Growing Returns

Selected tag(s): farm finance

Breakthrough agricultural loan rewards farmers for environmental stewardship

Quantifying the long-term financial benefits of conservation practices that build farm resilience and recognizing that value in the financing offered to farmers would be transformative for farms, lenders and the environment.

That idea received a major boost when Farmers Business Network, a global farmer-to-farmer network and ag tech company, launched a new farm operating loan that includes a lower interest rate incentive for farmers who achieve climate and water quality benchmarks.

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New program sheds light on cover crop financials with big data

This post was co-authored by Katherine Wilts Johnson, extension economist at the University of Minnesota’s Center for Farm Financial Management.

Farmers’ interest in cover crops is growing rapidly along with increased focus on soil health. But one of the most important questions farmers continue to ask is how cover crops will impact their finances.

A new program launched by Environmental Defense Fund and the University of Minnesota’s Center for Farm Financial Management (CFFM) aims to answer the economic questions farmers have about cover crops by developing a new farm financial benchmarking program within the FINBIN database — the largest publicly available farm financial database in the country.

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What agricultural lenders need to know about emerging carbon market opportunities

Carbon markets have captured the attention of the agriculture sector, and agricultural lenders are no exception. I recently heard from a lender that their number one question from their farmer borrowers is about carbon credit opportunities.

As trusted advisors to farmers, here’s what lenders need to know to navigate these conversations. Read More »

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What does the executive order on climate-related risk mean for agricultural finance?

The recent federal executive order on climate-related financial risk institutes a whole-of-government approach to assessing and mitigating climate-related financial risk, with the goal of bolstering the resilience of financial institutions and the communities they serve.

As a sector dependent on natural resources and predictable weather conditions, agriculture is particularly vulnerable to climate change. Maintaining U.S. agriculture’s position as a global leader long into the future will require the sector to address climate risk head-on, and soon, with innovative financial solutions that move beyond managing risk and move toward financing resilience.

Here are some of the implications of the executive order for agricultural finance institutions, and opportunities for these institutions for support a more resilient and prosperous food system. Read More »

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How a data-driven approach makes profitable on-farm conservation possible

New data and insights are now available from Precision Conservation Management, a partnership organization that connects 280 Illinois and Kentucky farmers with conservation specialists from local soil and water conservation districts to provide actionable data on conservation financials.

Over the last five years, PCM gathered field-level farm management data — including the number of passes across the field, the rate of inputs into those fields, tillage passes and cover crop use — integrating that management data with cost tables created by the University of Illinois to provide farmers with the financial outcomes of different conservation practices.

Here are the top three insights from five years of farm data. Read More »

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How financial data can bridge the investment gap to scale soil health

This blog post was co-authored by Camille Morse Nicholson of the Midwest Row Crop Collaborative.

The increasing attention being directed at agriculture and the environment by policymakers and the private sector is a welcome shift — one on which the future of our agricultural system depends.

However, there remain a host of uncertainties to be resolved as we shift the system to one that not only produces food, fuel and fiber, but also delivers soil health, biodiversity and climate resilience benefits.

The Midwest Row Crop Collaborative (MRCC), a coalition of companies and NGOs, is working to break down barriers to scaling climate-smart practices, including closing the information gap on the financial benefits of conservation practices like cover crops and nutrient management, and helping farmers invest in these practices, confidently. Read More »

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Farm Credit CEOs discuss emerging opportunities to finance resilient agriculture

Climate change is already impacting farmers, both through extreme weather events and more variability in temperature, rainfall and pests. At the same time, farmers and the broader agricultural system can provide climate solutions and build resilience to reduce climate-related risk.

This dual opportunity has implications for the entire agricultural system, including the agricultural lenders who finance farms. Read More »

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Cargill and Soil Health Institute find farmer experience with soil health pays off. Here’s how.

Findings from a recent Soil Health Institute study add to growing evidence that soil health practices can provide financial benefits to farmers.

The Soil Health Institute, with support from Cargill, interviewed 100 farmers across nine states to measure the farm budget impacts of soil health practices.

“I believe this work is a critical area and critical question that we need to better address as we look at scaling up of soil health principles,” said Ryan Sirolli, Global Row Crop Sustainability Director at Cargill, during a webinar hosted by the Soil Health Institute. Read More »

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3 ingredients for success in soil health

This blog was originally posted on Soil Health Partnership’s blog.

Profitable conservation systems don’t look the same on every farm. Growers must implement different strategies to address their specific needs, thanks to a wide range of variables including soil type, moisture availability, equipment and labor. However, just because every farmer takes a slightly different approach to soil health doesn’t mean there aren’t some consistent success factors.

In our recent report, Conservation’s Impact on the Farm Bottom Line (developed in partnership with Environmental Defense Fund and the agricultural accounting firm K·Coe Isom), we discovered that farmers who felt their soil health practices were making a difference — both in the data and anecdotally — took some similar approaches. These three “ingredients for success” increased their chances for achieving profitable conservation systems. Read More »

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Farmers’ bottom lines at risk as growing conditions change

Iowa currently finds itself in a “Goldilocks climate,” with just the right measure and timing of humidity, rainfall and heat that help make the state a national leader in corn and soybean production. However, new research shows that climate change threatens to upset this balance.

Small shifts in rainfall and temperature can have considerable impacts on crops and farmer livelihoods. To better understand how these shifts could impact farmers, Environmental Defense Fund partnered with K·Coe Isom, an agricultural accounting and business advisory firm, to produce an in-depth report that quantifies the potential localized economic impacts from these shifts that Iowa corn and soy farmers could face as soon as the next 10 to 20 years.

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