Economic Contribution of Organic Production in Texas

Texas produces numerous organic crops (grains, cotton, oilseeds, vegetables, fruits, and other crops), with organic crop sales from production agriculture totaling $111.6 million in 2019. This production leads to a total statewide economic output of $241.7 million annually, including $129.8 million contribution to gross regional product (value added) and 99.0 million in labor income, and about 4,780 full- and part-time jobs. Labor income is a component of value added, which is part of output, so the figures in Table 1 cannot be summed.

Sales of Texas livestock and poultry totaled $35.5 million in 2019. Organic livestock and poultry production is associated with a total statewide economic output of $75.3 million annually.  This total contribution includes $33.8 million contribution to value added, $19.1 million in labor income, and about 820 full- and part-time jobs across the state. 

Organically produced livestock products (milk and eggs) contributed an additional $277.1 million in sales, leading to $621.9 million in total output, $213.8 million in value added, $129.5 million in labor income, and about 2,720 full- and part-time jobs across the state.

Total organic sales (crops, livestock and poultry and livestock and poultry products) in the state totaled $424.3 million in 2019.  These organic sales supported $938.9 million in output, $377.4 million in value added, $247.6 million in labor income, and about 8,320 full- and part-time jobs across the Texas Economy. 

Table 1. Economic Contribution of Organic Production in Texas, 2019

 OrganicSalesOutputValue AddedLabor IncomeEmployment
Crops$111,631,000$241,677,400$129,791,600$98,998,5004,781
Livestock & Poultry$35,540,000$75,272,600$33,751,800$19,088,200820
Livestock & Poultry Products$277,132,000$621,945,700$213,833,400$129,483,6002,720
Total$424,303,000$938,895,700$377,376,700$247,570,4008,322

Indicators included in this analysis include economic output, value-added, labor income, and employment. Economic output is a measure of gross business activity and represents the gross expenditures resulting from direct, indirect, and induced business activity. Value-added is economic output less intermediate purchases from other sectors and represents the industry’s contribution to the state’s gross domestic product (GDP). Labor income includes employee compensation (salary, wages, and benefits) and sole proprietor income. Employment represents the number of full, part-time, and seasonal employees, including sole proprietors.

Bob Whitney, Samuel Zapata, Luis Ribera, Dan Hanselka, and Rebekka Dudensing. Department of Agricultural Economics, Texas A&M AgriLife Extension Service

Citrus Production Down +70% in RGV

No available labor to rehab damaged groves

I recently had a chance to visit several organic citrus and vegetable farms in the Rio Grande Valley and the lingering effects of the February freeze are still hard to look at. In this picture above you have a grove that has been all but abandoned. The trees are mostly alive but the massive pruning that needs to happen is just not going to happen anytime soon!

I was impressed by the Holbrook’s (Dennis and Russon) organic groves. They certainly had to prune a lot of dead wood but overall the trees seem to have done better than many other groves I visited. It would be interesting to quantify the difference in the care between the two systems (organic vs conventional) and see if the visual difference is due to organic production or something else. In the Holbrook’s case they will stay organic no matter what!

TDA Organic Agricultural Industry Advisory Board

On August 23, 2021 the Texas Department of Agriculture Organic Industry Advisory Board met in Austin at the TDA building on Congress Avenue. This is the first time in over a year that the group has been able to meet in-person and discuss organics in Texas. I was privileged to have a chance to present information about my position as organic specialist with AgriLife Extension and talk about organic agriculture in Texas.

This picture shows front row left to right, Dr. Randy Harp – Higher Ed., Brandi Chandler – TDA Coordinator for Organic Certification, Victoria Velarde – Producer, Robert Morton – HEB, Scott Sroufe – TDA Marketing Specialist. Back row, Tony Sanchez – Rice Belt Warehouse, Cliff Bingham – Producer, Donald De Jong – Producer and Chairman, Bob Whitney – Extension Organic Specialist and Dan Hunter – Assistant Commissioner for TDA.

