What Accounts for the Higher Cost of Organic Food?

March 2, 2025 TruthUSA

A wide array of market dynamics, ranging from government subsidies to input costs, influence the pricing of organic foods.

In the United States, grocery consumers are presented with a multitude of choices, each accompanied by a diverse array of prices.

Generally, products labeled as organic command a higher price compared to their non-organic counterparts, yet many buyers lack understanding of the market dynamics involved in these price differences.

Historically, premiums for certain items, such as spinach in 2015, reached as high as 170 percent, but these figures have been decreasing, and current premiums stand at roughly 20 percent above conventional produce, as reported by the U.S. Department of Agriculture (USDA).

While all agricultural producers encounter some level of regulatory requirements at the federal, state, and local levels, organic farmers face a more extensive set of regulations.

Organic production is subject to stringent regulations—prohibiting genetically modified organisms and roughly 700 chemicals utilized in conventional farming—along with a mandatory certification process.

To obtain organic certification, farmers must invest countless hours and thousands of dollars yearly to meet record-keeping regulations and undergo routine inspections of their documents and facilities.

In contrast, non-organic farms do not incur such overhead expenses, leading to lower pricing in their product offerings.

During growing seasons, the operational costs for organic farms are higher for various reasons, and subsidies that predominantly favor chemically intensive farming practices further compound the pricing differences, as stated by advocates for the organic sector.

Since 2018, a mere 2 percent of federal research funding has been directed towards organic food production, according to data compiled by the Organic Trade Association.

“We would greatly appreciate more equitable distribution of research funding, especially since organic studies tend to benefit the broader agricultural industry,” a representative for the trade organization shared with The Epoch Times.

Historical research into integrated pest management—which involves utilizing beneficial insects to control invasive pests—was initiated by organic farmers, but those findings are now widely adopted.

A study from the U.S. National Institute of Health revealed a 95 percent decrease in insecticide usage when pests are managed through natural methods.

With the majority of federal research funding directed towards non-organic practices—such as the use of pesticides and herbicides prohibited in organic farming—critics argue that the system favors farmers who employ a broader spectrum of chemicals.

This has led to significantly lower prices for certain non-organic foods, including highly processed fast food items, in comparison to organic, natural products.

Currently, advocates are urging federal lawmakers to enhance funding for organic agriculture research.

More Expensive Inputs

Organic farming inputs, such as manure, alfalfa meal, and composting materials, are generally more expensive than synthetic alternatives like urea and ammonium nitrate, with costs estimated to be 20 to 50 percent higher for organic fertilizers.

Conventional farms rely on synthetic substances developed since the 1950s with the advent of chemically intensive methods.

Organic farmers practice crop rotation and employ cover crops to enhance nitrogen levels in the soil, promoting soil health, improving water retention, outcompeting weeds, and diminishing insect populations.

Application of natural fertilizers and the planting or plowing under of cover crops like clover and winter rye often entails significant labor or heavy equipment costs, further increasing production costs.

Labor Intensive

Weed removal represents one of the most costly aspects of organic farming, where mechanical methods such as weed eaters or flamethrowers are preferred, requiring extensive labor hours to eliminate unwanted plants.

“During certain times of the year, we spend more time removing weeds than on any other task,” stated Juan Guzman, a managing farmhand for organic vineyards in Northern California, in an interview with The Epoch Times.

“This task is critical because weeds will absorb nutrients from the vines and decrease our yields if not addressed.”

Conventional farmers often utilize glyphosate, marketed as Roundup, to manage weed growth. The lower cost of this chemical is balanced by its ease of use, which helps reduce overall production expenses.

Supply and Demand

The age-old forces of supply and demand also play crucial roles in pricing, as health-conscious consumers increasingly seek high-quality foods while production levels have plateaued in recent years, with organic yields generally being lower than those of conventional crops.

The organic market remains relatively thin, with fewer producers than the conventional sector, creating a scenario where more dollars are competing for fewer goods, consequently driving up retail prices.

To satisfy this demand, imports of organic produce have been on the rise, with over $4 billion worth of goods imported in 2023, as per USDA figures.

However, profit margins for organic farms tend to be slightly below the national average for non-organic farms, estimated to range from negative 3 percent to just above 20 percent, according to a report published by the National Center for Appropriate Technology in 2019 report.

Consumers Want Healthy, Affordable Food

Demand for organic foods is at an all-time high, with about $64 billion in certified organic food sales in the United States last year, a significant increase from approximately $11 billion in 2000, according to the Agriculture Department’s 2025 situation report.

Families across the United States are prioritizing healthy living, leading to a growing movement that favors a return to traditional farming methods devoid of synthetic chemicals.

“I don’t want harmful substances in my child’s body,” expressed Megan Armstrong, a Huntsville, Texas resident and mother of a 3-year-old, in an interview with The Epoch Times.

“The extra cost is worthwhile for my child’s safety.”

Texas mother Kelsey Facundo shared her commitment to organic foods for her children, acknowledging that she and her husband often have to make budgetary sacrifices.

A homesteading mother remarked on the notable disparity in quality between organic and conventional meats.

Organic livestock are nourished with certified organic hay and grains, permitted to graze freely, and are strictly prohibited from consuming genetically modified grains, which are commonly fed to conventional livestock.

“I’ve started sourcing all my meat from local butchers,” said Shanna Dixon in an interview with The Epoch Times.

“The flavor is distinctly superior, revealing the quality of the processing from farm to table.”

Recently appointed Health and Human Services Secretary Robert F. Kennedy, Jr. has been a long-time advocate for organic agriculture as part of his Make America Healthy Again initiative, and many supporters are closely monitoring his policy decisions and their potential impact on the industry.

Regarding prospective assessments of the U.S. food supply, he stated, “Nothing will be off limits,” during his introductory comments to the department on February 18.

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