Agriculture: Lessons from the Sustainable Agriculture Farming

The Profitability of Organic  The Profitability of Organic Agriculture: Lessons from the  Sustainable Agriculture Farming  Systems Project (SAFS) Syst...
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The Profitability of Organic  The Profitability of Organic Agriculture: Lessons from the  Sustainable Agriculture Farming  Systems Project (SAFS) Systems Project (SAFS) D K Dr. Karen Klonsky Kl k Dept. of Agricultural & Resource Economics University of California, Davis

Variety of research areas at Russell Ranch

Runoff plots Runoff plots

Riparian Reser e Riparian Reserve

Small plots Habitat Restoration area

Main plots Main plots

Organic plots

Farm buildings Farm buildings Conventional commercial farm

•Small plots for shorter term investigations: e.g., comparison of cover crop mixes, biofuels crops, impact of  continuous cover on soil biology, comparison of drip vs furrow irrigation •Runoff plots: impact of management on runoff of nutrients and pesticides •Large plots under organic management, currently unassigned •Conventional commercial farm: surrounding land leased by neighboring grower, managed conventionally •Habitat restoration area (as mitigation for UC Davis development) •Putah Creek Riparian Reserve adjacent to Russell Ranch

Russell Ranch / SAFS History Russell Ranch / SAFS History Events

Years 1992 – 1993

Russell Ranch purchased by UC Davis Irrigated, unfertilized Sudan grass planted to create uniform  soil fertility conditions soil fertility conditions

1994 ‐ 2007

Two‐year rotations of processing tomato and corn & others Organic, low input, and conventional Each system/crop combination each year

2003

SAFS relocates to Russell Ranch from Vegetable Crops facility

2003 2007 2003 ‐

Each system split into conservation tillage and standard tillage Each system split into conservation tillage and standard tillage

2008 ‐ present

Two‐year rotations of processing tomato and wheat Organic, low input, and conventional All t All systems are conservation tillage ti till

SAFS Systems and Rotations SAFS Systems and Rotations Cover crop p

Tomato

Corn

Organic

Low input

Conventional

Fall/Winter             Spring/Summer                      Fall/Winter         Spring/Summer

YEAR 1

YEAR 2

PRODUCTION PRACTICES AT SAFS PRODUCTION PRACTICES AT SAFS

Tomato Preplant Operations Tomato Preplant Organic g October/ November

Mow residue Plant cover crop

Conventional Mow residue Subsoil, disc, roll, triplane Prepare beds

December January

Spray weeds

February March

Spray weeds

April

Mow cover crop Apply compost Apply compost Ground prep Make beds

Smooth beds Starter fertilizer Starter fertilizer

May

Transplant

Transplant Sidedress fertilizer

Tomato bed management Tomato bed management 1. Strip till 1 Strip till 2. Full bed mulch 3 S i ill d il 3. Strip till detail

1

3

2

Fertility Organic

TOMATO Low Input

Cover crop

1994 ‐ 2006

2004 – 2006 only

Chicken manure

Rates reduced  after 1997 after 1997

Synthetic N

None

Organic  Cover crop Cover crop

1994 ‐ 2006 1994 

Chicken manure

Same as tomato

Synthetic N

None

Conventional

1994 – 2003 = conv 2004 – 2006 reduced

15‐15‐15,  ammonium sulfate

CORN Low Input

Conventional

1994 ‐ 2006

None

Urea

Fertility ‐ 2007 Fertility  Cover crop Poultry compost

Organic

TOMATO Low Input

Bell beans/vetch

Bell beans/vetch

4 tons Preplant 15 – 15 ‐15 @ 45 lbs. 

Synthetic N

Cover crop Poultry compost Synthetic N

Conventional

Organic 

CORN Low Input

Bell beans/vetch

Bell beans/vetch

Preplant 15‐15‐15 @ 45 lbs.  Sidedress 21 0 0 24 @100 lbs 21‐0‐0‐24 @100 lbs.

Conventional

4 tons Post plant 46‐0‐0 @ 165 lbs. Sidedress 15‐15‐15 @ 45 lbs.

