Organic farms are more likely to exit the business 1-2 years after entering, according to a study
A strong economy plays a role in consumer demand for organic goods, but a new study has found large organic farms only last around two years.
Economists with the Ag and Applied Economics Association found organic production is more concentrated on larger farms when demand for those goods goes up, but those facilities are more likely to exit organic production just one to two years after entering.
Authors of the study say it is because large organic farms are more sensitive to market conditions than smaller ones. Researchers came to this conclusion after looking at data from the 90s when organic farming began to take off.