Growing Returns

What to watch for during today’s farm bill markup in the House

The House Agriculture Committee meets today to begin markup on the 2018 draft farm bill. While markup is only the first step of a long process, it will tell us a lot about the road ahead.

The farm bill provides the largest source of federal funding for conservation on private lands – and with 70 percent of U.S. land privately managed, the farm bill is a major driver of efforts to improve water and air quality, increase wildlife habitat and build drought resilience.

While much of the focus will be on whether the Conservation Stewardship Program will be folded into the Environmental Quality Incentives Program (EQIP), here are six additional conservation items to keep an eye on during markup. Read More »

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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 »

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$1 million USDA award expands public-private partnerships for ag sustainability

A collaboration between Smithfield Foods and Environmental Defense Fund has reduced fertilizer loss and improved soil health on more than 400,000 acres in the regions where Smithfield sources feed grain. That acreage is set to grow thanks to a new USDA Regional Conservation Partnership Program (RCPP) award of $1,080,000.

The RCPP project will expand Smithfield’s ongoing grain sustainability efforts in North Carolina and scale up the program in Iowa, providing additional opportunities for farmers interested in improving their operations. Participating farmers will be supported by the combined efforts of 16 partner organizations, which include producer groups, government agencies, universities and nonprofits. Read More »

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Climate-resilient agriculture requires both global and local action. Here’s how.

2017 saw 16 weather and climate disasters that cost a billion dollars or more, from freezes and hail, to fires and flooding. Agricultural losses from Hurricane Harvey, Hurricane Irma, Hurricane Maria and California wildfires alone totaled more than $5.7 billion – and counting.

With extreme weather becoming more common, we all have a stake in building a food system that can absorb and recover from such stress. A resilient food supply equips farmers with the tools and incentives to find climate-smart solutions, and that requires action globally and locally. Read More »

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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 »

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This Illinois farmer is breaking down siloes. Here’s how.

My first impression of Len Corzine was that he isn’t the kind of guy who sits back and waits for people to bring him ideas on how to innovate or improve stewardship – he actively searches for them himself. He then shares these ideas with peers and colleagues.

When I visited Len’s farm in Assumption, Illinois, five years ago, I immediately saw that Len was an early adopter of tools and technologies to help him grow more with less. Like a kid with a brand new bike, Len could not wait to show me the computer software he was using for soil samples and variable rate application of nutrients, or the maps that helped guide his every decision.

To date, Len’s farm has reduced soil erosion, cut fertilizer use per bushel by half, and adopted satellite-guidance technology in its tractors to reduce fuel and chemical use. All while yield productivity has increased 80 percent. Read More »

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3 ways Amazon’s purchase of Whole Foods could affect agriculture and the environment

Photo credit: USDA

The vast majority of the media stories surrounding Amazon’s acquisition of Whole Foods have focused on how the deal could affect the cost of food, home delivery services, competition in the retail space and our overall shopping experiences.

While it’s still too early to predict what exactly Amazon will do with hundreds of new brick and mortar grocery stores, here are three possible implications for farmers and the land they rely on to grow our food.

1. Demand for organic could skyrocket

As of last month, organic products represented more than 5 percent of all grocery sales in the US – and organics have been one of the strongest areas of growth for many retailers and grocery stores.

Now, with Whole Foods under the Amazon umbrella, that demand could increase exponentially. POLITICO noted that if this happens, “domestic organic acreage isn’t positioned to handle such an expansion.” Read More »

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What does the end of the Paris deal mean for agricultural innovation?

Agriculture has faced increasing disruption from extreme weather and climate shifts over the past 40 years.

In the face of an ever-changing climate, agricultural innovation is more important than ever.

No matter your views on climate change, the United States’ exit from the Paris agreement could compromise the ability of farmers and agribusinesses to become more resilient in the face of extreme weather events.

In the absence of federal leadership, individual farmers, state and national ag associations, food companies, retailers, and environmental organizations will need to fill the void.

I’m confident we can do this, because all the farmers I’ve ever known are incredible innovators and are willing to implement practices that can mitigate the effects of an unpredictable climate – practices that also protect their businesses. Read More »

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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 »

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Conservation relies on profitability

Conservation practices help make this wheat field more profitable Whether in agriculture or any other business, if you don’t have enough money coming in to pay the bills, it’s hard to find the time or resources for anything other than working to turn a red budget spreadsheet black.

A wheat farmer friend from Washington recently told me that current prices are $4/bushel, the same as 40 years ago. Take into account inflation, and that’s a significant decline. Nationally, the USDA predicts that net farm income will drop by almost 9 percent this year, the fourth year in a row of declines after reaching a record high in 2013. Farmers also face enormous volatility in income, with fluctuations in yield, demand, as well as crop and input prices.

It’s no surprise then that environmentalists’ calls to cut crop insurance, disaster programs or other conservation payments fall on deaf ears in the agricultural community – or serve only to raise blood pressure levels across the Corn Belt. Read More »

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