1. 1-800-346-9140 MARKETING ORGANIC GRAINS ATTRA National
Sustainable Agriculture Information Service www.attra.ncat.org
MARKETING, BUSINESS, AND RISK MANAGEMENTAbstract: Organic grain and
oilseed markets are growing, and organic grains can be successfully
marketedat premium prices. This publication focuses on food grains,
oilseeds, and pulses. A brief overview of feedgrain markets and
marketing is included. Organic grain marketing differs from
conventional grain marketingin several key ways. Producers
generally benet from contracting a large portion of their acreage
beforeplanting the crop. Relationships with buyers should be
cultivated early on and be maintained by meetingexpectations
consistently. Premium prices are generally for delivered products,
and, depending on the marketand the specic buyer, they may need to
be cleaned and even bagged. Generally, meeting quality standardsis
essential. To achieve the best prices, growers need to understand
and build relationships with buyers, ndmarkets for most of the
crops in the rotation, meet quality standards, be able to store the
crop if necessary,and be able to contract most of their crop to
reliable buyers.By Holly Born Organic FoodNCAT Agriculture
Specialist Grain, Oilseeds,January 20052005 NCAT and Pulses Market
Situation Organic markets can be volatile, with periods of high
demand and short supply for certain crops and periods of high sup-
ply and sluggish demand for others. However, some grain markets are
quite stable. The demand for or- Contents ganic grains varies
widely, Organic Food Grain, depending on the type of Oilseeds, and
Pulses Market Situation ........................ 1 grain. Prices
for organic Food Grains................................ 2 grains
and oilseeds were Oilseeds ...................................... 4
about double the conven- tional prices from 1995 Organic Feed Grain
Market Situation ........................ 4 to 2003, and
occasionally Marketing Organic Grains, three times as high as con-
Oilseeds, and Pulses.................. 5 ventional. A 2004 study
Finding Buyers ........................... 6 of organic grain and
food- Preserving Organic Integrity .... 8 grade soybean prices from
References ............................... 10 1995 to 2003 (1)
found that 2003 average organic pric- Further Resources
.................... 11 es were greater than 2002 photo courtesy
USDA NRCS prices for major grains andATTRA is the national
sustainable agriculture information service operated by the
National Center for AppropriateTechnology, through a grant from the
Rural Business-Cooperative Service, U.S. Department of
Agriculture.These organizations do not recommend or endorse
products, companies, or individuals. NCAT has ofces inFayetteville,
Arkansas (P.O. Box 3657, Fayetteville, AR 72702), Butte, Montana,
and Davis, California.
2. oilseeds. Corn, soybeans, andspring wheat had highs in
1996-98 Organic Wheat Prices 2000 - July 2004 source: Organic
Business News Price Fax Serviceand again in 2003. $6Lynn Clarkson
of Clarkson Grain $6Company (2) in Illinois says thatprices in the
organic marketplace Ave. Farmgate per bu.can be difcult to
determine be- $5cause of nondisclosure practices.He suggests that
farmers make $5four or ve phone calls to get afeel for appropriate
prices before $4selling their grain. Pricing inthe organic grain
market is veryspecic to the grain crop variety. $4Choosing
varieties with distincttraits, including top quality, is $3one way
to create market advan- 00 01 02 03 04tage.(3) 20 20 20 20 20
Wheat, Hard Red Winter Wheat, Soft RedPremiums for some crops
arefalling, as more farmers get into than prices for conventional
wheat, and premi-organic production, but farmers who can ride ums
for organic wheat have remained steady forout the transitional
years still have opportuni- several years, at about 50% more than
conven-ties to increase their incomes. Increased demand tional.
Good export markets exist for many ofby food and feed manufacturers
has helped to the wheats, along with domestic markets, if
themaintain organic prices for many crops, even as quality and
variety meet market criteria. Theorganic acreage increases.
Clarkson says that market for organic hard-white wheat is
nowforeign competition is creeping into the organic well developed
and stable. While the marketgrain market. Several grain legumes are
already has grown, it is still a much smaller market thancoming
into the U.S. at lower than domestic the market for the hard red
wheats. Demandprices. Some buyers still prefer to buy domestic for
organic hard-white wheat should parallelgrain, however, and price
premiums may hold up conventional demand.(5)for some buyers, as
long as the price differencebetween domestic and imported grain
does notgrow too large.Food GrainsRising consumer demand for
organic pasta, All charts are based on data compiled from
thecereal, and bread products signals a need for Organic Business
News Price Fax Service (Januarymore organic ours and oils. Although
smaller 5, 2000-June 28, 2004). The Organic Business
Newsmanufacturers historically dominated the organic offers current
prices for organic crops (fresh fruits,foods industry, several
leading grain-based food vegetables, herbs, dairy, grains, beans,
and oilseeds)corporations have entered the organic market re- on a
weekly basis through its Organic Commoditycently. ConAgra Foods,
for example, has seen an- Price Bulletin. Annual subscriptions (50
issues) arenual sales of its organic bread our increase 10 to $205
by fax, $110 by U.S. mail. Visit the Web site for15%. While this
category has not grown as fast as information on subscription
discounts. Contact:other categories, slow and steady growth (about
Organic Business News28% annually) is expected to continue.(4) P.O.