Oats/vetch/bell bean mix Oats/vetch/bell bean mix

Reel chopping cover crop to initiate  d d dry down prior to incorporation

Cover crop and incorporation p p 2. Bell bean/wheat cover crop 2 Bell bean/wheat cover crop 3. Bed disc for full incorporation 4. Flail mowing cover crop l il i

Weed control ‐ 2007 Weed control  Organic

TOMATO Low Input

Conventional

Tillage

Strip till 5X Cultivate 4X

Strip till 5X Cultivate 3X

Strip till 2X Cultivate 2X

Hand hoeingg

35 hours

11 hours

6 hours

May  July

February  May  July

Herbicide

Tillage

Organic 

CORN Low Input

Cultivate 3X

Cultivate 2X

Conventional Cultivate 2X

Herbicide bi id May 

February Aprilil May

Pest control ‐ 2007 Pest control  TOMATO Low Input

Conventional

Insecticide/Miticide

Oberon 8.5 oz.

Oberon 8.5 oz.

Worms

Sulfur 20 lbs.

Sulfur 20 lbs.

Organic

Cultural Costs

COST OF PRODUCTOIN COST OF PRODUCTOIN

Costs of Production by Management Category Costs of Production by Management Category   Fertilityy

Weed control

Pest control

Tomato conventional

Tomato ‐ organic

Field corn ‐ conventional

Field corn ‐ organic 0

100

200

300

$ per Acre

400

500

600

700

800

Cost of Production ‐ Corn Cost of Production  Organic ‐ $465/A Organic ‐ Manage  residue $17  4%

Ground  prep $34  7%

Conventional ‐ $390/A Conventional ‐ Manage  Ground  residue prep $17  $ $23 $23  4% 6%

Cover crop Cover crop $75  16%

Compost $171  37%

Weed  control $29  6%

Plant $86  22%

Irrigate $80  21%

Plant $56  12%

Irrigate $83  18%

Weed  control $85  22%

Fertilize $99  25%

Comparison of Cultural Costs – Corn Organic $465/A ~ Conventional $390/A $23  $23 $34 

G Ground prep d Cover crop

$75 

W d Weed control t l

$85 $85 

$29 

Plant

$56 

$86 

Conventional $80  $80 $83 

I i Irrigate

Organic

$99 

Fertilizer/Compost

$171 

$17  $17 $17 

Manage residue 0

50

100 $ per Acre

150

200

Cost of Production ‐ Tomato Cost of Production  Organic ‐ $1,432/A Organic ‐ $1 432/A Manage Ground  Compost residue prep $184  $7  $45  Pest 13% Pest  1% 3% control $65  5%

Conventional ‐ $1,012/A Conventional ‐ $1 012/A

Cover  crop $72 $72  5%

Fertilize $96  10% Weed  control $379  26%

Irrigate $105  7%

Ground  Manage  prep residue $13  $39 $39  1% 4% Weed  control $205 $205  20%

Pest  control $73  7% Irrigate $90  9%

Plant $575  40%

Plant $496  49%

Comparison of Cultural Costs – Tomato Organic $1,432/A ~ Conventional $1,012/A 13 45

