By LINDA McGURK
Indiana Correspondent

CLINTON, Ind. — With sales nearly hitting $14 billion in 2005 – an increase by 16 percent from the previous year – organic food is reaffirming its position as the fastest growing sector in the U.S. food industry, now accounting for 2.5 percent of all sales.

Even though the organic food industry as a whole has been growing consistently by double digits since 1997, when reliable data first became available, Indiana has been slow to catch on to this trend.

But last year, the number of operations certified through Indiana Certified Organic (ICO) suddenly jumped from 48 to 89.

“Organics are now growing so fast, we’re literally granting certifications every day,” said Cissy Bowman, organic farmer and executive director of ICO, the only Indiana certification organization accredited by the USDA.

Compared to surrounding states, however, organic food production in Indiana is still in its infancy. Bowman explained there are several reasons for that, a lack of processing plants being one of them.

“Everybody that handles or processes organic products must be certified, and until now we’ve lacked the infrastructure for that in Indiana,” Bowman said.

For example, Hoosier farmers who raise organic cattle previously had to send their animals to certified slaughterhouses out of state, which could be cost-prohibitive.

The certification of Lone Pine Farms Moody Meats Inc, a small livestock farm and meat processing plant in Ladoga, Ind., now provides them with an in-state option.

As more food handling facilities get USDA’s green-and-white “Organic” seal of approval, and the assortment of organic novelty products grows, organic farmers in Indiana will be able to process more and more of their produce regionally.

In addition, industry giants like farmer-owned dairy cooperative
Organic Valley and Wisconsin-based Egg Innovations try to spur growth by breaking into the market in Indiana.

“We’re seeing a lot of interest in organic dairy and livestock. I think it has the potential to really grow in the next couple of years,” said Bowman.

According to the Organic Trade Assoc., “organic production is based on a system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.”

Certified livestock must be fed organic grains or graze organic pastures, and are raised without the use of antibiotics, synthetic hormones and genetic engineering.

To become certified, land and soil on the prospective farm must be managed for three years according to accepted organic practices.

During this transition period, produce from the farm must not be sold as organic, and that can pose a big challenge for farmers wanting to convert their operation, according to Corinne Alexander, an ag economist at Purdue University, who worked with Hoosier farmers to develop crop budget numbers for organic production.

“Converting to organic production is a substantial investment,” Bowman said. “But once you’ve converted you can get a fairly substantial premium on your produce. This means small farmers who are not able to grow in size can derive more income by adding value to their products.”

Alexander said there are a growing number of resources available for farmers interested in organic production. One of them is the New Agriculture Network, a collaborative program that is run by Purdue University, the University of Illinois and Michigan State University, and aims to bring seasonal advice to organic farmers.

“I think organics have reached a tipping point nationally,” Alexander said. “Organics are no longer a fringe product, they’re now sold at supermarkets like Whole Foods and Wal-Mart, and they are becoming mainstream.”

The Indiana State Department of Agriculture (ISDA) has also noticed an increased interest in organic agriculture. Sarah Yeager, a program manager of diversification at the ISDA, often gives advice to Hoosier farmers who are thinking about taking the leap.

“It is something that we receive a lot of questions about right now,” Yeager said. “I think (farmers) are seeing that it’s a growing market segment and a growing market opportunity.”

Yeager said there are some cost-share options available for farmers interested in going organic. The ISDA reimburses 75 percent of the cost of the organic certification up to $500, and through the Environmental Quality Incentives Program (EQIP), an incentive payment of $50 per acre is available for cropland that is converted to organic farming. Organic producers may also qualify for other EQIP incentives.

Organics on the web:
•National Organic Program - www.ams.usda.gov/nop
•Organic Trade Assoc. - www.ota.com
•New Agriculture Network - www.new-ag.msu.edu