Growing Returns

Selected tag(s): farm finance

A new guide for farmers to boost profits through conservation

By / Bio / Twitter profile / Published: July 15, 2019

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

By / Bio / Twitter profile / Published: May 23, 2019

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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How farmers’ business partners benefit from conservation

By / Bio / Twitter profile / Published: November 29, 2018

Most efforts to advance agricultural conservation focus on the farmer – with good reason, since conservation practice adoption is the direct result of farmers’ decisions, time and resources. They also focus, of course, on the environment, as the need to improve water quality and reduce greenhouse gas emissions from agriculture grows.

But conservation efforts must also recognize the relationships between farmers and their business partners. Agricultural lenders, crop insurers and landowners are critical to achieving widespread conservation adoption, and it’s in their financial interest to do so. Here’s why. Read More »

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Farmers open their books to show financial impact of conservation

By / Bio / Twitter profile / Published: April 17, 2018

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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3 steps to close the conservation data gap between farmers and investors

By / Bio / Twitter profile / Published: December 6, 2017
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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