Box 161132 Altamonte Springs, FL 32716Wheat 407-628-1377
407-628-9935 FAXAccording to Nancy Matheson, NCAT specialist
[email protected] producer and handler of organic grains in
www.hotlineprinting.com/obn/ofax.htmlMontana, organic wheat prices
are less volatilePAGE 2 //MARKETING ORGANIC GRAINS
3. Organic Corn Prices 2000 - July 2004 Corn source: Organic
Business News Price Fax Service Organic food-grade corn and $11
corn products such as corn $10 syrup are seeing an increase in $9
demand from food processors. Ave. Farmgate per bu. Prices range
from $4.50 to $8.00 $8 a bushel.(6) $7 $6 Oats $5 Prices for
organic oats are about double those for conventional $4 oats.(4)
Oat prices began to rise $3 in 2002 and 2003 and appear $2 to have
leveled off in a higher price range than before. Food 00 01 02 03
04 20 20 20 20 20 Corn, Blue Corn, Yellow grade oats have a small
but sig- nicant niche, and with larger companies such as ConAgra
Organic Oat Prices 2000 - July 2004 getting into the organic oats
market, new opportunities for source: Organic Business News Price
Fax Service $5.00 oats producers may exist. $4.50 $4.00 OtherAve.
Farmgate per bu. Organic rice has seen a very $3.50 steady, slow
increase in de- $3.00 mand. Markets for other food $2.50 grains
tend to be limited. While crop diversity is an important $2.00 part
of organic farming sys- $1.50 tems, it can be difcult to nd markets
for the grains that are $1.00 less in demand. Establishing a
relatively stable rotation al- 00 01 02 03 04 20 20 20 20 20 lows
farmers to plan marketing far ahead of time, rather than Organic
Soybeans (Vinton) Prices 2000 - July 2004 facing the question of
what to source: Organic Business News Price Fax Service plant every
year. Crops such as $23 buckwheat, rye, peas, and oats $21 are
important in crop rotations $19 and as cover crops, but they may be
difcult to sell in some Ave. Farmgate per bu. areas, even without
an organic $17 $15 premium. Some soybean buy- $13 ers, recognizing
this problem, are beginning to contract for $11 some of the other
crops in $9 the rotation. Feed markets are $7 another option for
marketing $5 these types of grains. 00 01 02 03 04 20 20 20 20 20
//MARKETING ORGANIC GRAINS PAGE 3
4. Oilseeds Organic Flax Prices 2000 - July 2004 source:
Organic Business News Price Fax ServiceSoybean $0.70Due to high
demand based onthe perceived health benets $0.60of soy, both
organic and non-organic soy foods have seen $0.50an average annual
increase in Price/lb.sales of 14.3% over the past $0.4010 years.(7)
Once only usedfor tofu, soy is now found in $0.30hundreds of food
products,and demand for organic soy $0.20is strong in both
domesticand export markets. Organic $0.10soy prices tend to be
quite 00 01 02 03 04variable. 20 20 20 20 20Flax, sunower,safower
Organic Pinto Bean Prices, 2000 - July 2004 source: Organic
Business News Price Fax ServiceOther important organic oil-seeds
include ax, sunower, $0.45and safflower, which are $0.40seeing
increased demand asconsumers learn more about $0.35the health
benets of theseoils. Flax prices increased sig- $0.30
Price/lb.nicantly beginning in 2003.Canola is in demand, but it
$0.25can be risky to grow due tothe prevalence of genetically
$0.20modified canola in canola- $0.15producing regions. $0.10Pulses
00 01 02 03 04 20 20 20 20 20Organic dry bean prices tendto be
volatile. There is a been one of the fastest growing organic
catego-strong export market for organic dry beans. ries for the
past several years, and its successfulPinto beans are the most
important type of dry introduction to mass markets means the
categorybean produced in the U.S.(8) There are small but will only
continue to grow. Because agriculturalsteady markets for other
organic pulses, such as feed ingredients in the diets of certied
livestocklentils, green peas, and eld peas. must be organically
produced, continued growth in the retail market should increase
demand forOrganic Feed Grain organic feed grains. It also provides
a marketMarket Situation for lower quality organic grains that fail
to meet the quality standards demanded in other organicIncreasing
interest in organic production of live- market segments.stock has
led to an increase in demand for organicfeedstuffs. Organic meat
and poultry represented You may be able to sell organic feed-grade
grainthe fastest growing organic category in 2003, with directly to
local organic livestock producers ora 78% sales increase in 2004
from 2003.(9) Manu- to organic feed manufacturers, as well as to
bro-facturers expect that category to grow at 30% kers and
merchandisers. If you do sell directlyover the next four years.(9)
Organic dairy has to farmers or small companies, you do risk
notPAGE 4 //MARKETING ORGANIC GRAINS
5. On-Farm Storage Farm storage may not be essential, but it is
Always take and keep representative samples of certainly a critical
factor for successful mar- every eld of grain, and be prepared to
provide keting. Mike Pratt (see Marketing Organic samples to
prospective and committed buyers. Grains, Oilseeds, and Pulses,
below) says his High quality-standards are a common feature single
best tip for organic farmers is to invest of organic grain markets.
