Growing Returns

Selected tag(s): agricultural finance

Trends to scale collective impact at the 2023 Sustainable Agriculture Summit and beyond

By / Bio / Twitter profile / Published: November 21, 2023
hand in soil showcasing cover crop growth.

Establishing a cover crop during the cool season.

In early December, the EDF climate-smart agriculture team will join hundreds of farmers, food and agriculture companies, university experts and other conservation organizations at the 2023 Sustainable Agriculture Summit, “Scaling Collective Impact: Collaborating to Accelerate Agricultural Sustainability.” This conference is one of the largest annual gatherings of people working to improve sustainability in U.S. agriculture, and the discussions held in the conference sessions and hallways reflect the major trends, opportunities and challenges facing those who share this goal.

Here are some expected “hot topic” discussions at the conference and throughout the agricultural sustainability movement as we approach 2024.

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Cover crop costs vary significantly: new data from 83 Minnesota farms shows

By / Bio / Published: July 26, 2023

farm with a barn in the background

Data on the financial impacts of climate-smart practices, like cover crops, can help inform farmers’ financial decisions when considering these practices. While cover crops can help improve soil health and make farms more resilient to extreme weather, farmers continue to have questions about the types of financial impacts cover crops will have on their operations. A multi-year collaborative project is collecting and analyzing data to help farmers and their advisers answer these questions.

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Climate, agriculture, and finance: exploring connections at the Fed

By / Bio / Twitter profile / Published: May 31, 2023
Maggie Monast on a panel at the The Federal Reserve Bank of Kansas City’s 2023 Agricultural Symposium, “The Changing Geography of Agricultural Production.”

Maggie Monast as a panelist at the The Federal Reserve Bank of Kansas City’s 2023 Agricultural Symposium, “The Changing Geography of Agricultural Production.”

The Federal Reserve Bank of Kansas City’s 2023 Agricultural Symposium, “The Changing Geography of Agricultural Production,” explored the factors driving changes in where and how agricultural commodities are produced, disruptions that are leading to further geographical differences, and the role of investments and farm policy in the years ahead.

I had the honor of joining as a panelist with representatives from Farmer Mac and Rabo AgriFinance, where I shared EDF’s perspective on how climate change affects agricultural production and finance. Climate impacts on agriculture, from catastrophic weather events to temperature and rainfall variability, increase risks for farmers and their financial partners. This pattern of increasing disruption directly affects food availability, prices, and ultimately, what ends up on our plates. As one of my fellow panelists noted, “The one certainty in agriculture today is volatility.” Read More »

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Agricultural banks expect climate change to pose financial risks. Here are five strategies to help them adapt.

By / Bio / Published: March 21, 2023

Climate change is projected to impact agricultural production worldwide, and 87% of agricultural finance institutions in a recent survey expect it to present risks to their business. Meanwhile, only 24% significantly factor climate change into their decision-making processes.

A new guide from EDF and Deloitte offers five strategies for agricultural finance institutions to manage climate risks and act on climate opportunities. These five strategies integrate climate into agricultural finance institutions’ existing risk frameworks and take a proactive approach to help farmers and ranchers adapt to climate change:

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Major banks are setting climate targets. What the agricultural finance sector needs to know.

By / Bio / Published: December 14, 2022

Many major banks have set targets to reduce financed greenhouse gas emissions in their loan portfolios to zero by 2050 (also known as net zero targets). They join a growing movement of companies throughout the agricultural supply chain to set ambitious targets to reach net zero by 2050 to prevent the most severe impacts from climate change.

The Banking for Impact on Climate in Agriculture (B4ICA) initiative recently published “An introductory guide for net zero target setting for farm-based agricultural emissions” that shares best practices for banks to set net zero GHG emissions targets for their agricultural loan portfolios. The guidance helps banks setting agricultural sector emissions reduction targets as part of their commitments to the Net Zero Banking Alliance ­— an alliance of 122 banks representing 40% of global bank assets that have committed to aligning their assets with net zero GHG emissions by 2050 or sooner. Read More »

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Fostering innovative finance in the agriculture value chain

By / Bio / Twitter profile / Published: February 4, 2022

Companies throughout the agriculture value chain have set commitments to reduce the environmental impacts of agricultural production. They’re now engaged in the hard work to achieve those goals by developing programs to increase farmer adoption of conservation practices.

As value chain sustainability programs mature, there is increasing attention on the financial barriers to the implementation of sustainable agriculture at scale — and questions about how financial innovation can overcome those barriers.

A recently released report, Financial Innovations to Accelerate Sustainable Agriculture: Blueprints for the Value Chain, provides companies throughout the food and agriculture sector with 12 tangible innovative finance mechanisms and value-added incentive strategies to support U.S. farmers in scaling conservation practices and delivering sustainable outcomes. The blueprints encompass innovations for transition risk sharing, pay for performance, leasing incentives and more.

Here are three key insights for those looking to take action. Read More »

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Banks take major step to turn climate commitments into action for global agriculture sector

By / Bio / Twitter profile / Published: November 8, 2021

Today at COP26, the World Business Council for Sustainable Development announced the Banking for Impact on Climate in Agriculture (B4ICA) initiative in partnership with EDF, the United Nations Environment Programme Finance Initiative and the Partnership for Carbon Accounting Financials.

Banks representing over 40% of global banking assets have already committed to aligning their portfolios with net zero emissions by 2050.

A major theme of this COP — the international climate change conference — is the urgent need to transition from commitments to action.

Action is needed to protect the agriculture sector from climate change, as farmers around the world are exposed to increasingly volatile weather that threatens global food security and rural livelihoods. At the same time, the sector must reduce its own greenhouse gas emissions, particularly potent methane and nitrous oxide emissions.

Fortunately, farms have the potential to reduce emissions, sequester carbon and build resilience — but farmers need support to make change at the scale and pace required to avoid major losses. Read More »

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