Ground prep Ground prep

0

Cover crop

72

Weed control

379 496

Plant

575

90 105

Irrigate

96

Fertilizer/Compost

Conventional Organic

184

73 65

Insect control Manage residue

7

0

39

200

400 $ per Acre

600

800

Yield and Price

REVENUE

Processing Tomato Harvester Processing Tomato Harvester

P Processing Tomato Harvester i T H

Processing Tomato Harvest Processing Tomato Harvest

Average Tomato Yields 2003 ‐ 2007 35 30

Ton ns per acre

25 20 15 10 5 0

Conv CT Conv CT

Conv ST Conv ST

Low CT Low CT

Low ST Low ST

Org CT Org CT

Org ST Org ST

2007 Tomato Yields 2007 Tomato Yields 45 40

Ton ns per acre

35 30 25 20 15 10 5 0

Conv CT Conv CT

Conv ST Conv ST

Low CT Low CT

Low ST Low ST

Org CT Org CT

Org ST Org ST

Average Corn Yields  2003 ‐ 2007 12000

Ton ns per acre

10000 8000 6000 4000 2000 0

Conv CT Conv CT

Conv ST Conv ST

Low CT Low CT

Low ST Low ST

Org CT Org CT

Org ST Org ST

2007 Corn Yields 2007 Corn Yields 45 40 35 30 25 20 15 10 5 0 Conv CT Conv CT

Conv ST Conv ST

Low CT Low CT

Low ST Low ST

Org CT Org CT

Org ST Org ST

Organic and Conventional Prices Processing Tomatoes 120 100

$ per ton

80 60

Organic Conventional

40 20 0 89

91

93

95

97

99

01

03

05

07

09

Organic and Conventional Prices Corn for Grain f 300 250

$ per ton

200 150

Organic Conventional

100 50 0 92

94

96

98

00

02

04

06

2007

NET RETURNS NET RETURNS

Revenue, Operating Costs, and Net Returns

PROCESSING TOMATOES 2007 PROCESSING TOMATOES 2007 Organic  g

Conventional

Low Input p

3,500  3,000  2,500 

2,865  2,190 

2,000  1,500 

1,644 

1 487 1,487  1,221  1,038 1,061 

1,000 

1,152  426 426 

500  ‐ Revenue

Cost

Net returns Net returns

Runoff as a Percentage of Rainfall Events  Cover crop  Cover crop – organic and low input organic and low input Manure – organic only Organic  g

Low Input p

Conventional

38%

36%

18% 10% 8% 3% 3%

4% 3%

Feb. 7

Feb. 9

3% 2%

2% Feb. 18

2% 3%

Feb. 20

4%

March 9

Revenue, Operating Costs, and Net Returns

CORN 2007 CORN 2007 Organic  g 1,200 

Conventional

Low Input p

1,075 1,074 

1,000  756 

800  590 

600 600  400 

485 485  312 

318 

265 

200 200  47  ‐ Revenue

Cost

Net returns Net returns

RESOURCE USE RESOURCE USE

Labor Hours by Management Category   Fi ld C Field Crops Machine Labor

Hand Labor

Tomato conventional

Tomato ‐ organic

Field corn ‐ conventional

Field corn ‐ organic 0

10

20 Hours per Acre

30

40

50

Fuel Use for Cultural Practices Fuel Use for Cultural Practices Fuel (Gallons/Acre) O

C

Tomatoes

57

51

Corn

33

37

Times over the Field O

C

Average Water Use Average Water Use Corn 50

44 37

40

Acre in nches 

Tomato

49

31 30

29 19

20 10 0

Organic

Low Input Low Input

Conventional

Sources of Nitrogen Sources of Nitrogen Organic Tomato

Low Input Tomato

Cover crop

1994 ‐ 2006

2004 – 2006 only

Chicken manure

Rates reduced  after 1997 after 1997

Synthetic N

None

1994 – 2003 = conv 2004 – 2006 reduced

15‐15‐15,  ammonium sulfate

Organic Corn

Low Input Corn

Conventional Corn

Cover crop Cover crop

Conventional Tomato

1994 ‐ 2006

Chicken manure

Higher than for  tomatoes

Synthetic N

None

None

Urea

Corn Nitrogen Inputs 02 ‐ 06 Corn Nitrogen Inputs 02  250

Kg N p per hectare e

200 150 Manure Cover Crop Cover Crop

100

Fertilizer

50 0 Conventional

Organic

Low Input Low Input

Tomato Nitrogen Inputs 04 ‐ 06 Tomato Nitrogen Inputs 04  250

Kg N p per hectare e

200 150 Manure Fertilizer

100

Cover Crop

50 0 Conventional

Organic

Low Input Low Input

ENVIRONMENTAL IMPACTS ENVIRONMENTAL IMPACTS

Corn Nitrogen  Inputs, Outputs, Balance l 250

Kg N p per hectare e

200 150 Inputs Output

100

Balance

50 0 Conventional

Organic

Low Input Low Input

Tomato Nitrogen  Inputs, Outputs, Balance l 250

Kg N p per hectare e

200 150 Inputs Output

100

Balance

50 0 Conventional

Organic

Low Input Low Input

Nitrogen Balance (Corn and Tomato) Soil Storage and Unaccounted Soil Storage and Unaccounted  Accumulated 1994 ‐ 2006 4,000 3,500 Kg N p per hectare e

