The Economic Benefits of Organic Farming on a Dairy - Archives

112 Pages·2012·0.78 MB·English

The Economic Benefits of Organic Farming
on a Dairy Farm in Thurston County, Washington

by
Daniel C. O’Neill

A Thesis
submitted in partial fulfillment
of the requirements for the degree
Master of Environmental Studies
The Evergreen State College
December, 2012
 2012 by Daniel C. O’Neill. All rights reserved.

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This Thesis for the Master of Environmental Studies Degree
by
Daniel C. O’Neill

has been approved for
The Evergreen State College
by

_________________________
Ralph Murphy Ph.D.

___________________
Date

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ABSTRACT
The Economic Benefits of Organic Farming
on a Dairy Farm in Thurston County, Washington

Daniel O’Neill

The new millennium has brought a growing, global interest in the
consumption of organically grown food accompanied by an increasing
demand for growers to shift from traditional crop production to
certified organic crop production. Many factors have contributed to
these growing interests, including changing attitudes about food, new
trends in the marketing and merchandising of food products, an
explosion in media attention paid to more natural diets and lifestyles,
mounting costs for treating illness and disease, and even increasing
incidents of congenital conditions in newborns and young children. But
can growers meet these new demands? How do they go about making
those shifts, and, once they do, will they enjoy economic benefits from
the changes they’ve implemented?

This thesis begins with an historical overview of chemical-free food
production, with specific references to increasing public awareness and
market opportunities. It also provides a basic introduction to
resources, agricultural organizations, and regulatory bodies that
provide a structural framework for the organic growing community. A
discussion of the organic certification process follows, with a step-by-
step ‘road map’ for obtaining certification, specifically in the state of
Washington. It continues with an in-depth, transitional template that
can be followed by growers who wish to shift from traditional crop
production to certified organic farming. It emphasizes the importance
of planning, goal-setting, and self-educating in making the transition a
successful one.

The thesis then presents a detailed case study involving a family dairy
farm, located in Thurston County, Washington, which follows the
transitional template to introduce organic farming methods, and then
shares its results. Based on the case study, the work concludes that
there can be distinct economic benefits to growing organic crops. It also
makes specific recommendations to those who are committed to
reducing and/or eliminating the use of chemicals in their food
production, for both today’s world and as we move into the future.
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TABLE OF CONTENTS

ABSTRACT iv

TABLE OF CONTENTS v

LIST OF TABLES vi

LIST OF FIGURES vii

ACKNOWLEDGMENTS viii

INTRODUCTION 1

PREFACE AND FAMILY HISTORY 4

CHAPTER ONE
The Origins and Growth of Organic Agriculture 12

CHAPTER TWO
Organic Certification in Washington State 30

CHAPTER THREE
How to Transition from Conventional
to Organic Crop Production 37

CHAPTER FOUR
Black River Ranch: A Case Study 56

CHAPTER FIVE
Conclusion 84

REFERENCES 86
APPENDIX A: Recommended Government Publications 92
APPENDIX B: Sample Business Plan 95
APPENDIX C: Black River Ranch /
Organic Transition Placement Maps 102

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LIST OF TABLES

Table 1 Case Study: Anticipated Expenses
Corn & Cover Crop, YEAR 1 71
Table 2 Case Study: Anticipated Expenses
Corn, Cover Crop, Nursery Stock, YEAR 2 72
Table 3 Case Study: Anticipated Expenses
Corn, Cover Crop, Nursery Stock, YEAR 3 73
Table 4 Case Study: Anticipated Expenses
Corn, Cover Crop, Nursery Stock, YEAR 4 74
Table 5 Case Study: Anticipated Revenue & Net Profit,
YEAR 1 75
Table 6 Case Study: Anticipated Revenue & Net Profit,
YEAR 2 76
Table 7 Case Study: Anticipated Revenue & Net Profit,
YEAR 3 77
Table 8 Case Study: Anticipated Revenue & Net Profit,
YEAR 4 78

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LIST OF FIGURES

Figure 1 Black River Ranch /
Organic Transition Placement Map
Year 1 102

Figure 2 Black River Ranch /
Organic Transition Placement Map
Year 2 102

Figure 3 Black River Ranch /
Organic Transition Placement Map
Year 3 103

Figure 4 Black River Ranch /
Organic Transition Placement Map
Year 4 103

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ACKNOWLEDGMENTS

Many people have contributed to the following pages, and I believe no
work is complete without giving proper thanks. To everyone who has
helped me in any way with this thesis, I am personally grateful for your
patience, ideas, suggestions and criticisms.
Several individuals have assisted me on my journey. At The
Evergreen State College, Russ Fox worked with me on soil management,
sustainability and the protection of the environment. I thank John Hurley in
the Finance and Administration Office for his review and assistance with
the fiscal portions of this document. Jaime Kooser, a former professor in
the Master of Environmental Studies (MES) program, spent countless hours
reviewing my work as a beginning MES student, and I have always
appreciated her constructive critique of the written word. This thesis would
not have been possible without the guidance of Ralph Murphy, my MES
faculty and thesis advisor. Ralph not only provided me with solid direction
but he got me to keep going until I finished the work I had embarked upon
years earlier. I truly appreciate his willingness to work with me and not
give up. I would also like to acknowledge Susan Alexander, who helped me
organize and state my thoughts clearly throughout this paper.
Heart-filled thanks to my great-grandparents, Joseph and
Magdalena Wickie, who immigrated to Washington State from Switzerland
more than a century ago and worked tirelessly each day to manage dairy
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animals, recycle dairy by-products, and be good stewards of the land.
Their practices on the farm inspired me to continue those practices, and
adapt additional methods of recycling and soil management to help
ensure sustainability and encourage environmentally friendly practices.
A very special thanks to Carla O’Neill, my wife and business
partner, for constantly making me think, for always challenging me to set
the bar higher, and for her patience in allowing me to take time out of our
lives to pursue a graduate degree and write this document. I also
appreciate the inspiration that our three children have provided with the
questions they’ve asked and ideas they’ve offered as they have grown in
knowledge, wisdom and understanding. Stephanie, Melissa and Joseph,
you are my three best reasons to remain healthy and protect the planet.
This paper has benefited me in countless ways, and it is my
personal hope that others will benefit from the work and enjoy the many
potential benefits of organic farming. Please read, enjoy, learn and live
healthy!
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INTRODUCTION
A family dairy farm, a one hundred-year tradition of sustainable
farming practices, and a keen personal interest in improving the health
of people and the planet have been the major inspiration for this thesis
about growing crops for human and animal consumption using organic
practices. This work was conceived as, and is intended to be, a
digestible, reader-friendly introduction to the history, basic principles,
regulatory guidelines, and environmental benefits associated with
organic farming. It is also designed to serve as a template for
conventional growers who may be considering making the transition to
organic crop production. Its primary purpose is to demonstrate that
organic crops, when grown using a methodical and well-planned
approach, can produce definite economic benefits.
While the resulting profitability is a sound reason for growing
crops using organic methods, it is of course not the only reason.
People and the environment have much to gain if more of our foods
are grown using methods that do not threaten our health and well-
being but instead, promote and enhance it.
It is true: To grow organic crops, there is need for more intense
management and labor, thus raising production costs. However, in this

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