Study: Organic Food Production Helps Lower Poverty in Rural America

Christopher Doering reported in today’s Des Moines Register that, “The production of organic foods helps lower poverty and increase household incomes in rural America, according to a Penn State University study released Wednesday.

“The study by agricultural economist Ted Jaenicke found that organic hot spots — counties with high levels of organic agricultural activity whose neighboring counties also have high organic activity — increased median household incomes by an average of $2,000 and reduced poverty levels by an average of 1.3 percentage points.”

The Register article explained that, “Jaenicke tabulated the results by identifying the quantity of organic farms and economic activity in the area. He then removed other factors influencing the local economy to gauge organic’s impact. He did not receive funding from the industry for his research.

While his study did not assess why organic benefited area economies, he speculated the reasons it does include the need for more labor and use of locally sourced inputs. Organic crops also typically command a significant premium compared to traditional crops, often paying the producer several times as much.”

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