The 2008 recession saw some organic growers switch to conventional but new initiative hopes to get farmers to transition back
The number of organic farmers on the Prairies may be on the rebound after several years of decline or stagnant growth.
Wally Hamm, general manager of Pro-Cert Organic, said more than 100 western Canadian farmers are considering the transition to organic production with Pro-Cert.
That’s a significant gain, considering there are only 1,400 to 1,700 organic farmers on the Prairies.
The increase would reverse a reduction that began around 2009-10, when prices for organic commodities plunged following the global recession in 2008.
At the same time, a shortage of conventional grains and oilseeds pushed prices to near record levels for corn, beans and wheat. Many organic growers dropped out to take advantage of the market opportunities in conventional agriculture.
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According to the Canadian Organic Trade Association, Saskatchewan lost 24 percent of its organic farmers between 2011 and 2013.
Organic prices recovered quickly, reaching unprecedented levels in 2013 and 2014. Milling wheat frequently topped $25 per bushel and golden flax was sold for $40 per bu.
However, Canadian farmers didn’t move to or switch back to organic, despite 300 percent price premiums over conventional.
Hamm took action to remedy the situation last year by launching an initiative to educate farmers about the economic opportunities in organic farming. Pro-Cert published a booklet called The Organic Advantage, and Hamm spoke to farmers from Ontario to British Columbia.
“There has been a tremendous vacuum of information,” Hamm said.
“They (farmers) were loosely aware that there was an advantage, pricewise … but they weren’t fully aware of what happens when you combine the price advantage with a cost (input) advantage.”
Hamm said 80 percent of the 100 farmers moving to organic are conventional producers.
He said the outreach effort, combined with lower prices for conventional commodities, probably prompted the switch.
Art Hesje, general manager of TCO Cert, said they are also seeing an increase in the number of producers beginning the transition to organic.
Laura Telford, Manitoba Agriculture’s business development specialist for organic agriculture, is also reaching out to conventional farmers about the economic advantages.
She held a meeting at Ag Days in Brandon this winter, which 40 conventional producers attended.
As well, she has spoken directly with farmers who are considering organic.
“I’ve been working one on one with what I would call tire kickers. About 16 of them.”
Sixteen isn’t a large number, but Manitoba’s organic industry is small.
“Last year, COTA estimated that there were 126 organic producers in Manitoba. I count 134 now,” Telford said. “I’d like to see Manitoba get back to where it used to be. My understanding is during the heyday of organic (the mid-2000s), we had 250 organic producers.”
Hamm said that sort of increase is possible because the significant price premiums for organic grains and oilseeds could last for five years or longer.
“There is just tremendous shortfall of supply…. There are all kinds of products that would go on the market, but there isn’t supply,” he said.
“If you work the numbers, there won’t be any real increase in supply until 2017-2018 … with the 36 month transition period (to organic).”
The Prairies may gain 100 new organic producers a year for several years if prices remain high.
“I think you’re going to see that same kind of number, over the next two or three years.,” said Hamm.
