Field to Market Enters Agreement With USDA To Begin Work on Partnerships for Climate-Smart Commodities Grant

WASHINGTON, December 18, 2023 /3BL/ - Today, Field to Market: The Alliance for Sustainable Agriculture® announced that it has entered into an agreement with the U.S. Department of Agriculture (USDA) to begin work on Field to Market’s Climate-Smart Agriculture Innovative Finance Initiative (The Initiative), effective December 9, 2023. 

The Initiative, which is part of USDA’s Partnerships for Climate-Smart Commodities Grant Program, will use innovative finance mechanisms to accelerate climate-smart practice uptake by farmers, leveraging private sector demand to strengthen markets for climate-smart commodities. This project will use $70M in grant funds from USDA, combined with $66M in matching funds and $40M in leveraged funds from industry support, to reach 10.6M acres, provide 2.79M metric tons in GHG reductions, and provide $81M to producers. 

“We are incredibly grateful to both the USDA and our partners for their support of The Initiative,” remarks Field to Market President Scott Herndon. “By pairing innovative finance mechanisms with technical assistance, our project will support producers in adopting or expanding climate-smart practices while increasing the supply of climate-smart commodities for the supply chain.” 

The Initiative builds upon the work of Field to Market’s Innovative Finance Committee, which published the report Financial Innovations to Accelerate Sustainable Agriculture: Blueprints for the Value Chain in 2022. 

A portion of the awarded funds will specifically support Black and Native producers, assisting historically underserved producers in adopting climate-smart practices through key partnerships with the Federation of Southern Cooperatives/Land Assistance Fund, the Intertribal Agriculture Council and Akiptan. 

The Initiative will be split into 8 projects with various partners:

• Land Assistance Fund: The Federation of Southern Cooperatives/Land Assistance Fund (Federation) will target outreach for climate-smart operating loans to members of the Federation.
• Regenerative Finance Model: Akiptan will offer climate-smart operating loans, which will target farmers involved in Native agriculture. The Intertribal Agriculture Council will use funds from the grant to provide education, outreach, marketing, and technical assistance to support the model.
• Regenerative Agriculture Fund I: The Regenerative Agriculture Fund (RAF) is an annual farm operating line of credit offered by Farmers Business Network. Eligible farmers earn a practice-based incentive equivalent to a 0.5% discount from their base rate on the interest paid on the line of credit, through the full and timely payment of the line of credit, for achieving environmental standards for nutrient management and soil conservation. As part of this program, PepsiCo will pay ADM for the procurement of climate-smart commodities enrolled in their climate-smart program. Farmers will be able to enroll in RAF, the cost-share marketing incentive, or both.
• Regenerative Agriculture Fund II: The Regenerative Agriculture Fund (RAF) is an annual farm operating line of credit offered by Farmers Business Network. Eligible farmers will earn a practice-based incentive equivalent to a 0.5% discount from their base rate on the interest paid on the line of credit, through the full and timely payment of the line of credit, for achieving environmental standards for nutrient management and soil conservation.
• Climate Smart Practice Linked Incentive: Illinois Corn’s Precision Conservation Management (PCM) program will offer a climate-smart incentive to farmers for cover crops, reduced-till, no-till, strip-till, reduction in nitrogen use, and various practice enhancement options. Matching funds from PepsiCo will be used to incentivize farmers.
• Climate Smart Practice Linked Crop Plans (CSPLCP): The Crop Plan is a performance product that recommends practices, and in some cases products, including the implementation of cover crops, low- or no-till, efficient nutrient management, and/or enhanced efficiency fertilizers that help achieve climate-smart objectives. The Crop Plan assures growers that their acres will meet or beat past yield performance. If yields fall below the established performance expectations, the grower can claim a warranty payment, offered by Growers Edge, to cover a portion of the performance reductions.
  • CSPLCP I: In addition to a yield warranty offered by Growers Edge, Practical Farmers of Iowa will offer a marketing incentive paid by PepsiCo for farmers implementing cover crops, reduced till, no-till, strip-till, and nitrogen reduction.
  • CSPLCP II: In addition to the yield warranty offered by Growers Edge, Coop Elevator will offer an incentive paid by Mondelēz International for farmers that will be implementing cover crops, reduced or no-till, and nutrient management.
  • CSPLCP III: In addition to the yield warranty offered by Growers Edge, Nutrien Ag Solutions will provide the funds for a performance-based incentive offering to farmers utilizing nitrogen reduction.

“Agriculture is core to our business and as part of our ambition to help transform the global food system, we are working to improve climate resilience with farmers,” says Margaret Henry, Vice President of Sustainable Agriculture at PepsiCo. “We are proud to help provide match funding and bring this public-private partnership to life through our mutual interest in supporting farmers in their transition to regenerative practices and keeping rural farming communities thriving.” 

“At Nutrien Ag Solutions we are passionate about equipping growers with the tools they need to continue to be profitable and productive now and into the future. Agricultural producers are key to meeting the goals we have set for a decarbonized future, and we are committed to supporting their success,” says Ryan Locke, Director of Sustainability Partnerships, Sustainable Ag, at Nutrien Ag Solutions. “Our work in sustainability continues to drive positive outcomes that will support a strong and climate resilient agriculture supply chain. We are excited to provide support to the innovative work happening within Field to Market’s Climate-Smart grant. Through this collaboration and our other projects, we will continue to enable producers to continue their enduring legacy of environmental stewardship as they feed, fuel, and clothe the world.” 

Other project partners include the Environmental Defense Fund, National Association of Conservation Districts, and Farm Credit Council. 

“The transition to climate-smart agricultural practices requires financial investment and a learning curve to realize benefits,” says Field to Market Chair Brandon Hunnicutt. “As a producer myself, I know that these practices cannot be taken by the producer alone. Through The Initiative, producers will receive both financial and technical assistance on their journey, creating lasting change in the world of climate-smart agriculture.” 

More information will be shared soon, including a formal webpage on Field to Market’s website that provides more details on The Initiative and its associated projects. Please reach out to Lainey Wolf, Director of Grant Programs, at lwolf@fieldtomarket.org with questions about the grant.

ABOUT FIELD TO MARKET 
Field to Market: The Alliance for Sustainable Agriculture® brings together a diverse group of grower organizations; agribusinesses; food, feed, beverage, restaurant, and retail companies; conservation groups; universities and public sector partners to focus on defining, measuring, and advancing the sustainability of food, feed, fiber, and fuel production. Field to Market comprises around 200 members representing all facets of the U.S. agricultural supply chain, with members employing more than 5 million people and representing combined revenues totaling over $1.5 trillion. For more information, visit www.fieldtomarket.org.