Growing Returns

3 ways agricultural lenders can help farmers reap millions in savings from conservation

The U.S. farm economy is in its worst condition in decades due to several years of low crop prices, ongoing trade disputes, natural disasters and other variable weather. But many farmers are adapting and innovating – implementing conservation practices that build soil health and resilience, such as nutrient optimization, cover crops and no-till.

Still, there is a growing need for farmers to understand the full financial benefits of these practices and prove their value to ag lenders and other financial partners.

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Four ways conservation pays for dairy farmers, even in a weak agricultural economy

The dairy industry is a critical part of the landscape, economy and social fabric of Pennsylvania and the Chesapeake Bay. But it’s under stress.

Dairy is in the fourth year of an economic downturn in which many farmers have struggled to break even. Dairy farmers in Pennsylvania and across the U.S. are highly motivated to increase their resilience to unfavorable economic and environmental conditions, including highly variable milk and feed prices, unpredictable farm policies and extreme weather – most notably increased heavy rain events and flooding.

While dairy prices have recently trended upward and PennState Extension’s dairy outlook  predicts milk price could approach $20/cwt by the end of 2019, another PennState Extension analysis  found that the gross milk price breakeven point for most farmers in the state is $21.20/cwt.

Most of these factors are out of farmers’ control, but conservation is something farmers can be sure of.

That’s what my colleagues and I concluded after digging into the budgets of four Pennsylvania dairy farmers in our new report: How conservation makes dairy farms more resilient, especially in a lean agricultural economy. The report shows how a variety of conservation practices can deliver multiple returns on investment that simultaneously benefit the farm budget and the local environment.

Here are our four key findings: Read More »

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Scientists urge action to increase soil carbon

Soil is one of the most precious and finite natural resources, and maintaining healthy soil is mandatory to provide enough food for the planet in the face of a changing climate.

There is strong scientific consensus on the urgent need to rebuild agricultural soil carbon. That’s the topline message of a comment published this week in the journal Nature Sustainability.

Scientists and farmers know that increasing soil carbon can improve soil fertility, stabilize yields, reduce the need for inputs like fertilizer, and boost resilience to droughts and floods. That’s why so many soil health initiatives focus on building soil carbon.

While the importance of building soil carbon is widely endorsed, there is scientific debate about exactly how much carbon can be sequestered in soils. That is important data to know, but it should not distract us from doing all we can to continue to build carbon in the soil.

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“60 Minutes” interview with Land O’Lakes CEO underscores urgency of climate resilience

Sunday’s edition of “60 Minutes” featuring an interview with Land O’Lakes CEO Beth Ford put an urgent spotlight on the struggles that farmers are feeling from weather, tariffs and low prices.

From massive rainfall in the Midwest to flash droughts across the South, extreme weather is becoming a top concern among farmers, many of whom are acknowledging that climate change is impacting their operations, and they’re committing to resilience strategies. EDF’s farmer partners are telling us firsthand how climate change is altering their livelihoods, and they are thirsty for climate-smart tools and practices.

Ford rightly hones in on the role that technology plays in helping farmers hedge against the unpredictable in today’s tough environment and economy. Precision ag tools and technologies optimize inputs to achieve a more robust crop yield, in addition to healthier soils, improved water quality and other environmental benefits.

Technology is essential to advancing sustainability, but not without the corresponding informational, financial and policy drivers that will ultimately help us reach the goal of a resilient agricultural system. Read More »

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The star power of pollinators on the farm

The famous line, “If you build it, he will come,” voiced by an anonymous actor sets the entire plot of Field of Dreams in motion. Kevin Costner as Ray Kinsella may be the star, but the movie depends equally on that unnamed voiceover artist and on the actors playing Kinsella’s late father and former baseball legends, who arrive to play ball on a diamond in the middle of an Iowa cornfield.

This baseball classic shows how leading characters are important, but it is often supporting characters who carry the show. The same is true in nature. Charismatic species get the spotlight, but it’s a biologically diverse ensemble cast that creates a healthy ecosystem.

