Why does "organic" cost more?

The biggest criticism of organic food is its cost. There are several reasons it’s more expensive.  Organic farmers pay more for organic animal feed, and the farming is more labor intensive, since farmers avoid chemical fertilizers and pesticides. 

Organic food may cost ten to forty percent more than conventionally grown food (Quinn). Organic farmers avoid chemical fertilizers, they use compost and animal manure, which is bulkier and more expensive to ship. This also means their crop yield is usually lower. Conventional farming also uses every acre of farmland to grow crops, while organic farmers rotate their crops to keep soil healthy. Consumers have also been found to have specific reasons for not purchasing organically grown foods. Those who do not invest in organic products are found to not do so because of the food being too expensive, poor availability and lack of time to find retail outlets, unsatisfactory quality, satisfaction with their current food purchases, and unfamiliarity with the term "organic” (Magkos).

On the other hand, the way in which consumers decide to purchase organic products has also been investigated. Catherine Quinn, from “The Question of Health: is Organic Food Better for You than Conventionally Farmed Produce?” uses a model she developed for the reason of purchasing organic foods that includes four factors: cue utilization (organically grown label, naturally processed, price), health and environmental concerns, trade-off of perceived quality and cost, and the influence of perceived value on willingness to buy.

All of these production costs mean organic farming tends to be more expensive than conventional farming, and this is reflected in how much you pay at the grocery store. However, when you take into account the true “cost” of food production from conventional farming, including replacement of eroded soils, cleaning up polluted water, health care for farmers who get sick, and environmental costs of pesticide production and disposal, organic farming might actually be cheaper in the end. (It's Easy Being Green, par. 9)