Organic farming is not unlike any other innovative production system, whether it be no-till, strip-till or some other alternative to traditional methods. The common path is that smaller scale, innovative producers latch on to an idea, work to perfect it and learn all the hard lessons as they cut the path. Early adopters watch from the sidelines, and when there is a reasonable expectation for success, they jump in and improve on the process and take it to a larger scale. Ultimately, large scale conventional producers look at the economics and realize that their economies of scale enable them to derive larger benefits from the innovation and they go for it.

This pattern holds for organic food production, or at least it was headed in that direction. The strange thing about organic farming is that it brings with it a lot of philosophical and emotional baggage. Many people have difficulty looking at it as simply another production/business model. For some, a move to organic is all about a deep seated mistrust of major agri-business corporations. For others, it’s about a perceived benefit to the environment. It can be even be a lifestyle choice. For me, it would be all about profitability.

I’ll admit I’m less interested in organic production than I was a couple of years ago. The fickle consumer is showing less enthusiasm for more expensive organic food as the recession hits many food buyers in the pocketbook. Also, the marketers have been quick to grab the word “organic” so it’s difficult for consumers to know what the word really means anymore. Recently I heard of an individual selling “organic” firewood at a local folk festival – sheesh. And a recent study by the London School of Hygiene and Tropical Medicine found no real nutritional advantage to organic food compared to conventional.

But the real deterrent for me is the simple fact that as large scale producers enter the organic realm, per unit premiums for organic production will also come down. There are organizations that say a 12,000 head organic dairy farm is not what the organic movement is all about, but if Wal-Mart is going to sell organic milk, it’s going to come from large production units. Supply and demand rules, whether it’s organic or not and there is no way to regulate this sector to keep the big guys out.

For now, I’m on the sidelines. Nothing against the organic business model, but it’s not for me at this point.

What about you? Have you moved to an organic program? Have you considered a shift to organic? Will this niche market continue to grow or suffer some speed bumps?

Click here to join the discussion.

Peter Gredig
Farms.com Media
Peter.Gredig@Farms.com

Follow me on Twitter – I’m Agwag!

This commentary is for informational purposes only. The opinions and comments expressed herein represent the opinions of the author--they do not necessarily reflect the opinion of Farms.com. This commentary is not intended to provide individual advice to anyone. Farms.com will not be liable for any errors or omissions in the information, or for any damages or losses in any way related to this commentary.

Views: 27

Reply to This

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Hursh: Court documents reveal scope of Monette Farms' financial challenges

As reported on Wednesday, Monette Farms and its many affiliated companies have filed for creditor protection. The court document filed at Court of King's Bench in Calgary provides insight into the size and scope of Monette's operations and the extent of their financial difficulties. According to the court document, the Monette Group forms one of the largest private farming businesses in North America with operations in Alberta, Saskatchewan, Manitoba, B.C., and the states of Montana, Colorado and Arizona. The group owns approximately 274,000 acres of land and leases approximately 218,000 acres. It also has seed processing and produce storage facilities. The restructuring plan is debtor-in-possession financing, because the applicants are insolvent and don’t otherwise have the finances to seed a crop this spring. Monette did recently sell some farmland, most notably about 13,000 acres near Stewart Valley, Saskatchewan for $54 million. Subsequent activity resulted in two more sales t

Removal of non-tariff trade barrier for flaxseed to the EU reflects confidence in Canada’s agricultural exports

Canada is one of the world's largest producers and global exporters of flaxseed. Our high-quality products are enjoyed by millions of people around the world on a daily basis. May 1, 2026, will mark the official termination of the longstanding Sampling and testing protocol for Canadian flaxseed exported to the European Union (the Protocol). Removal of this non-tariff barrier, that has been in place since 2009, is a recognition of the safety, reliability and quality of Canadian agricultural and agri-food exports. This demonstrates the strength of the Canada-EU Strategic Partnership and a shared commitment to resolving long-standing trade irritants through cooperation and dialogue. In July 2009, trace amounts of an unauthorized genetically modified flaxseed called CDC Triffid was detected in a Europe-bound shipment, leading to the immediate and temporary cessation of flaxseed exports. Following the detection, AAFC worked diligently with the Canadian Grain Commission (CGC), industry par

Cereals Canada Releases "Securing Global Markets for Canadian Wheat" Report

Cereals Canada today released its new report, Securing Global Markets for Canadian Wheat, during a webinar that brought together farmers, researchers, plant breeders, and value chain partners from across the sector. The report outlines how targeted market development, technical engagement, and science-based policy advocacy are helping to protect, maintain, and grow global demand for Canadian wheat in an increasingly complex trade environment. Canadian wheat is exported to more than eighty international markets each year, with over twenty-eight million tonnes expected to ship globally in 2025–2026. Canada is the world's number one exporter of durum wheat and oats and is on track to be the third-largest wheat exporter overall, reinforcing the importance of diversified and stable international demand. The Securing Global Markets for Canadian Wheat report provides a snapshot of six international markets that were part of Cereals Canada's 2025 market development activities. These activiti

Monette Farms Seeks Court Protection as Mega-Farm Restructures Amid Financial Pressures

Monette Farms has entered court-supervised restructuring under the Companies’ Creditors Arrangement Act while continuing operations across Canada and the United States.

Removal of non-tariff trade barrier for flaxseed to the EU reflects confidence in Canada's agricultural exports

Canada is one of the world's largest producers and global exporters of flaxseed. Our high-quality products are enjoyed by millions of people around the world on a daily basis.

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service