Another advantage in storage facilitiesBuy a bin a year. The of
storage is that you can send samples to buy- organic market
consists of many buyers with ers in advance of a sale. This avoids
showing individual supply needs, from small to very up at the
processing plant with a load of grain signicant quantities.
Sometimes, even the that gets rejected because it failed to meet
cer- largest buyers cannot take a whole years supply tain
standards. You can also have stored grain of a particular crop all
at once, but may need a tested at an independent lab for moisture,
pro- certain amount every month. If you can store tein, mold,
toxins, and foreign matter. Maintain it, you can make money by
keeping up with the quality by cleaning storage bins completely,
market and selling when shortages occur and vacuuming grain dust,
removing spilled or the price rises (as long as you can maintain
grain moldy grain, plugging holes and cracks to quality during
storage). Remember that every day your grain is in storage costs
you money, exclude rodents, and keeping weeds around and try to set
a date by which the buyer has to the bins mowed. For more
information on accept the grain or begin paying you for storage.
organic control of insects in stored grain, An alternative can be
to contract with a buyer see the ATTRA publication Stored Grain
Pest who has storage set aside for specialty grains.
Management.getting paid in a timely fashionif at all. Try to of
alternative sources of protein, such as feednd out from other
producers of organic grains peas. Current research is showing an
emergingwhat the reputation of potential small buyers is potential
for grain vetch as a substitute source ofregarding prompt payment.
Be aware that the protein comparable to soybeans.(12) Along
withscreenings also have value as feedstuff and are vetch, grain
lupinewith the highest proteinsought after by organic livestock
producers as a content of all the pulse crops (12)is also
beinglow-cost ingredient.(10) You may want to contact researched as
a protein source for feed.one of your state organic groups to
locate organiclivestock producers in your area who need grain,
Marketing Organic Grains,if there are no organic feed-milling
companies ororganic grain merchandisers in your area. Many
Oilseeds, and Pulsescertication agencies publish lists of their
certi- Marketing organically produced grains is differ-ed producers
and identify producer enterprises. ent from conventional grain
marketing. WhileATTRA maintains a list of organic feed suppliers,
the conventional grower can deposit a wholeavailable on request or
by visiting www.attra. harvest at the elevator, organic production
isncat.org. usually contracted with a specic buyer ahead of
planting. The marketing skills necessary forTypically, prices for
organic feed grains are organic producers are often different from
thoseabout 50 to 100% above conventional prices.(11) for
conventional producers.(10) ConventionalRecently, increased feed
demands across the grain producers can increase their returns by
tim-country and unfavorable growing conditions ing sales to take
advantage of market uctuations.have resulted in some shortages and
high prices Organic producers tend to get better returns byfor
organic grain and soybeans. In summer 2004, taking advantage of
knowledge, experience,organic feed-grade soybean prices ranged from
and relationships. Experienced producers know$19 to $21 per bushel
(up from $18 per bushel in where markets are, know how to
negotiate, andApril), and organic soy meal prices ranged from have
established themselves as reliable suppliers$700 to $850 per
ton.(9) Prices range from $3.25 to through long-term relationships
with buyers.$4.00 per bushel for feed-grade organic corn.(6) Mike
Pratt, former purchasing manager at the organic grain trading
company American HealthThe high cost of organic soybeans and meal
and Nutrition, says that the ability to meet qual-provides
increased opportunities for producers //MARKETING ORGANIC GRAINS
PAGE 5
6. ity standards and to store their organic crops are grain
orders, and they will pool products fromthe main factors for
prospective organic farmers several producers. Organic certifying
agenciesto consider.(13) are not necessarily a good source of
information on buyers. While some agencies, particularlyIn addition
to developing relationships with state department of agriculture
certiers, freelybuyers, farmers also need to develop good rela-
give out lists of buyers, many private certiers dotionships with
their bankers. The organic market not. Some certiers will also
provide potentialis not as liquid as the conventional market. Or-
buyers with lists of the farmers they certify whoganics often do
not have a spot market in which produce the crops that the buyer is
looking for.farmers and bankers can immediately turn grain A
partial list of buyers and other sources of buyerto cash (14), and
bankers need to understand information is included in the Further
Resourcesthat they may not get proceeds from crops for section of
this publication.up to a year or more in some cases. However,if
there is an organic handling or processing Sales to Other
Producersfacility nearby, there may be a spot market. Forexample,
Matheson says, General Mills elevators and Smaller Organic
Companiesand several smaller independent organic grain Other
farmers and ranchers and small organicmerchandisers in Montana
offer producers the companies may offer marketing opportunities
toability to sell their harvests directly at the eleva- organic
grain producers. However, it is impor-tor. While buyers such as
General Mills can take tant to make sure that you will be paid
after yoularge quantities, Matheson advises diversifying make the
sale. Some buyers of organic grain arebuyers if possible. so small
that they cant or dont always pay the farmers theyre buying from.
