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HomeFarm BusinessConsumers talk regenerative ag; farmers listen
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CONSUMERS TALK REGENERATIVE AG; FARMERS LISTEN
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REGENERATIVE AG: Consumers are talking about soil health, but they use many
different terms. One seems to be leading the trend — regenerative agriculture.
As companies work to meet climate-smart goals, farmers should capitalize on the
conversation.
Nov 11, 2022
Suggested Event
Farm Futures Business Summit - Ag Finance Boot Camp
Jan 18, 2023 to Jan 20, 2023
Consumers associate terms such as climate-smart, regenerative agriculture and
crop rotation with soil health, according to a survey by Spoonshot. With so many
words to choose from, it begs the question — which one will gain farmers more
money in the marketplace?
With the new USDA Climate-Smart Commodity Programs, there is a push for
developing markets where farmers find incentives. Still, USDA has not committed
to a “brand” per se of “Climate-Smart Commodity.”
In a recent visit with Rob Myers, director of the Center for Regenerative
Agriculture at the University of Missouri, about the Climate-Smart Commodity
Program and potential moneymaking markets for farmers, he says it is likely to
be realized more on how the practices are packaged rather than a brand name. He
offered examples for both crop and livestock farmers.
“If it's a soybean farmer that is using cover crops, and then delivering some
screening to a facility that's producing soybean biodiesel, there may be an
opportunity for that biodiesel to get either a higher price because it's been
grown with the cover crops, or maybe to get into a different market than it was
earlier because it's got a better carbon score,” he explains. But, he adds, it
might just be labeled as low-carbon biodiesel.
The climate-smart packaging is a little less clear on the beef side. Some of the
beef farmers involved in the USDA climate-smart projects may be marketing their
beef like Missouri cattlemen, under the “grass-fed” label. Myers says this type
of marketing may simply expand. It will be more of farmers finding institutional
buyers, such as a grocery store chain that needs to offset its carbon footprint.
BIG REGENERATIVE GOALS
Companies will also have their say in labeling and incentives for the
regenerative agriculture movement. Many are making the push and requiring
farming practices that meet their company environment, social and governance, or
ESG, goals. Here are a few:
* General Mills plans to convert 1 million acres of land to regenerative ag
practices by 2030.
* Nestle is investing more than $1 billion pounds in the next five years to
advance regenerative ag across its network.
* PepsiCo will deploy regenerative farming practices across 7 million acres and
sustainably source 100% of ingredients by 2030.
* Walmart partnered with Midwest Row Crop Collaborative to work with 30,000
farming operations to advance regenerative farming practices across 30
million acres in the Midwest.
But consumers may be the drivers behind company climate-smart word choice, and
regenerative seems to resonate with them.
CONSUMER CHATTER AROUND FOOD
According to Spoonshot, consumer conversations around soil health as it relates
to food production focuses on the following:
Consumers are becoming more ag literate every day — whether on their own or
through companies. Either way, they are leveraging it to make food purchases.
WHERE FARMERS FIT IN REGENERATIVE MARKETPLACE
The upside to the regenerative agriculture movement is, as farmers, you are at
the very core. Perhaps it is time you step into the driver seat.
The way you farm matters not only for feeding the world, but also to companies
and consumers. Now is the time to leverage it.
Do research on how companies are entering the climate-smart arena. Find where
your operation fits their needs, and then start a conversation. While many
biodiversity and climate-smart incentives are out there, I’d suggest looking at
individual company pages — perhaps those you already do business with.
For instance, I did not realize that The North Face is working with Indigo Ag,
offering cotton farmers a premium on their product as well as carbon credits if
they deploy regenerative agriculture practices that store carbon and restore
soil health. The company considers it less conventional farming and more carbon
farming.
With companies continuing to look for ways to meet ESG goals, this seems like
one area where farmers can drive the conversation, fill the need and realize
financial benefits.
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