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Organic production may rebound on lower feed costs

Prices for organic corn and soybeans continue to fall and could lead some poultry producers to expand their organic operations, one economist says.

Organic Broiler Chickens
Verrone | BigStock.com

After several years of volatility — from broader market dynamics as well as some specific to the organic sector — organic producers might be looking to catch a break on feed costs this fall.

Prices for soybeans in particular soared after the U.S. ended its recognition of India's organic certification programs in 2021. That, in turn, prompted a more than 40% increase in U.S. organic soybean production, said Ryan Koory, vice president of economics for Mercaris, an Argus Media company.

But prices began to moderate this year, Koory said, falling from US$40 to US$45 per bushel to US$26 to US$27 per bushel. Lower prices seemed likely to curb producers' enthusiasm for soybeans, and reports from dealers of organic seed indicated a possible 15% decrease in soybean acreage accompanied by a 10% increase in corn acreage.