Growing Returns

Why food companies must act now to protect public funding for climate-smart agriculture

A low sun shining over a brown farm field.

The reauthorization of the farm bill, which offers critical funding to support farmers and food businesses, is currently being debated in Congress. This is a crucial moment to support farmers and businesses—and major food companies need to make sure they take advantage of it.

What is at stake? Billions of dollars in funding intended to help American farmers adopt innovative practices and protect their businesses from climate-related disasters. If done right, food companies will see increased farmer engagement in climate-smart agriculture, supporting farmers in remaining competitive and in participating in new markets as consumer trends shift to more sustainably produced products.

Food companies can use their voice in Washington to safeguard this essential funding for mitigating agricultural emissions and protecting food supply chains. Contact us to learn more.

How this impacts companies

The farm bill has advanced emissions mitigation and landscape resilience through voluntary on-farm conservation programs like the Environmental Quality Incentive Program and Conservation Stewardship Program. Boosted significantly by the IRA, which allocated nearly $20 billion specifically for adopting climate-smart agricultural practices, these widely embraced and oversubscribed programs are garnering even more interest from farmers.

While USDA conservation programs largely provide resources and assistance directly to farmers, these investments can be felt by food companies as they:

  • Enhance supply chain resilience: As farmers and ranchers already grapple with extreme heat, drought, and other extreme weather events, conservation programs that increase the resilience of U.S. farms will help stabilize supplies of agricultural ingredients that serve as the base of the food supply chain.
  • Create public-private partnership opportunities: USDA provides funding opportunities for food companies and other stakeholders to partner with them to address resource concerns in local supply sheds through the Regional Conservation Partnership Program (RCPP). The IRA provided an additional $4.95 billion for RCPP.
  • Establish standardized climate-focused agriculture supplier practices: USDA’s work on climate-smart agricultural practices sets a credible baseline for companies to start from when working within their supply chain. This gives consumers confidence about claims made by companies and creates more predictable supplier standards for businesses.

What’s at risk

This injection of funds into popular conservation initiatives has the potential to significantly enhance the resilience of farms, rural communities, and food companies’ supply chains, while also mitigating the impacts of extreme weather events and protecting critical natural resources.

However, some lawmakers are contemplating removing the requirements that funding be spent on climate-specific conservation practices within the farm bill. Such a move threatens crucial programs that support farmers in corporate supply chains who are reducing emissions and improving resilience, which is why it’s important for companies to speak up now.

For more information on how your company can work with EDF to protect this funding, please contact Katie Anderson, EDF’s Senior Director of Business, Food and Forests.

 

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Danone commits to cut dairy methane emissions in partnership with farmers and EDF

Even if we completely eliminated fossil fuel emissions today, global food system emissions would cause us to exceed our 1.5 degree warming targets, unless they are slowed down. We cannot choose between food security and environmental sustainability – they are one and the same. Urgent action is needed to shift food and agriculture from a driver of climate change and biodiversity loss to a solution, with positive outcomes for producers, companies and consumers.

The good news? The global dairy company Danone is taking a big step forward by pledging to work with its farmer suppliers to reduce methane emissions from its fresh milk supply chain by 30% by 2030.

This announcement builds on past successes, with a plan to accelerate action in the years to come. It aims to achieve significant methane cuts while feeding a growing population and protecting the livelihoods of farmers around the world. And it creates a new level of ambition on methane emissions that I hope others in the food and agriculture industry will follow.

Even a large, global company can’t make this happen by itself. Danone is launching a strategic partnership with Environmental Defense Fund to support its methane reduction ambitions. Danone and EDF will work together in such areas as improved science, data and reporting standards, innovative financing models to help farmers of all sizes, and catalyzing industry and policy leadership through advocacy.

This is the first methane-specific climate pledge from a food or agriculture company. Danone’s size as a major global dairy company provides a significant opportunity for impact.

Read More »

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To meet sustainability goals, food companies need to slash methane

As the recent surge in corporate net zero commitments suggests, the risks associated with climate change are top of mind for today’s leading businesses and investors.

For companies that produce, process or sell beef, pork and/or dairy, there’s an often overlooked, invisible source of climate pollution lurking in the supply chain: methane.

