Co-authored by Pinion
The use and production of fertilizer in agriculture is a significant contributor to greenhouse gas emissions and a major cause of pollution in the nation’s rivers and lakes. Agriculture is the largest global source of nitrogen pollution, and annual damages from nitrogen pollution are estimated to exceed $200 billion in the US. Enhancing nitrogen use efficiency and optimizing application techniques is essential to reducing these impacts.
Low angle view of young corn plants in a field after the rain
A new survey of agricultural lenders in the upper Midwest reveals important insights about their perceptions and support for farmers’ conservation efforts. As the first of its kind, the survey can inform agricultural lending institutions’ climate and sustainability strategy development.
Farmers rely on agricultural lending institutions for loans to cover equipment, land and operating expenses. In particular, loan officers at these institutions hold relationships with farmers and are often seen as trusted advisers and sources of information. Their perspectives and knowledge of conservation agriculture can significantly influence farmers’ progress in adopting conservation practices.
During the summer of 2023, Kansas endured a historic heat wave with temperatures soaring above 110°F in some areas. As climate change continues to intensify, the frequency and severity of extreme heat are projected to increase. Are Kansas farmers at risk of losing money in the face of these extreme growing conditions? A new study by EDF, Kansas State University and Cornell University aimed to answer this question by examining the impacts of extreme heat over the last four decades.
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.
In January 2022, global farmer-to-farmer network and ag tech company Farmers Business Network®, launched a new rebate program for farm operating loans. The Regenerative Agriculture Finance Operating Line program includes a 0.5% interest rate rebate for farmers who achieve climate and water quality benchmarks established by Environmental Defense Fund. Both farmers who already meet the benchmarks, as well as farmers who improve practices to do so, are eligible.
The $25-million pilot fund filled up quickly, with 48 farmers enrolled and a growing waitlist to participate in an expanded fund. With the initial pilot underway, FBN plans to scale the fund to $500 million over the next three years and access public markets to securitize and sell these loans to investors seeking liquid, environmentally friendly investments.
Over the first year of the program, we are sharing what we are learning with others in the agriculture sector. EDF had the chance to sit down with two participating farmers about their experiences — Joel Uthe, operator of Uthe Farm in Chariton, Iowa, and David Iverson, operator of Iverson Farm in Astoria, South Dakota. Read More
Farms across North Carolina are experiencing more variable and extreme weather associated with climate change, including hotter nights and more frequent and severe rainfall. Small farms are adapting to these changes by adopting climate-resilient practices that help buffer weather extremes and improve soil health.
Measuring and communicating the financial costs and benefits of these practices is important to help more farmers adopt them profitably and find financial support for the transition. Cooperative extension agents — small farms’ closest technical advisers — will increasingly need to inform farmers about climate-resilient practices and their financial impacts.
Environmental Defense Fund and North Carolina Agricultural and Technical State University Cooperative Extension collaborated with three small North Carolina farms to measure the financial impacts of adopting reduced tillage, high tunnels and cover crops. The results are summarized in a new report and set of case studies. Read More
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
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.
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.
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