Lower Yields, Bigger Returns? Perdue Data Highlights Organic Farming Tradeoffs Across Grain Crops

Purdue data show stronger net returns for organic corn and soybeans despite lower yields and higher costs.

Heriloom corn_Photo by nd700 via AdobeStock_973948744.jpg

Heriloom corn varieties.

Photo by nd700

WEST LAFAYETTE, IN (RFD-TV) — Organic farming returns for many grains continue to exceed conventional returns, but the advantage comes with lower yields, higher costs, and wider performance gaps among farms.

Purdue University’s Dr. Michael Langemeier says FINBIN data from 2021 through 2025 show mixed results across crop enterprises.

Organic corn yields averaged 24 percent below conventional corn. Organic soybean yields were 23 percent lower, while oats showed a 36 percent yield drag. Winter wheat and alfalfa had smaller yield differences.

Higher organic prices helped offset lower production. Organic gross revenue per unit was about 1.81 times that of conventional corn and 2.13 times that of conventional soybeans.

On average, organic net returns to land exceeded conventional returns by $312 per acre for corn and $327 for soybeans. Conventional alfalfa, oats, and winter wheat were similar to or slightly better than organic returns.

Langemeier says producers should test organic budgets carefully before transitioning acres, especially since organic rotations often include small grains or forages with lower returns.

Farm-Level Takeaway: Organic corn and soybeans can improve returns, but transition planning must account for yield drag, costs, and rotation risk.
Tony St. James, RFD-TV Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

The funding could expand domestic fuel supplies, though lower diesel prices are not guaranteed.
EPA estimates the proposed changes could save $45 billion in regulatory compliance costs.
Even a wet winter may not be enough to restore water supplies across drought-stricken western states.
Some smaller feedlots are already empty as operators struggle with limited cattle availability.
Higher fertilizer and financing costs are putting pressure on Brazilian producers.
Federal payments are keeping farm income elevated despite weaker earnings from agricultural markets.
The department has not released new details on how individual agencies or offices will be affected.
Delaying equipment purchases may offer little relief as repair and financing expenses continue rising.
Tight cattle supplies could leave some winter wheat fields harvested for grain rather than grazed.
The company is working to fill reporting gaps that leave many private hay transactions untracked.
The order aims to expand domestic fuel production, though its impact on diesel prices remains uncertain.
Financial pressure on elevators could affect grain movement and payment timing for producers.
Agriculture Shows
Agriculture is the most important industry in the world, and Ag PhD Daily brings you the information you need to best manage your business only on RFD-TV and RFDTV+
Hosted by Scott “The Cow Guy” Shellady, Commodity Talk on RFD-TV and Rural Radio SiriusXM Channel 143 delivers expert insight into today’s agricultural commodity markets just before the CME opens.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.