Spring weather has taken a toll on U.S. organic commodity producers, evidenced by a significant drop in overall corn and soybean production for 2019, according to a new report from Mercaris, the nation’s leading data and trading platform for organic and non-GMO markets.

The fall 2019 Mercaris Organic Commodities Outlook predicts a 12 percent year-over-year decline in organic corn production and a 14 percent decline in organic soybean production due to challenges during spring planting.

“Despite overall industry growth remaining positive this year, the production outlook for many key organic crops is expected to be down for 2019/20 following challenging growing conditions,” said Ryan Koory, Director of Economics at Mercaris.

In the Corn Belt, Mercaris estimates organic wheat production will see a 19 percent decline. However, overall U.S. organic wheat production is predicted to increase 7 percent over 2018 thanks to gains in areas outside of the Corn Belt, namely the High Plains and West regions.

“The industry appears set to see imports escalate over the coming year as organic grain purchasers look to offset reduced domestic production,” Koory said.

Organic livestock production growth is expected to slow but will still see a 1 percent increase overall. Because of that, imports should bridge the gap between domestic organic feed demand and U.S. 2019 production.

The fall 2019 Mercaris Organic Commodities Outlook offers additional details for 2019/20 organic commodity markets including expectations for use, price premiums, and specific data for corn, wheat, and soybeans.


Source: Agropages