Not pictured: Juan Anciso – Extension Horticulture Specialist, Randy Brazil – Producer, Greg Devillier – Processor, Amy Griffith – Public, Jed Murray – Trade Associations, Russon Holbrook – Retail.

Organic Cost Share Program

The U.S. Department of Agriculture (USDA) has announced that organic producers and handlers can now apply for funds to assist with the cost of receiving or maintaining organic certification.  Producers can be reimbursed for expenses made between Oct. 1, 2021, and Sept. 30, 2022, including application fees, inspection costs, fees related to equivalency agreement and arrangement requirements, travel expenses for inspectors, user fees, sales assessments, and postage.  Reimbursement is up to $500 but they have announced an additional $20 million that will “complement” this cost-share program.  Details are to be announced soon.  You can sign up at your local FSA office or even better TDA is going to have an online signup.  Check this website for details. https://tinyurl.com/aznme3ry

Organic – A Word That Means Something!

Most people do not realize how seriously everyone in the National Organic Program (NOP) takes their participation in what is known as “organic agriculture.” To be organic and to grow organic and to sell anything labeled as organic is governed by laws enacted by Congress. Click on the picture above and it will take you to a website with one page. On that page it shows the % of violations that have been done by those NOP certified organic or by those not certified yet making an organic claim. USDA takes it serious!

Every organic producer in order to sell as an organic producer must be NOP certified unless gross sales are less than $5,000 and even then you must follow the law as if certified. In Texas there are approximately 384 Certified Organic Crop and Livestock Producers.

Every organic buyer, known as a handler, must be certified to handle that organic product before it is finally packaged with an organic label. In Texas there are approximately 405 Certified Organic Handlers.

In order to even use the word “organic” on a product label there are very specific USDA AMS rules listed below:

Can a product be labeled “organic” without being certified? 

  • If you make a product and want to claim that it or its ingredients are organic, your final product probably needs to be certified.
  • If you are not certified, you must not make any organic claim on the principal display panel or use the USDA organic seal anywhere on the package. (see exemption below)
  • You may only, on the information panel, identify the certified organic ingredients as organic and the percentage of organic ingredients.

What do the organic product labeling rules cover? 

  • Covers wording allowed on both the front panel and the information panel of a packaged product:
    • Principal display panel (PDP): portion of the package most likely to be seen by customers at the time of purchase.
    • Information panel (IP): includes ingredient statement (list of ingredients contained in a product, from highest to lowest percentage of final product) and other product information.

So, to say we take the word “ORGANIC” seriously might be an understatement!

Texas Organic Rice Production Guide

Texas organic rice acreage has steadily increased over the past decade, driven by increased market demand. Since 1995, organic rice acreage has increased in the U.S. by almost six-fold, with a majority of acreage being grown in the Southern U.S. The acreage in Texas alone reached more than 19,000 in 2022.

Texas has over 70 certified organic rice producers scattered from Beaumont to Victoria all along the Texas coast with a few just south of Houston – still! These producers sell to nearly a dozen different organic rice buyers and this rice makes its way into several Texas grocery chains.

What are the major issues facing organic rice producers? Fertility is a concern with almost every crop and rice is no exception. Using organic cover crops though can be a real benefit to rice producers supplying 60 to as much as 108 lbs of N to the subsequent rice crop. In rice these cover crops have to be incorporated early, as much as 4 weeks early, to prevent a strange condition known as straighthead. This extra time allows the cover crop to break down with little to no effect on the crop.

Another major issue is having good organic rice varieties. Fortunately we not only have great Texas A&M AgriLife rice breeders we also have an outstanding Rice Foundation Seed Program begun way back in the spring of 1941. As researchers develop new varieties, Foundation Seed makes those varieties available to rice farmers including organic rice farmers.

If you want to learn more about rice and the rice programs of Texas A&M Agrilife go to https://beaumont.tamu.edu. If you want to read the Texas Organic Rice Production Guidelines publication go to https://tinyurl.com/cdbz3fjd. And remember to eat Texas organic rice every chance you get!