Fraud is unusual more often, smaller companies may have too
littleFinding Buyers cash-ow to pay their bills. If they get
behind,Producers interested in going organic should they simply
dont have the cash to pay the farm-contact several buyers to get a
feel for the mar- ers. Also, many do not know they are requiredket
and nd out more about what crops are in to have a commodity dealers
license with thedemand, quality standards, and pricing. Experts
accompanying protection for payment. If yourecommend taking the
time to understand the are a farmer selling organic grainto a
companybuyers viewpoint, learning about the products or an
individualbe sure that the buyer has athat the grains go into,
quality and other desired commodity dealers license in your state.
Manyattributes, and so on. It can pay to talk to milling,
individuals will not have a commodity dealersbaking, and other
manufacturing associations, as license, required only of those
whose purchaseswell as producer associations, and build a mar-
directly from farmers exceed a certain dollarketing network with
food industry contacts.(2) amount. For example, in Montana, anyone
whoMake sure buyers know that you are focused on buys $30,000 or
more of grain per year from farm-food quality and on meeting their
needs. For ers must have a commodity dealers license. Thefood-grade
products, the buyer will want a sam- licensees must post a bond or
buy an insuranceple and the assurance that the entire shipment
policy that will cover their unpaid bills to theirwill be of equal
quality. There is more exibility sellers if the licensees cant.on
quality in the feed markets. Producers shouldbe familiar with
various sampling techniques andknow how they affect the samples
sent to the Considerations for Contract Productionbuyers. Many
organic certication organizations Contracting with a trader or
processor is oftenoffer information on sampling. If you are inter-
the only way, and sometimes the best way, toested in targeting
export markets, you will need sell organic products or alternative
crops thatto check with buyers to nd out whether there are lack
established markets. Contract productionInternational Federation of
Organic Agriculture offers producers a way to manage risk.
WhileMovements (IFOAM), European Union, or other producers on
contract will not be able to benetspecic certication requirements.
from favorable price changes, they are protected from unfavorable
price changes. In many casesThe Internet can be a great place to nd
buyers, traders will also give growers advice on how toand it is
important to get on buyers e-mail lists. produce and harvest a
top-quality organic crop.Buyers send out frequent requests to bid
on lling Clarkson advises growers to contract a signi-PAGE 6
//MARKETING ORGANIC GRAINS
7. cant portion of their production before planting. price and
costs. Contracts may specify the pro-Those contracts should be for
acres of ground ducer as responsible for both, either one, or
nei-in production, not bushels of crop produced, to ther. For
example, some prices are quoted FOBprevent shortfall on delivery at
harvest time in a destination point, and the producer must paya bad
year. shipping and cleaning. Other buyers may quote a farm-gate
price based on quantity after cleaning,Buyers look for farmers who
are in the right loca- but the buyer pays for cleaning and
shipping.tion with the right equipment and infrastructure.
Experienced growers stress that cleaning andBeyond these basics,
buyers also prefer to deal shipping are signicant costs, and you
must readwith farmers who have a good attitude and are the ne print
to avoid unpleasant surprises.sensitive to client needs. Farmers
benet bybuilding relationships with buyers as they com- Premium
prices for organic grain are sometimespete for contracts. One
farmer compares nding on a cleaned and delivered basis. Many
organicbuyers to going on job interviews.(15) feed buyers and
certied organic elevators will buy uncleaned grain. Premium markets
mayFarmers are having more difficulty getting demand a shipment to
be 99.9% clean. In ordercontracts to grow some of the specialty
grains, to separate out that last small percentage of weedsuch as
blue corn. Clarkson says, There is a seeds, stones, and other
impurities, up to 10% ofdenite limit to the ability of niche
markets to the grain can be wasted (dockage). Producersabsorb all
the available supply. Open-market should nd out how dockage is
handled andfarm production tends to rapidly destroy the whether any
grain will be credited back to theprice advantages. Contract
production tends to grower. Keep in mind that organic screenings
areregulate supply to what the market can absorb in high demand by
livestock and feed producers.and thus retains the premiums for
longer than If you have your grain custom cleaned, and
youopen-market production. want the screenings, youll need to
request themCommunication with buyers is critical for pro- ahead of
time and reach an agreement on theirducers in determining what to
plant, how to t per-unit value.it into their rotation plan, and how
to grow and Both producer and buyer need to carefully con-harvest a
crop that meets each buyers quality sider all terms of the contract
before signing. Itcriteria. Understanding the standards and terms
is important to understand what happens if thespecied is vital.
