Growing Returns

Selected tag(s): economics

Farmers open their books to show financial impact of conservation

Farm accountants have a lot more to offer than advice on how to maximize tax returns. In fact, they play a pivotal role in scaling conservation.

Environmental Defense Fund and K·Coe Isom AgKnowledge, a managerial accounting service for farmers and ranchers, teamed up with three Midwestern grain farmers to study how the adoption of conservation practices affects farm budgets.

These farmers, based in Iowa, Kansas, and Ohio, have all adopted some combination of no-till, crop rotations, cover crops and nutrient management. They were generous enough to open up their books so that AgKnowledge could analyze the financial impact of these conservation activities.

The full report will be out later this year, but initial results show how conservation can benefit farmers’ bottom lines. Here are three lessons we learned from this analysis. Read More »

Posted in Partnerships, Sustainable Agriculture / Also tagged , , , , , , , , | Comments are closed

3 steps to close the conservation data gap between farmers and investors

Farmer Scott Henry stands in a soybean field with a tablet computer.

Sustainable agriculture must be economically viable. Photo credit: Leslie Von Pless

In addition to benefiting the environment, on-farm conservation practices tend to create economic value for farmers and surrounding communities. Anecdotal examples of these benefits abound – fertilizer efficiency saves farmers money; no-till lowers labor and fuel expenses; and buffers and wetlands reduce downstream flood risk and drinking water treatment costs.

Quantifying them, however, remains a major challenge. The resulting data gap limits broader adoption of conservation measures.

Farmers care about stewardship, but many conservation practices require large upfront investment or take too long to produce returns. At the same time, investors want to help farmers generate financial and environmental benefits, but a lack of economic data holds them back, according to a study from Encourage Capital [PDF] and the USDA Natural Resources Conservation Service. Read More »

Posted in Partnerships, Sustainable Agriculture / Also tagged , , , , , , , | Comments are closed

A call to help us strengthen the economic case for sustainability practices

Green tractor on Iowa corn farm

Visiting my friend and Iowa corn farmer, Tim Richter.

Before installing a new heating system for your home, you’d want to conduct an analysis to make sure it’s worth the money, right? The same logic applies to farming – before a producer considers implementing conservation practices or new technologies, he or she will need to know how those practices will affect an operation’s bottom line.

Despite some good anecdotal information and several isolated field trial studies, the reality is we don’t have nearly enough information on the economic impacts – good or bad – of individual conservation practices. That means we cannot yet make an ironclad business case that will persuade the majority of farmers to implement conservation practices.

There are several key reasons for the dearth of information, and that’s partly my fault.

I’m hoping you can look past this and consider my call to work together to collect the necessary data to strengthen the case. Our food, livelihoods and landscapes depend on it. Read More »

Posted in Fertilizer, Partnerships, Supply Chain, Sustainable Agriculture / Also tagged , , , , , , , , , , , , | Comments are closed

Meet sustainable agriculture’s new whiz kid

Scott Henry is the business development manager for LongView Farms, a row crop grain operation in central Iowa that specializes in seed production

Scott Henry, 27, a partner and business development manager for LongView Farms

Every year right before Commodity Classic, EDF brings together a group of farmers who share their lessons learned in sustainable agriculture – and offer insights on bringing conservation practices to scale. These producers are our advisors, sounding boards and partners. They help us understand what agricultural policies really look like when implemented on the farm, and how best to convey to farmers that not all environmentalists point fingers at ag.

This year we had a new addition to the group, someone who brought an important perspective because he’s far younger than the average-aged farmer. Scott Henry is a 27-year-old partner and business development manager for LongView Farms, a row crop grain operation in central Iowa that specializes in seed production. Scott is responsible for business growth, strategy, production operations and the implementation of precision agriculture technology across the farm.

I asked Scott about his start in farming, about the importance of financial expertise in agriculture and whether sustainability really is good for growers’ bottom lines. Read More »

Posted in Sustainable Agriculture / Also tagged , , , , , , , , , , , , , , , | Comments are closed

How coastal restoration in Louisiana is helping rural communities in the Midwest

Hunkering down in a duck blind with my dad on the Cuivre River, which feeds into the Mississippi.

Hunkering down in a duck blind with my dad on the Cuivre River, which feeds into the Mississippi.

Clang. A knot of rusted chains pulls shut the driveway gate, bringing it closed with a final smack against a worn fence post. Just like that, my Sunday afternoon visit to our family farm in Clarksville, Missouri ends. After a quick trip home to Saint Louis, it’s time to catch a flight to Washington, D.C. for my internship.

But not before my dad asks, “Do you want to see downtown?”. I laugh, but agree to check it out. “Downtown” is a relative term in Clarksville – a quiet river community with fewer than 500 residents.

The streets slope down to the shoreline, where historic buildings meet the Mighty Mississippi. A few barges float nearby, unperturbed by the currents that pull toward the Gulf of Mexico. It’s a calm day on the river. I spot a sign emblazoned with a familiar red and white Army Corps castle. Just ahead, a concrete arm extends across the channel. Read More »

Posted in Ecosystems / Also tagged , , , , , , , , , , , , , , , , , , , , , , , | Comments are closed