New Field to Market Report Recommends Opportunities for Financial Innovations to Accelerate Sustainable Agriculture

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Proposed by From field to market: the Alliance for Sustainable Agriculture

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Jan. 31, 2022 /CSRwire/ — From Field to Market: The Alliance for Sustainable Agriculture released a new report today, Financial Innovations to Accelerate Sustainable Agriculture: Value Chain Plans, highlighting the need for innovative financial mechanisms and incentive strategies to accelerate the transition to sustainable agriculture. The report provides 12 concrete plans and case studies that value chain actors can follow as they seek to catalyze lasting, systemic change in American agriculture.

Written by members of the Field to Market Innovative Finance Workgroup, the report shares concrete strategies for overcoming key barriers to adoption of conservation practices by farmers, moving beyond early adopters, and addressing the agronomic and financial risks faced by farmers. farmers face when transitioning to the practices needed for a resilient food and agricultural system.

“As supply chain sustainability efforts to improve environmental outcomes along the supply chain continue to evolve, the economic barriers to implementing sustainable agriculture at scale are driving a growing attention,” said Scott Herndon, president of Field to Market. “The work of the Field to Market Innovative Finance Task Force continues to equip our members across the value chain with innovative and effective strategies to drive investment, collaboration and action to drive a more resilient agricultural system.”

The report details recommendations for financial innovations, including:

  1. Blended financing approaches that combine public and corporate funds to support improved agricultural practices and increase the supply of sustainably produced crops.
  2. Sustainable finance mechanisms, including sustainable bonds and loans and agricultural loan incentives, that can enable businesses and farmers to access favorable financing terms for sustainable projects and practices.
  3. Transition risk sharing opportunities, including sustainability-related crop guarantees and crop insurance endorsements, which target the specific risks associated with adopting new conservation practices.
  4. Performance pay programs that directly compensate farmers for quantified environmental benefits.
  5. Rental incentives that allow farmers and landowners to share the costs and benefits of conservation investments over time.

“Farmers who adopt sustainable practices generate real value, but they also face barriers when transitioning to new practices,” says Maggie Monast, senior director of climate-smart agriculture at Environmental Defense. Fund and co-chair of the Innovative Finance Workgroup. “This report provides actionable insights for the value chain on how public and private financial sources of capital and the right mix of incentives can be used to accelerate conservation adoption at scale.”

“Farmers and pastoralists need voluntary market-based solutions to advance their sustainability work and build resilience. These solutions are just the start of a critical conversation for American agriculture,” said Shelby Myers, economist at the Farm Bureau Federation and co-chair of the Innovative Finance Workgroup. “We hope these plans will spark the exploration of new incentive concepts and financial innovations to share the risk and reward of transition.”

The report concludes with questions to guide the action and implementation plans of companies interested in harnessing innovative financial incentives to accelerate sustainable results, as well as three key recommendations:

  1. Engage existing financial partners along the value chain in sustainability discussions.
  2. Experiment and pilot innovative financial mechanisms and diversified incentive strategies adapted to the needs, challenges and motivations of farmers.
  3. Share results to drive adoption and innovation across the industry.

“There is a critical need ahead of all of us to unlock the next round of innovation to ensure we continue to deliver equal value for farmers and nature,” said Brandon Hunnicutt, president of Field to Market. “This research and discovery by Field to Market’s Innovative Finance Task Force has identified a dozen financial strategies that merit greater focus, resources, and collective value action to collectively pursue solutions that create gains. for farmers, businesses, society and our planet.”

Interested stakeholders are invited to register to participate in a webinar on Thursday, February 10 at 1 p.m. ET to further explore the report’s key findings and plans.

Download the full report at bit.ly/blu3prnt.

ABOUT FIELD TO MARKET

From field to market: the Alliance for Sustainable Agriculture brings together a diverse group of producer organisations; agro-industries; food, beverage, restaurant and retail businesses; conservation groups; universities and public sector partners to focus on defining, measuring and promoting the sustainability of food, fiber and fuel production. Field to Market is made up of nearly 150 members representing all facets of the U.S. agricultural supply chain, with members employing more than 5 million people and representing combined revenues totaling more than $1.5 trillion. . For more information, visit www.fieldtomarket.org and follow us on Twitter at twitter.com/FieldtoMarket.

ABOUT THE FIELD TO MARKET INNOVATIVE FINANCE TASKFORCE

In January 2021, the Field to Market Board of Directors created the Innovative Finance Working Group, comprised of 20 representatives from Field to Market’s five membership sectors. The task force explores value-added incentive strategies and funding mechanisms to help US farmers scale conservation practices and achieve sustainable results.

CONTACT

Carter Purcell, Communications Manager, cpurcell@fieldtomarket.org, (202) 297-8345

From field to market: the logo of the Alliance for Sustainable Agriculture

From field to market: the Alliance for Sustainable Agriculture

From field to market: the Alliance for Sustainable Agriculture

From Field to Market: The Alliance for Sustainable Agriculture is a leading multi-stakeholder initiative to unite the agricultural supply chain to define, measure and advance the sustainability of food, fiber and fuel production in United States. We bring together a diverse group of producer organizations; agro-industries; food, beverage, restaurant and retail businesses; conservation groups; the universities; and public sector partners to create opportunities throughout the agricultural supply chain for continuous improvements in productivity, environmental quality and human well-being. With an estimated global population of over 9 billion by 2050, the entire value chain must work together to lay the foundation for a more sustainable future in an efficient and responsible manner. From farm to retail counter and restaurant, the challenge of producing enough food, fiber and fuel for a rapidly growing population, while conserving our planet’s natural resources, has become increasingly complex. . The nature of this challenge requires an unparalleled level of transparency and collaboration. By uniting the agricultural supply chain and key stakeholders around a common measurement framework, Field to Market seeks to drive continuous improvement in the sustainability of staple crop production.

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