Grain cleaning and shipping commodity is below contract quality
specica-charges are important factors when evaluating tions and
what the buyers rejection policy is. The producer, in particular,
should learn aboutGrain silos on the Kansas plains. Photo courtesy
Tim the legal aspects of contract production and knowand Annette
Gulick, www.sxc.hu. what his or her options for legal recourse are
in case a buyer violates the agreement. Information on evaluating
contracts is available at http://web.
aces.uiuc.edu/value/contracts/contracts.htm.
Collaborative/Cooperative Marketing The additional labor and
management required to meet quality and delivery specications, as
well as investments in cleaning and storage equip- ment, represent
possible marketing costs that could eat into premiums.
Transportation costs may be substantial if certied cleaning plants
or points of delivery are located far from the farm. The need to
invest in storage facilities and the costs of transportation may
make cooperative marketing more attractive. Marketing agencies-
in-common (MACs) are organized by groups of cooperatives to
coordinate marketing and other value-added services for the
cooperatives. Each //MARKETING ORGANIC GRAINS PAGE 7
8. individual cooperative retains control and own-ership of its
assets and is usually responsible forits own management. The MAC
often providesmarketing services that individual coopera-tives
cannot afford by themselves. The OrganicFarmers Agency for
Relationship Marketing(OFARM) is a marketing agency-in-common
fororganic grain grower cooperatives in 18 statesand Ontario.
OFARMs target prices for severaltypes of grain, along with
conventional prices,can be seen at their Web site or at
www.newfarm.org/opx/grains.htm (prices are FOB at the farm,
notincluding storage and handling). Contact:John Bobbe, Executive
Director Corn harvest in Iowa. Photo by Tim McCabe, USDA
NRCS.920-825-1369866-846-5522 (toll-free)[email protected]
contaminants, and shake out residues from thewww.ofarm.org sieves.
Before harvesting your organic crop, run three to ve bushels of
organic grains through thePreserving Organic Integrity combine to
purge leftover conventional grains (this grain cannot be sold as
organic).(16)Harvest Considerations for the Split If you own a
combine, you can take your timeOperation and pay attention to
details. This will ensureThe producer or handler of a certied
operation a high quality harvest with minimal damagemanaging
organic and non-organic components to the grain. Custom harvesters
often cannotof one farm must document the measures taken to take
the time necessary to assure such thoroughmaintain organic
integrity from seeding through cleanout measures. In addition, they
are oftenharvest, transportation, and storage. Buffer not familiar
with specialty crops such as spelt,zones, eld isolation, adjusted
planting dates, food-grade soybeans, buckwheat, or ax. If youand
varietal selection are common means of re- do hire custom
operators, it may be necessary toducing contamination. To avoid
contamination pay them to be meticulous enough to clean theirand
preserve organic integrity, you may want to harvesters completely
to avoid contamination,plant and harvest organic crops rst, if
maturity and to set the machine properly.dates allow. Any hauling
vehicle that includes augers shouldWhen equipment used for
planting, harvesting, be cleaned thoroughly. Grain receiving
pits,transporting, and storing conventional crops augers or
conveyors, elevator legs, dryers, andis used for organic crops,
there is a high risk of bins are all possible sites of mixing.
Clean in andcommingling or physical contact between organic around
these parts of the system to minimize mix-and conventional crops,
if any of the conventional ing. Run some organic grain at maximum
capac-crop remains in the equipment. An Iowa State ity through the
system to clean out conventionalUniversity study showed that there
can be more grain. Cleanout logs should be kept up to datethan 60
pounds of grain, vegetative matter, and for all combines, trucks,
and farm and cleaningdirt left in a combine, even after the grain
tank equipment that are used for both conventionalappeared to be
emptied.(16) and organic grain. Be sure to get a clean-truckWhile
some equipment can be adequately cleaned afdavit from custom
haulers.by hand, other equipment such as gravity
boxes,transportation units, and storage units may need Post-Harvest
Handling and Processingto be cleaned with pressurized water or
blown If you process or perform signicant value-addedout with
compressed air. Combines should have operations, you may need to be
certied as anall trap doors opened and be run empty for 15 organic
handler, in addition to your organic pro-minutes or so. Sweep and
use an air compressor duction certication. According to the NOP
Finalor vacuum cleaner to remove leftover grain and Rule (205.2)
