After Years in the Red, Farms Return to Non-GMO Crops to Regain Profits

[GreatGazoo]

When Justin Dammann enters his southwestern Iowa cornfield this month, the 35-year-old farmer will sow something these 2,400 acres have not seen in more than a decade — plants grown without genetically modified seeds.

The corn, which will head to a processor 20 miles down the road this fall, will likely make its way into tortilla shells, corn chips and other consumable products made by companies taking advantage of growing consumer demand for food without biotech ingredients.

For Dammann and other Midwest farmers, the burgeoning interest in non-GMO foods has increased how much they get paid to grow crops in fields once populated exclusively with genetically modified corns and soybeans. The revenue hike is a welcome benefit at a time when lower commodity prices are pushing farm income down to what's expected to be the lowest level in six years.

"We never really thought we would go back to (non-GMO). But the consumer, in my opinion, has sent a clear message that a certain percentage of our customers are willing to pay more for the non-GMO lines," Dammann said. "This non-GMO thing has seemed to take hold and gain a lot of traction."

http://www.desmoinesregister.com/story/money/agriculture/2015/04/18/non-gmo-farming/25951693/

Lots more detail at the link. Basically farmers are finding lower costs and higher revenues in non-GMO crops. Seed and inputs are cheaper and the crop sells for a premium over GMO. There is a glut of corn and soy which has kept prices so low that the Federal government will kick in $8 billion for 2014 to subsidize those who grew GMO crops and lost money doing so. Meanwhile farmers who switch back to non-GMO corn and soy are returning their farms to profitability and getting off the government dole.

The value of GMO corn has fallen 46% since 2012. Other data shows consumer demand for non-GMO foods is nearly doubling year over year with farmers and supply chain managers scrambling to keep up with rising demand:

Sales of verified non-GMO foods in the US:

2011 — $1.2 billion

2012 — $2.7 billion

2013 — $5 billion

2014 — $8.5 billion

Labeling of GMO foods begins in less than a year, July 1, 2016, and corporations like General Mills are pushing their suppliers to be ready to meet much-increased demand as a result.