Wisconsin-based farmer cooperative Organic Valley alone has taken on more than 300 new dairy farmers since last year and is still recruiting, anticipating that new lines of organic dairy products and continuing consumer interest will close the gap between supply and demand by the end of next year.

“This is really the first year since at least 1999 that we’ve been long on milk. But we knew it was coming, and it’s a one-time issue,” said Joe Pedretti, farmer relations manager at Organic Valley, referring to a rule change that triggered many farmers to transition to organic last summer.

Prior to June 7, 2006, dairy farmers transitioning to organic production were allowed to feed their herds 80 percent organic and 20 percent conventional grain up until 90 days prior to certification, keeping costs down during the mandatory one-year transition period.

But as a result of a lawsuit, federal regulations now require farmers in transition to feed their herds 100 percent organic grain through the whole one-year grace period.

Farmers who started their transition prior to June 7, 2006, were exempted from the new rules, which spurred many producers to try to beat the grandfather date. When those producers all came online this year, they created a flood of organic milk.

Normally, Organic Valley doesn’t recruit more farmers than demand can support, thereby protecting its producers from falling prices. This year, the company decided to take a financial hit and absorb the cost of the oversupply.

“We had to sell some of our organic milk on the conventional market. Fortunately, milk prices have come up a little,” Pedretti said. “We expect a continued 15 to 20 percent growth rate (for organic milk) in the foreseeable future, which means there will be a need for more producers. We’re already looking at a deficit in 2009.”

Perry Lehman, an Amish dairy farmer in Middlebury, Ind., became certified last year after going through the three-year transition period required for pastures and cropland, and the one-year transition period required for his 65 cows.

“We had used intensive grazing since 1993 and were almost organic already. I really liked the idea of using natural farming practices without chemicals, and the stable milk prices,” he said about the decision to go organic.

“There’s quite a group (of organic dairy farmers) up here now, and there are quite a few families waiting to get on as soon as demand goes up,” he added. “I believe (organic farming practices) could revive the small family farm.” Lehman said he experienced a sharp learning curve the first two years of the transition, but received a lot of support and education from Organic Valley.

Larry and Patti Vogel also found themselves swamped with questions while transitioning their young 20-head dairy herd to organic production, and the couple frequently turned to the company’s special hotline for answers.

“I was really impressed with their philosophy,” said Patti. “They seemed very sincere and I could tell they were taking good care of their farmers.”

The Vogels had been toying with the idea of going organic ever since they bought 12 acres of virgin land near Franklin, Ind., six years ago and the prospect of more stable milk prices, paired with a solid belief in organic farming practices, ultimately made them take the plunge.

“You get paid more, but you have more expenses too, so it boiled down to doing what we really believed in. And we really believe in this philosophy,” Patti said.

Organic Valley’s hotline was set up a few years ago to assist farmers in various stages of transitioning to organic, as well as those who are just curious to learn more about the practice. The company prefers dairy farmers who are fairly self-sufficient with feed, since organic grain tends to be expensive, but Organic Valley also tries to encourage crop farmers to take advantage of the burgeoning organic market.

“Part of our job is to educate and help farmers make decisions,” said Pedretti. “Organic farming is such a personal choice and we fully realize that it’s not the right decision for every farmer.”

Vogel and Lehman attribute improved fertility and better cow health on their farms to their organic farming practices, and were optimistic about the niche’s future. But Lehman said organics require farmers to keep an open mind.

“It’s for everybody who can change their way of thinking,” he said. “In my farming career of 21 years I’ve stayed open-minded, and that’s made me able to survive and stay profitable.”