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Organic price premiums decline as conventional food prices rise faster

Producers of organic products typically receive higher prices compared to conventional commodities. This price premium helps organic farmers recover the additional costs associated with organic production. However, since 2015, price premiums for key organic products—such as apples, strawberries, and spinach—have been declining.

In 2022, food price inflation reached its highest level since 1979, leading to increased prices for both organic and conventional produce. As conventional prices rose at a faster rate than organic prices, the gap between wholesale prices of organic and conventional produce narrowed.


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The Organic Trade Association noted that during the COVID-19 pandemic, organic producers were reluctant to further raise their prices due to the already high price point consumers faced.

This trend is highlighted in a chart from the USDA Economic Research Service's Organic Situation Report, 2025 Edition, published in February 2025. Additional insights can be found in the Amber Waves article, "Rising Consumer Demand Reshapes Landscape for U.S. Organic Farmers," published in November 2023.

For more information:
USDA
Tel: +1 (202) 720-2791
Email: press@usda.gov
www.usda.gov

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