Long-term crop rotation studies enable economic analyses that include a more complete representation of possible profi t outcomes than do experiments of shorter duration. Th e objective of this study was to compare the profi tability and risk of organic input (OI) and chemical input (CI) 4-yr corn (Zea mays L.)-soybean [Glycine max (L.) Merr.]-oat (Avena sativa L.)/alfalfa (Medicago sativa L.)-alfalfa crop rotations with a CI 2-yr corn-soybean rotation using yield and management data from an 18-yr experiment in southwestern Minnesota. Estimated production costs were matched with trial yields and commodity prices to calculate a distribution of net returns for each crop rotation. Cumulative distribution functions (CDFs) were constructed and compared using stochastic dominance. Average production costs for the CI 2-yr rotation were higher than those for the CI and OI 4-yr rotations ($488 ha -1 , $405 ha -1 , and $409 ha -1 , respectively) though the OI rotation had higher machinery costs. Th e average net return for the CI 2-yr rotation was the highest of the three rotations analyzed when no organic price premiums were considered. However, when organic price premiums were applied, the average net return of the OI rotation was considerably larger than that of the CI 4-yr and 2-yr rotations ($1329 ha -1 , $675 ha -1 , and $846 ha -1 , respectively), and the OI rotation was stochastically dominant to both CI rotations at all levels of risk aversion.

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Organic input (OI) and low external input (LEI) cropping systems with extended crop rotations have potential to maintain crop yields while enhancing net return and soil quality. From 1992 to 2007, contrasting cropping systems were evaluated in a 2‐year soybean [Glycine max(L.) Merr.]‐corn (Zea maysL.) rotation and a 4‐year oat (Avena sativaL.)/alfalfa (Medicago sativaL.)‐alfalfa‐corn‐soybean rotation in southwestern Minnesota. When compared to the high external input (HEI) 2‐year rotation, corn grain yield was not reduced with LEI and OI 4‐year rotations, and soybean yield was not reduced with the LEI 4‐year rotation over all 16 years or with the LEI 2‐year rotation in the last 4 years. Across years and crops, net return was 88% greater with the OI 4‐year rotation than the HEI 2‐year rotation, but was 19 and 15% lower with the LEI 2‐ and 4‐year rotation, respectively. Particulate organic matter and potentially mineralizable C in 2001 were higher with the OI system than the other systems in both rotations. These results demonstrate that with diversified rotations, organic systems can produce high and profitable crop yields while enhancing soil quality, and that corn and soybean yields can be maintained in LEI systems. However, OI and LEI systems are constrained by greater management and labor requirements and pest management challenges than HEI systems.

Purpose The USDA’s Risk Management Agency (RMA) made several changes to the crop insurance products available to organic growers for the 2014 crop year. Most notably, a 5 percent premium surcharge was removed and organic-specific transitional yields (t-yields) were issued for the first time. The purpose of this paper is to use farm-level organic crop yield data to analyze the impact of these reforms on producer insurance outcomes and compare the insurance options for new organic growers. Design/methodology/approach This study uses a unique panel data set of organic corn and soybean yields to analyze the impact of organic crop insurance reforms. Actual Production History values and premium rates are calculated for each farm and crop yield sequence. Producer loss ratios and subsidized premium wedges are compared for yield, revenue and area-risk products before and after the instituted reforms. Findings Results indicate that RMA succeeded in improving the actuarial soundness of the organic insurance program, though further refinement of organic t-yields may be necessary to accurately reflect the yield potential of organic producers and avoid reductions in program participation. Originality/value This paper provides insight into the effectiveness of reforms intended to improve the actuarial soundness of organic crop insurance and demonstrates the effect that the reforms are likely to have on new and existing organic farms. Because this analysis uses data collected independently of RMA and includes farms that may or may not have purchased crop insurance, it avoids the self-selection problems that might affect analyses using crop insurance program data.

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