Final answer:
From the mid-90s to the present, organic agriculture has seen a robust growth, with increased market demand and more farmers adopting organic practices. Despite higher production costs, organic agriculture is supported for its environmental and health benefits. Price declines have been slow due to the higher costs of organic farming inputs.
Step-by-step explanation:
Organic agriculture production has undergone significant changes from the mid-90s until now. The worldwide market for organic foods has grown rapidly since 2000, with many countries establishing formal, government-regulated certification of organic food. During this period, there's been a heightened awareness of the potential ecological and health consequences of using fertilisers and pesticides, which has contributed to the growth of the organic food movement.
The production of organic foods involves farming methods that avoid synthetic pesticides and chemical fertilisers, and the adoption of these practices has increased over time. This shift is indicated by a move along the supply curve and an increase in the number of farmers converting to organic farming, resulting in a shift of the supply curve to the right. Although demand has also increased, leading to greater equilibrium quantity of organic foods, prices have not fallen substantially because production costs for organic foods remain higher due to more expensive organic fertilizers and pest management techniques.
It has been suggested that organic production is a more benign alternative to conventional farming, potentially addressing issues such as land degradation, soil erosion, and the disruption of natural nutrient cycles. The UN's Food and Agricultural Organization endorses organic farming, asserting that it can combat hunger and tackle climate change, while being beneficial for farmers, consumers, and the environment.