Producers of organic products usually receive higher prices for their commodities over conventional commodities. This price premium allows organic farmers to recoup costs associated with organic production.
However, the price premiums for products such as organic apples, strawberries and spinach—the top organic products by value of production—have been decreasing since 2015. Food price inflation in 2022 was at its highest since 1979, and consumers experienced higher food prices both for organic and conventional produce.
That led to a narrowing of premiums between wholesale prices of organic and conventional produce as conventional prices increased at a higher rate than those for organic produce. The Organic Trade Association reports that organic producers were hesitant during the COVID-19 pandemic to further increase prices of their products given the higher price point faced by consumers. — USDA Economic Research Service