handle is dened as follows.PAGE 8 //MARKETING ORGANIC GRAINS
9. To sell, process, or package agricultural crops, organic.
Handlers of organic grain and grain except such term shall not
include nal retailers products must demonstrate that they have
proce- of agricultural products that do not process agri- dures in
place to ensure the identity and segrega- cultural products. tion
of the organic products at all times.A handling operation is dened
as For more information on documentation needs Any operation or
portion of an operation (except and the certication process, see
the ATTRA nal retailers of agricultural products that do
publications Organic Field Crops Documentation not process
agricultural products) that receives Forms, NCATs Organic Crops
Workbook, and the or otherwise acquires agricultural products and
National Organic Program Compliance Checklist for processes,
packages, or stores such products. Producers.Check with your
certier to nd out whether In addition to offering a reliable
supply, thereyour post-harvest activities qualify you as a are
options to add value to your crop by clean-handler. If you do
qualify as a handler, you must ing, packaging, labeling, and/or
palletizing yourget an organic handler certicate. Handlers of
product and arranging delivery logistics for yourorganic grain must
ensure organic identity and buyer. Buyers vary in the degree of
cleaning andprevent contamination with prohibited materi-
conditioning they require. While many buyersals. Bin tags, labels,
scale tickets, and lot control do not want to have to clean the
crop, othersdocuments must clearly identify the product as prefer
to do their own cleaning, using their own GMO Crop Contamination
With the advent of genetically modied or- engineered gene. The two
most common meth- ganisms (GMOs), an additional risk to organic ods
used to detect GMOs are the enzyme-linked farmers has arisen.
Organic standards prohibit immunosorbent assay (ELISA) and
polymerase the use of GMOs in production and handling. chain
reaction (PCR). ELISA, according to Dean Along with this
prohibition comes the risk of Layton of Envirologix, is recommended
for raw contamination of the organic crop with GMO corn and soy,
while PCR is better for more-pro- pollen from neighboring elds or
commingling cessed foods.(17) Very generally, strip testing is
during harvest, transportation, or storage. In often used as an
initial screen with PCR testing the case of corn, drifting pollen
from a eld of to verify presence of GMOs, since strip testing GM
corn can contaminate organic corn growing is cheap and fast while
PCR is expensive. nearby, making the grain test positive for GMO.
If a test result is positive, your whole load While there are moves
to standardize the may be rejected. Keep samples of everything,
testing methods, currently the best advice to including the seed
that went in the ground, growers is to choose testing methods and
labs samples of what has been harvested, and sam- with care. Buyers
must have condence in your ples of whats been delivered, until you
have all testing program, and most will let you know the
documentation you need to know that the what tests are acceptable.
Since 100% organic buyer is satised, and you wont be held liable is
impossible to guarantee among crop species for GMO contamination
found later. that include GM varieties (because of wide- spread GMO
contamination and testing limits), There are many ways to test your
crops. The buyer allowances for 0.1% to 5% contamination cheapest
and simplest are test strips from are typical. However, buyer
requirements for companies like Envirologix and Strategic Di- 99%
purity will require more stringent testing agnostics. While the
strips are inexpensive than 95% purity. at $3 to $5 each, they can
only test for a single gene. They are useful if you know what your
GMO testing equipment is offered by Genetic neighbor is growing and
youre worried about ID, Inc., Central Testing, and Envirologix,
contamination from that source. More compre- among others. Several
testing laboratories hensive testing runs about $300 per test, but
it are listed in the Resources section of this can detect any type
of commercially available publication. //MARKETING ORGANIC GRAINS
PAGE 9
10. equipment. Clarkson says that few if any farm-
Referencesers could support the machinery array we think 1) Streff,
Nicholas, and Thomas L. Dobbs. 2004.is needed to present excellent
material to nal Organic and Conventional Grainprocessors of human
foods. Rotary screens or and Soybean Prices in the Northernauger
screens may do more seed coat damage Great Plains and Upper
Midwest: 1995than we can accept. If pre-cleaning is required
through 2003. Econ. Pamphlet 2004-1.to meet quality standards, weed
seeds, green South Dakota State University.material, and other
trash must be removed beforestorage. 2) Lynn E. Clarkson.
President, Clarkson Grain Company. 2001. Personal communica-Adding
value also adds costs. Depending on tion. October 18.the type of
activity, the producer may need tomake considerable investments in
equipment Clarkson Grain Company, Inc.and time. If interested in
doing his or her own 320 East South Streetcleaning and bagging to
sell directly to the end P.O. Box 80user, for example, the farmer
may need to pur- Cerro Gordo, IL 61818-0080chase equipment such as
small cleaners, fanning 800-252-1638mills, and a gravity table.
Pratt highly recom- 217-763-2861mends running the grain over a
gravity table [email protected] assist in removal of small
stones, glass, and www.clarksongrain.comsimilar trash. He
emphasizes that the trader (orthe grower, if direct marketing) is
liable for any 3) Maulsby, Darcy. 2004. Talking Shop: Wis-claims
related to foreign matter in the cropfor consin. Upper Midwest
Organic Con-example, milling machinery damaged by stones ference,
Feb. 27-Mar. 1 Evaluate Yourin the grain. Product liability
insurance will be Organic Grain Marketing Opportuni-a must. On-farm
or cooperative grain process- ties. NewFarm.org.ing, either for
human or animal consumption, is
www.newfarm.org/depts/talking_another marketing option. For more
information, shop/0403/marketing_ops.shtmlrequest the ATTRA
publication Grain Processing: 4) Gelski, Jeff. 2003. The organic
reward. Mill-Adding Value to Farm Products. ing & Baking News.