An extremely potent greenhouse gas, methane has more than 80 times the warming power of carbon dioxide in the short term. This means cutting methane emissions is one of the fastest ways for businesses to make progress toward their sustainability targets, meet growing stakeholder demands for bold climate action and be more resilient.

The opportunity for leadership is especially urgent in the livestock sector, which is responsible for roughly one-third of all human-caused methane emissions globally.

While some food and agricultural companies are making progress on methane, there’s still a long way to go. Here’s what these companies need to know.

Read More »

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How ag retailers are helping improve water quality in the Chesapeake Bay

Farmers in front of a tractor Land O’Lakes SUSTAIN® platform – a powerful tool that can make a real impact in improving regional water quality — is coming to the Chesapeake Bay.

The Mill®, a large agricultural retail company, today became the first business in the area to utilize SUSTAIN in Maryland and Pennsylvania. SUSTAIN provides ag retailers with tools and training in best practices for fertilizer efficiency and soil health – such as cover crops and precision ag technologies – while maintaining the potential for high yields. Retail staff then bring this knowledge to the farmers they serve, meaning that one retail location can reach hundreds of farmers.

That’s why the platform, co-developed by Environmental Defense Fund, is taking off. Thus far, 27 ag retailers across the country have been trained, and food companies such as Smithfield Foods, Campbell’s Soup, Unilever, and Kellogg are connecting to the SUSTAIN platform as a way to meet their corporate sustainability goals.

I asked Ben Hushon, owner of The Mill, to tell me what this means for the Bay, for his company, and for farmers. Read More »

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Cover crops: a new opportunity for ag retailers

Corn planted in cover crops. Photo courtesy of SUSTAIN.

Corn planted in cover crops. Photo courtesy of SUSTAIN.

For the fourth year in a row, a nationwide farmer survey found a boost in soybean and corn yields following the planting of cover crops. That’s in part why cover crop usage increased 350 percent from 2008 to 2012 among the farmers surveyed.

Cover crops are also great for the environment, since they help keep excess nutrients in the field and out of waterways. Yet only around 2 percent of all U.S. farmland uses cover crops, an alarmingly low figure.

That leaves a ton of room for improvement, which could result in huge environmental gains – and a new business opportunity for ag retailers.

Ag retailers that offer expertise on and sell cover crops to their famer customers can get in on this rapidly growing trend. And in so doing, gain customer loyalty and stand out from competitors. Read More »

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How this ag retailer is changing the entire U.S. food production system

Man in a farm field

United Suppliers’ Matt Carstens

In 2014, Walmart challenged its suppliers to find ways to reduce fertilizer runoff from farms – which can cause air and water pollution and mean wasted money for farmers. The target was food companies whose supply chains use large quantities of fertilizer for commodity crops like corn, and the goal was to improve efficiency in their supply chains. Two years later, nearly 20 Walmart suppliers have signed on to the initiative, spawning a trend in which supplier commitments drive tangible changes on American farms.

At the heart of this fertilizer efficiency trend is Matt Carstens, VP of Crop Nutrients for United Suppliers and the force behind a sustainability platform for farmers called SUSTAIN, developed in coordination with Environmental Defense Fund.

SUSTAIN trains ag retailers on the best practices for fertilizer efficiency and soil health. As ag retailers are a primary source of advice for farmers, the retailers then bring this important knowledge to the farmers they serve.

SUSTAIN is proving to be popular as a way for food companies to connect directly with farmers in their sourcing areas. Thus far, Smithfield Foods, Campbell’s Soup, and Unilever are all using SUSTAIN as part of their sustainable sourcing efforts. And Kellogg’s is the latest big brand to jump on board, with an announcement today that they, too, will be using SUSTAIN.

I asked Matt to explain the reason for this trend, why ag retailers believe in SUSTAIN, and how he got involved in the ag retail world. Read More »

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From Southwestern India to Iowa: Why farming is at the heart of sustainability

Hiking in India

Studying in the Western Ghats region of India.

When I was younger, I fantasized about becoming a Jane Goodall for the millennial generation. I imagined living in the wilderness to study animals’ behavior and help conserve land. During college, I briefly lived out my dream when I spent a summer in the biodiversity-rich Western Ghats region of India, living and working on a private wildlife sanctuary where I studied the local flora.