In the drama to save rapidly declining pollinators, which provide $3 billion of pollination services to U.S. agriculture each year, monarch butterflies are the high-profile star. The species’ population has plummeted 90% over the past two decades, a decline emblematic of the larger challenges that all pollinators face. The monarch’s many fans — drawn in by the butterfly’s beauty and awesome migration — have rallied to save them, and conservation efforts are benefitting other lesser-known, critically important pollinators.

If we had the Oscars for pollinators, monarchs would likely be nominated for the best actor category. The best supporting actor category would be competitive, but these three species, which work alongside the famous butterfly, would be strong contenders. Read More »

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This Midwest hog farmer wants to create a “butterfly effect” to bring back the monarch

Eastern monarch butterfly populations rebounded last year, largely thanks to favorable weather conditions during the butterflies’ 3,000-mile migration. To help make those increases permanent and reduce chances of an endangered species listing, we need to plant 1.5 million more acres of milkweed, native grasses and wildflower habitat on farms and ranches.

Farmers like Tim Richter, who manages a grain and hog operation in Iowa and Missouri, are stepping up provide monarchs with vital breeding and nectaring habitat.

I sat down with him to discuss what inspired him to restore monarch habitat, and to ask him what he wants other farmers to know about pollinator conservation. Read More »

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A new guide for farmers to boost profits through conservation

As the struggling U.S. farm economy continues to make the news, agricultural organizations, government agencies and conservation groups are rightly focusing their attention on the affordability of conservation adoption.

A 2018 report from EDF and agricultural accounting firm K·Coe Isom, Farm Finance and Conservation, found that farmers who adopt conservation practices such as no-till, nutrient optimization, cover crops and diverse rotations improved their profitability and were more resilient.

Despite these benefits, the costs of transitioning to conservation management practices can be a barrier to adoption. In addition, any change carries some risk, and farmers are likely to be reluctant to take on additional risk in the current economic climate.

For these reasons, it is more important than ever to provide farmers with practical guidance on how to minimize the costs and risks of conservation adoption. Fortunately, a new technical bulletin from the Sustainable Agriculture Research and Education (SARE) program at the U.S. Department of Agriculture does just that.

Cover Crop Economics: Opportunities to Improve Your Bottom Line in Row Crops [PDF] describes seven different management scenarios in which farmers can speed their transition to cover crops and achieve profitability more quickly — in some cases within the first year of adoption. Read More »

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The monarch ESA listing is delayed 18 months. Here’s what you need to know.

The U.S. Fish and Wildlife Service delayed its decision about whether to list the monarch butterfly as endangered or threatened until December 2020 — 18 months later than the original deadline of June 2019.

Because the original deadline resulted from a litigation settlement, this extension had to be approved by federal courts and the other parties to the litigation. While certainty about a regulatory decision of this scope is always beneficial, this mutually agreed upon delay creates an opportunity that shouldn’t be missed.

Here’s what farmers, ranchers and their partners need to know about how the delay will impact monarch conservation efforts. Read More »

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Gov. Newsom can be a climate leader by focusing on resilience. Here’s how.

In pulling the plug on the twin Delta tunnels and scaling back California’s high-speed rail line, Gov. Newsom broke from his predecessor, who fiercely defended the projects as part of his climate agenda.

But that doesn’t mean Newsom can’t build on Jerry Brown’s strong climate legacy. He can, all while charting a different legacy for himself.

While it may be unfair to reduce Brown’s climate achievements to a few bullet points, two themes often appeared in his initiatives: prioritizing policies to slash greenhouse gas emissions, and capitalizing on the state’s ability to impose mandates.

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How conservation can enhance a farm’s financial health — even in challenging times

With the U.S.-China trade war and flooding in the Midwest continuing to make headlines, national attention is focused on the increasing economic challenges facing farmers and their families.

After years of weak commodity prices, these financial stresses are adding up. In the Corn Belt, farm bankruptcies are at the highest level in over a decade.

Given this challenging economic outlook, some might assume that farmers will abandon conservation efforts and focus exclusively on their finances. However, many of the financial best practices cited by farmers and encouraged by farm financial advisers are the very same principles that can help farmers continue to improve environmental outcomes. Here are four examples. Read More »

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