Prices for most crops plummeted last year, but there is one notable exception.
Organic prices have held up nicely and are selling for two to three times the value of their conventional counterparts.
“We think this is probably the best news we’ve had in organic agriculture in Western Canada, certainly for 10 years,” said Wally Hamm, a certifier with Pro-Cert Organic.
He recently published a comparison of conventional and organic crop prices in the winter 2014 edition of Pro-Cert’s newsletter. His organic price estimates are based on conversations with traders and farm news publications.
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A sampling of some of the organic prices he listed includes $15 per bushel for spring wheat, $16.50 per bu. for durum, $7.50 for feed barley and $30 for flax.
Hamm said those are conservative and dated estimates. There are now spring wheat bids of $22 per bu. and flax bids of $34 per bu.
He said a lack of supply in Western Canada because of a mass exodus of farmers from organic production is a major reason why organic prices have held up.
“This is a major concern for us as an industry,” he said.
“We want to rebuild our production base in Western Canada.”
He estimates that Saskatchewan has 1,000 organic producers, down from a peak of 1,300 before organic prices slumped following the 2008 global economic meltdown. It was a 23 percent decline in organic farmers.
“Some people might even say higher,” said Hamm.
“We lost a tremendous number, a large percentage of our organic producers.”
He thinks a lot of organic land was lost because conventional farmers who wanted to plant more canola offered to rent or buy land at exorbitant prices.
As well, a lot of organic supporters are old and the younger generation isn’t interested in continuing with organic farming, especially at a time when conventional prices are so high.
“They’ve become conventional-minded. They like the scale, I suppose. Maybe it’s peer pressure,” Hamm said.
“But there is definitely a dearth of young people who say, ‘I want to get off the conventional treadmill.’ ”
Others in the organic industry have speculated that the wet weather of recent years has caused excessive weed problems, which discouraged growers from staying in organic production.
Hamm said the shortage of organic crops is forcing processors to import product from far and wide. He knows of one buyer who was in Argentina a couple of weeks ago looking for wheat.
“They’re going wherever they can get it,” he said.
Hamm said the demand for organic products remains strong, spurred by growing consumer skepticism over genetically modified crops.
He believes the high prices are here to stay and hopes today’s healthy organic premiums will convince more growers to embrace organic production, although the three-year transition rule means it won’t affect supply until 2016.
Hamm believes Pro-Cert could attract 100 new clients with a little advertising this year.
