{"id":10049,"date":"2018-11-29T15:32:36","date_gmt":"2018-11-29T20:32:36","guid":{"rendered":"http:\/\/blogs.edf.org\/growingreturns\/?p=10049"},"modified":"2025-06-10T16:44:49","modified_gmt":"2025-06-10T20:44:49","slug":"farmers-business-partners-conservation-financial-benefits","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/growingreturns\/2018\/11\/29\/farmers-business-partners-conservation-financial-benefits\/","title":{"rendered":"How farmers\u2019 business partners benefit from conservation"},"content":{"rendered":"

Most efforts to advance agricultural conservation focus on the farmer \u2013 with good reason, since conservation practice adoption is the direct result of farmers\u2019 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.<\/p>\n

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\u2019s in their financial interest to do so. Here\u2019s why.<\/p>\n

The financial value of conservation on the farm<\/strong><\/p>\n

With farm income down more than 50 percent over the last five years, farmers are examining every line item to identify where they can make cuts. The good news is that many cost-saving measures<\/a> also have environmental benefits.<\/p>\n

That was one conclusion of a report published earlier this year by EDF and agriculture accounting firm K\u00b7Coe Isom AgKnowledge entitled Farm finance and conservation: How stewardship generates value for farmers, lenders, insurers and landowners<\/em><\/a>.<\/p>\n

The report features case studies of three Midwestern grain farmers\u2019 budgets and experiences with conservation adoption, as well as a comparative analysis of similar operations. The farmers profiled all attributed lower costs of production to conservation adoption.<\/p>\n

Cost reductions came largely from the equipment, fuel and labor savings of no-till, but efficient fertilizer management also provided savings. Other conservation benefits accrue over the longer-term.<\/p>\n

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One of the farmers profiled in the report, Justin Knopf<\/a> of Kansas, also adopted a diverse crop rotation including perennial alfalfa. The diverse rotation helps him spread out production costs and risks, so if the price or yield of one crop falls, other crops can stabilize his budget overall.<\/figcaption><\/figure>\n

The farmers cited increased yield resilience as conservation practices increased their soil\u2019s ability to absorb and retain water, which lessened the yield impacts of excessive or insufficient rainfall. In addition, the farmers pointed to the benefits of soil health and conservation to retain or increase the productive capacity and value of farmland.<\/p>\n

Financial value beyond the farm<\/strong><\/p>\n

How does this on-farm financial value deliver benefits to agricultural lenders, crop insurers and landowners?<\/p>\n

Read the Farm Finance Report<\/span><\/a><\/div>\n