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Demand for organic feedstuffs far outstrips domestic supply

Organic and non-GMO sales in the U.S. amount to chicken feed, but that chicken feed is increasingly imported because U.S. farmers aren't in a position to fill demand for certified organic or even non-GMO feed.  The gap between supply and demand in organic and non-GMO feed markets offers an opportunity for farmers, but price takers aren't jumping to join the marketing wave. Premiums are also there for non-GMO crops, but they are significantly lower than organic and harder to predict. Regional factors play more into that. USDA reports non-GMO feed was pulling a premium of 12% to 14% above the average market price last year compared to genetically engineered feed commodities. Imports of organic corn have gone from 3.1 million bushels in 2014 to a projected 17.9 million bushels this year. Those imports could top 20 million bushels in 2017. Much of that organic corn is coming from Turkey, Romania and Argentina. For soybeans, the organic imports are even higher, hitting 40 million bushels this year. Imports made up 40% of the market in 2015 for U.S. organic corn feed and will likely top 50% this year. For soybeans, imports accounted for 78% of the U.S. organic feed market. Between the two, the U.S. is importing roughly $353 million in organic corn and soybean feed -- in a country that plants more than 188 million acres of mostly biotech corn and soybeans.

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