June 29, 2009 Recession touches organic dairy farming Play video

(NECN: Anya Huneke, Randolph, Vt.) - When Brent and Regina Beidler bought a farm in Randolph, Vermont 11 years ago, they decided to do what only a small number of dairy producers were doing at the time -- organic farming.

"It was before the big wave in Vermont," Regina said.

They were on the cusp of an organic movement that has since drawn new farmers into the field, and prompted some conventional farmers to make the switch.

"Before the recession hit, the organic industry as a whole was growing at a rate of about 20-percent per year," Brent said.

And the growing industry was sustained -- even surpassed -- by demand from consumers who were willing to pay more for what they saw as a healthier, more environmentally-friendly product.

"Demand was strong," Brent said. "We weren't able to meet the demand in the marketplace."

Then the recession hit, taking a bite out of the organic dairy farming industry, as it has so many others.

Milk producers were forced to adjust. One farm in Vermont has shut down, and many cut back.

"In conversations with all the farmers, we decided we'd all take a 7-percent drop in production," Regina said.

As they produce less milk, the Beidlers are trying to increase their efficiency and self-sufficiency on the farm -- adding new crops, and growing their own feed.

"It's an opportunity to look at the situation and say, 'If we do this, what difference will it make economically and sustainability-wise

Despite the challenges organic dairy farmers are facing, the Beidlers say the real crisis remains in the conventional dairy industry, where farmers are receiving half of what they used to for their milk.

Organic farmers see far less fluctuation in milk prices. Still, many who jumped into farming during the recent organic boom are now mired in debt.

Dave Rogers of Vermont's Northeast Organic Farming Association said there are few immediate fixes for struggling producers.

NECN's Anya Huneke reports.