The sanctuary was an island of preserved land, surrounded by vast farms that dominated the region’s landscape. While there, I had an epiphany – one that brought me back to my own family’s agricultural history on a farm in Iowa.

I realized that if we don’t work with farmers to conserve wild places, we will never be able to create truly sustainable environments for animals and humans. If I really wanted to make an impact on the Ghats region and its biodiversity, I’d need to move beyond a private sanctuary and back toward my family’s farming roots.

India showed me first-hand the need to partner with farmers. Spending summers on my family’s farm in Iowa and steering the tractor with my grandfather taught me to appreciate the integral role farmers play in maintaining balance in the ecosystem – and that farming is incredibly hard work. Both of these experiences still influence my agricultural career, which is focused on deploying the SUSTAIN™ platform, developed by United Suppliers, Inc. in coordination with EDF, to assist growers in improving fertilizer efficiency and soil health. Read More »

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How an ag retail program is scaling up sustainable practices

shutterstock_144822175SUSTAIN™ is continuing to gain momentum with food companies and government agencies.

Just today, the world’s largest pork producer, Smithfield Foods, said it would begin using the platform to reduce nutrient losses across its Midwest sourcing areas. And last week, the U.S. Department of Agriculture announced $720 million in funding through the Natural Resources Conservation Service’s Regional Conservation Partnership Program (RCCP) to advance sustainable practices. SUSTAIN is part of two RCPPs in Illinois and Iowa that will encourage more growers to engage in voluntary nutrient management and conservation practices.

SUSTAIN was developed by United Suppliers, Inc., a cooperative of agricultural retailers whose customers span 45 million acres across the U.S. and Canada, in coordination with EDF. The program trains ag retailers in using proven, effective technologies, practices, and products that advance sustainable agriculture. The retail staff then bring this knowledge to the growers they serve.

This unique business model has the potential to bring sustainable farming measures to scale. One ag retail location can for example reach hundreds of growers and thousands of acres.

Here are the details on why these two announcements mean a big leap forward for agricultural sustainability. Read More »

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How this ag retailer is helping farmers scale the sustainability mountain

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SUSTAIN-authorized retailer Jake Rechkemmer

Eighteen months ago, I’d never heard of United Suppliers – a cooperative of 560 locally owned and controlled agricultural retailers who operate nearly 2,500 retail locations that serve 45 million acres in the U.S. and Canada.

Now, I spend 75 percent of my work day focused on the SUSTAIN™ platform, developed by United Suppliers in coordination with Environmental Defense Fund. SUSTAIN works to train and authorize ag retailers on tools, technologies and practices for fertilizer optimization and improved soil health – without sacrificing yield.

And SUSTAIN is on fire – by the end of this year, over 200 ag retail employees will be authorized as SUSTAIN representatives, and General Mills, Campbell’s Soup, Unilever, Kellogg’s, and Smithfield Foods are all using or will use the platform in their sustainable sourcing efforts.

Part of the platform’s success is due to its unique model – it’s deployed through existing, trusted relationships that growers already have with their ag retailer. That’s why I asked SUSTAIN-authorized retailer Jake Rechkemmer, agronomy manager at Dunkerton Coop in Dunkerton, Iowa, to tell me about his SUSTAIN journey. Read More »

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When landowners invest in sustainability, everyone wins

19007_Aerial View of Field.JPGForty percent of the U.S. is taken up by farmland. Yet only half of these acres are actually owned by active farmers. In the Corn Belt, 70 percent of growers rent some portion of their land from a non-farming landlord. And the biggest growth in non-farming landowners is coming from investors that see farmland ownership as a good business opportunity.

Here’s the problem: non-farming landlords aren’t always informed on the best ways to care for the farm, which can present environmental and economic challenges for tenants and the owners themselves.

As more non-farmers buy up cropland, government agencies, organizations, and even the private sector will need to ramp up efforts to educate landowners on the importance of soil health, fertilizer efficiency, and other conservation measures in protecting their farm’s value and making the land more resilient to extreme weather events.

Non-farming landowners can be a powerful partner in reducing agriculture’s environmental footprint at scale and ensuring food productivity in the future. Plus, when landowners invest in sustainability and collaborate with those farming their lands, everyone wins – growers, landowners, consumers, and the planet. Read More »

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