3,000 2,500 2,000

Unaccounted

1,500

Soil Storage

1,000 500 0 Organic

Low Input Low Input

Conventional

Nitrous Oxide Emissions Nitrous Oxide Emissions 450

N2O  (mg/M2/hourr)

400 350 300 250 No cover

200

Cover Crop

150 100 50 0 C Conservation Tillage ti Till

St d d Till Standard Tillage

Nitrous Oxide Emissions Nitrous Oxide Emissions • Emissions Emissions were higher with winter legume  were higher with winter legume cover crops for both tillage systems • This may be the result of adding N to the soil  This may be the result of adding N to the soil in a form that can be transformed into N2O  under ideal soil moisture and temperature under ideal soil moisture and temperature  conditions

Soil organic carbon in the top 30 cm Soil organic carbon in the top 30 cm 55

Mg C per hectare e

50

Cover crop every year

High  input manure

45

Cover crop every  other year

Cover crop every year

Organic Low Input Low Input

40

Conventional

Conservation Tillage

35 30 1993

1995

1997

1999

2001

2003

2005

2007

Runoff as a Percentage of Rainfall Events Standard Tillage ‐ 1999 March 9

4% 3% 2%

F b 20 Feb. 20

4% 2%

Feb. 18 Feb. 18

Feb. 9

7‐Feb

35% Conventional

10% 8%

2%

Low Input Low Input Organic 38%

4% 4% 3% 3%

18%

Conventional — Winter Fallowed

Organic and Low Input — Winter Cover Cropped

Runoff Water Quality ‐ 2007 Runoff Water Quality  Conventional

Low Input

Organic

Applied

Detected

Applied

Detected

Applied

Detected

Tillam (herbicide)

X

x

X

x

‐‐‐‐‐‐

‐‐‐‐‐‐

Trifluralin (pre‐emergent herbicide)

X

‐‐‐‐‐

X

‐‐‐‐‐‐

‐‐‐‐‐‐

‐‐‐‐‐‐

M l hl (herbicide) Metolachlor (h bi id )

X

X

X

X

‐‐‐‐‐‐

‐‐‐‐‐‐

L‐cyhalothrin (pyrethroid insecticide)

X

‐‐‐‐‐‐

X

‐‐‐‐‐‐

‐‐‐‐‐‐

‐‐‐‐‐‐

Runoff Water Quality ‐ 2007 Low Input and Conventional Systems Standard  Tillage

Conservation  Tillage

% of Samples

% of Samples

Tillam (herbicide)

.05%

‐‐‐‐‐‐

Trifluralin (pre‐emergent herbicide)

‐‐‐‐‐‐

‐‐‐‐‐‐

Metolachlor (herbicide)

63%

25%

L‐cyhalothrin (pyrethroid insecticide)

‐‐‐‐‐‐

‐‐‐‐‐‐

Runoff Water Quality ‐ 2007 Pesticide Concentration Co oncentratio on in ppb (m mg/ml)

Low Input p

Conventional

0.35 0.3 0 25 0.25 0.2 0.15 0.1 0.05 0 Conservation Tillage

Standard Tillage

Note: No pesticides were found in organic system runoff

Sweeping Generalizations About  Organic Agriculture Organic Agriculture • • • • • • •

(at least in California) Relies on cover crops, compost, and sometimes liquid  p, p , q fertilizers Fertility costs more than for conventional Only crops that rely on hand hoeing for weed control  use hand hoeing in organic When used labor costs for hand hoeing are higher When used, labor costs for hand hoeing are higher Fewer pest and disease control tools are available Some crops are easier to grow organically than others Some crops are easier to grow organically than others Organic price premiums vary from crop to crop but are  not trending downward over time 

Cover Crop Impacts Not Captured in  Cost and Return Analyses d l • • • • • • • •

May delay planting in Spring May delay planting in Spring May replace a cash crop in a rotation Reduces winter runoff Reduces winter runoff Improves the quality of winter runoff I Increases carbon sequestration b t ti May increase greenhouse gas emissions Provides habitat Reduces erosion

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