Analysis of Determinants Affecting Organic Production: State Evidence from the United States

Abstract

As the demand for organic products quickly grows in the U.S., the domestic supply of organic commodities has stagnated and failed to meet the increasing needs. To expand the organic supply capacity in the country, it is crucial to identify the key factors that could effectively promote the scale of organic farming in the U.S. Using a multivariate analytic model and state level data from multiple sources and years, this study examines a wide range of determinants that could affect organic agriculture. The results show that research funding would significantly increase organic vegetable production and the number of organic farms. The development of organic farming could be greatly encouraged by the support of research institutions. In addition, the evidence shows that abundant farm workers are essential for the organic farming sector, which is labor-intensive. Finally, a large population base could create a more stable consumer group that would promote the development of organic agriculture. These results suggest the importance of exploring and expanding consumer groups for organic commodities. These findings provide insightful implications that research support, labor availability, and a solid consumer base are crucial to boost the organic sector in the U.S. and other countries.