November 18. Baking Business on-line edition.
www.bakingbusiness.com/feature_stories.Long grain rice. Photo by
Keith Weller, USDA ARS asp?ArticleID=68447 5) Matheson, Nancy.
Personal communication with Andre Giles, owner and manager of
Montana Flour and Grains, Fort Ben- ton, MT. Oct. 20, 2004. 6)
Frerichs, Rita. 2003. Organic Food-Grade Corn. College of
Agricultural, Consum- er and Environmental Sciences, Univer- sity
of Illinois at Urbana-Champaign.
www.aces.uiuc.edu/value/factsheets/ corn/fact-organic-corn.htm 7)
Hansen, Ray. 2004. Organic Soybean In- dustry Prole. Agricultural
Marketing Resource Center, Iowa State University.
www.agmrc.org/soy/proles/organicsoypro- le.pdf 8) USDA Economic
Research Service. No date. Brieng Room: Dry Bean Background.
www.ers.usda.gov/Brieng/DryBeans/PAGE 10 //MARKETING ORGANIC
GRAINS
11. 9) Organic Business News. 2004. Soybean corn and soybean
technology, specialty corn and Feed Costs Rising as Egg Prices Go
Up. soybean markets, and more. They have publica- July. p. 7. tions
on organic food-grade soybeans and organic corn that include
recommended management10) Swenson, Andrew, and Brad Brummond.
practices and sample partial budget analyses. 2000. Projected 2000
Organic Crop Bud- They also maintain lists of buyers for the
different gets for South Central North Dakota. crops. This
information is available at their Web March. North Dakota
Cooperative site: www.aces.uiuc.edu/value/ Extension.
www.ext.nodak.edu/extpubs/ecguides.htm For those without Internet
access, contact:11) Anon. 2003. Organic Feed for Poultry Burton E.
Swanson and Livestock: Availability and Prices. Project Director
Agricultural Marketing Service, USDA. Department of Agricultural
and Consumer www.ams.usda.gov/nop/ProdHandlers/ Economics
FeedStudyJune2003.pdf 1301 West Gregory Drive Urbana, IL 6180112)
Krall, Jim. 2004. Traders Dispatch. Valier, 217-244-6978 MT.
October. p. C22. 217-333-5835 FAX13) Pratt, Mike. Former Purchasing
Manager, [email protected] American Health and Nutrition. 1998.
North Dakota Cooperative Extension has some Personal communication.
April 15. very good budgets and planning information American
Health & Nutrition for a variety of organic eld crops online
at: 3990 Varsity Dr. www.ext.nodak.edu/extpubs/ecguides.htm Ann
Arbor, MI 48108 For those without Internet access, contact:
734-677-5570 734-677-5572 or 734-677-5574 FAX Distribution Center,
NDSU Extension Service [email protected] Morrill Hall, P.O.
Box 5655 www.organictrading.com North Dakota State University
Fargo, ND 58105-565514) Traub, Jim. Senior Merchandiser, Clarkson
701-231-7882 Grain. 2001. Personal communication. 701-231-7044 FAX
October 18. [email protected]) Burchett, Andrew. 2000.
Contract quest. NC+ Organics is a supplier of organic row-crop Farm
Journal. October. p. 2628. seed and offers some helpful information
on16) Riddle, Jim. 2004. The Inspectors Note- growing and marketing
organic grains in their book: Protecting the integrity of organic
newsletter and their online forum at http://ncor- grains during
harvest. August 17. ganics.com/index.html. If you dont have
Internet NewFarm.org. access, contact:
www.newfarm.org/columns/inspec- NC+ Organics
tor/2004/0804/081704.shtml 207 18th Street N.17) Anon. 2001. Choose
GMO testing methods Grand Junction, IA 50107 and labs carefully.
The Organic Source. 800-370-7979 March. p. 4 Organic Grain
DealersFurther Resources Following is a list of some organic grain
buyers. This list is by no means complete, but shouldInformation
serve as a starting point in locating buyers.The Illinois Specialty
Farm Products project Ag Finder has merged into West Plains
Grainprovides information on contract evaluation for (listed
below).specialty grains, strategic planning, specialty //MARKETING
ORGANIC GRAINS PAGE 11
12. American Health & Nutrition Montana Flour and
Grains3990 Varsity Dr. 2500 Choteau St.Ann Arbor, MI 48108 Fort
Benton, MT 59442734-677-5570 406-622-5436734-677-5572 or
734-677-5574 FAX 406-622-5439
[email protected] Pacic Soybean and
Grain 1 Sutter St., Suite 300Arrowhead Mills San Francisco, CA
94104110 South Lawton Ave. 888-276-9232P.O. Box 2079 415-433-9494
FAXHereford, TX 79045 [email protected] FAX
[email protected] 1691 Highway 65
Hampton, IA 50441Ciranda, Inc. 800-809-3493221 Vine St. Scoular
GrainHudson, WI 54016 2027 Dodge St.715-386-1737 Omaha, NE
68102715-386-3227 FAX [email protected] 402-342-4493
FAXwww.ciranda.com [email protected] Grain Company, Inc.
