The Responsible Commodities Facility, unveiled at the London Stock Exchange, plans to provide low-interest credit lines to Brazilian soy and corn farmers who commit to using degraded pasture and avoid clearing forests and native grassland for agriculture. For farmers, the initiative will offer an important complement to official credit lines.
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 program at the U.S. Department of Agriculture does just that.
As the investment community in the United States, particularly within the fields of sustainable, responsible, and impact investing, shows an increasing appetite for investing in sustainable agriculture and food systems across asset classes, a subset of investors is demonstrating growing interest in financing not simply “sustainable” agriculture but agriculture that is deemed explicitly “regenerative.”
As food companies look to lower supply chain risk and reduce their ecological footprint, new strategies are emerging to increase adoption of sustainability practices among farmers. Several companies have begun using long-term contracts — purchase agreements guaranteeing offtake beyond an annual time horizon — to stabilize costs and allow both grower and buyer to plan further into the future.
In just one week, farmers have pledged more than 700,000 acres to Indigo Ag’s new carbon sequestration initiative. The program, which launched on June 12, will pay farmers to use regenerative farming practices and remove carbon from the atmosphere.
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.
Agriculture Secretary Sonny Perdue expressed support for carbon markets for farmers during a meeting, Rep. Chellie Pingree said on Monday. An upcoming agriculture appropriations bill will likely include language that urges USDA to research the possibility of such markets, added the Maine Democrat.
A large investment opportunity is emerging in sustainable aquaculture, and The Nature Conservancy has partnered with Encourage Capital to create a guide that reveals how investors can help meet the demand for sustainable seafood while achieving competitive financial returns.
Impact Capital Managers (ICM), a network of impact-focused venture capital and private equity funds, is out to disprove the notion that investing for impact requires sacrificing financial return. On the contrary, ICM members aim to match or exceed the overall performance of the market, and they believe social and environmental objectives contribute to their success.