Consumer Preferences for Organic Standards: Does the Final Rule Reflect Them?

This paper compares the USDA National Organic Program Final Rule with consumer preferences. Results of a survey administered to a group of current consumers of organic food indicate that most consumers prefer the stricter version of standards and will pay to avoid the “Big 3” (Genetically Modified Organisms, Municipal Sewage Sludge (a.k.a., Biosolids) and Irradiation) in organic food. Welfare impacts of the Rule are measured. Regression results suggest those most willing to pay to avoid the Big 3. Implications of these results for public policy and private firm strategy are discussed.