www.scoular.com320 East South StreetP.O. Box 80 SK Food
InternationalCerro Gordo, IL 61818-0080 4749 Amber Valley Parkway,
Suite 1800-252-1638 Fargo, ND 58104217-763-2861
[email protected] 701-356-4102 FAXwww.clarksongrain.com
[email protected] www.skfood.comIntegrity Mills, Inc.616 6th Ave.
W. Stonebridge Ltd.Cresco, IA 52136 4901 University Ave. Suite
F319-547-5827 Cedar Falls, IA 50613319-547-5920 FAX 319-277-4277
319-277-4274 FAXKreamer Feed, Inc. [email protected]. Box
38 www.stonebridgeltd.orgKreamer, PA 17833800-767-4537 Sunrich,
[email protected] P.O. Box 128www.kreamerfeed.com Hope, MN 56046
800-342-6976McGeary Organics, Inc. 507-451-2910 FAXP.O. Box 299
[email protected], PA 17608
www.sunrich.com800-624-3279717-394-6931 FAX West Plains Grain
/Specialty Grains [email protected] 2809 S. 160th St.,
Suite 309www.mcgearyorganics.com Omaha, NE 68130 Omaha ofce:
877-558-0797 Kansas City ofce: 888-625-2595 402-829-5170 FAXPAGE 12
//MARKETING ORGANIC GRAINS
13. Buyers in the Upper Midwest are listed on the CII
Laboratory ServicesMinnesota Department of Agricultures Web site.
10835 Ambassador
Drivewww.mda.state.mn.us/esap/organic/orgbuyers.pdf Kansas City, MO
64153 816-891-7337Buyers for organic corn and soybeans are listed
816-891-7450 FAXat the Illinois Specialty Farm Products Web site.
[email protected]/value www.ciilab.com (also
available in Spanish)More companies and cooperatives dealing in or-
Dupont Qualiconganic grains for food and feed can be found in the
Bedford BuildingOrganic Trade Associations Online Directory. 3531
Silverside Roadwww.ota.com Wilmington, DE 19810For more information
on nding buyers, includ- 800-863-6842ing print directories for
those without Internet 302-695-5301 FAXaccess, request ATTRAs
publication Organic [email protected] Resources.
www.qualicon.com Genetic ID, Inc.GMO Test Kit Manufacturers 1760
Observatory DriveEnvirologix Faireld, IA 5255655 Industrial Way
515-472-9979Portland, ME 04103
www.genetic-id.com207-797-0300www.envirologix.com Mid-West Seed
Services, Inc. 236 32nd AvenueNeogen Corporation Brookings, SD
57006620 Lesher Place 605-692-7611Lansing, MI 48912 605-692-7617
FAX517-372-9200 [email protected] FAX
[email protected] GeneScan USA
2315 N. Causeway Blvd., Suite 200Strategic Diagnostics, Inc.
Metairie, LA 70001111 Pencader Drive 504-297-4330Newark, DE
19702-3322 866-535-2730 toll-free302-456-6789 504-297-4335
FAXwww.sdix.com http://www.gmotesting.comGMO Testing
LaboratoriesBiogenetic Services, Inc.801 32nd Ave.Brookings, SD
57006605-697-8500 / 800-423-4163605-697-8507
FAXinfo@biogeneticservices.comwww.biogeneticservices.comCalifornia
Seed & Plant Lab, Inc.7877 Pleasant Grove RdElverta, CA
95626916-655-1581916-655-1582 [email protected]
//MARKETING ORGANIC GRAINS PAGE 13
14. AcknowledgementsThanks to Nancy Matheson, NCAT
TechnicalSpecialist and organic seed and grain producerand handler,
and to Lynn Clarkson, Jim Traub,and Curtis Bennett of Clarkson
Grain, for theirreview of this publication and their many
helpfulcomments and suggestions.Marketing Organic GrainsMarketing,
Business, and Risk ManagementBy Holly BornNCAT Agriculture
SpecialistJanuary 20052005 NCATEdited by Paul WilliamsFormatted by
Robyn MetzgerPAGE 14 //MARKETING ORGANIC GRAINS
15. Notes //MARKETING ORGANIC GRAINS PAGE 15
16. The electronic versions of Marketing Organic Grains are
located at: HTML
http://www.attra.ncat.org/attra-pub/marketingorganicgrains.html PDF
http://www.attra.ncat.org/attra-pub/PDF/marketingorganicgrains.pdf
CT 154 Slot# 184 Version 021605PAGE 16 //MARKETING ORGANIC
GRAINS