Forging the Next Chapter in Private Sector Climate and Sustainability Efforts in U.S. Agriculture
April 19, 2021For nearly fifteen years, Field to Market has been at the forefront of establishing science-based and outcomes-based sustainability metrics for U.S. commodity crop production. While the sustainability space has been in a state of constant growth and evolution for more than a decade, the recent heightened interested in voluntary ecosystem service markets is unprecedented.
In the early days of supply chain sustainability initiatives, growers often expressed frustration with a perceived lack of shared value or tangible incentives, which has been a barrier to uptake and scalability. Now, there are new ag carbon programs announced nearly every week, creating expectations around revenue opportunities for farmers along with the potential for significant environmental benefits.
Today marks the first day of U.S. Climate Action Week, when world leaders will convene for the Leaders Summit on Climate and our industry joins other sectors in surfacing solutions in support of bold climate action. As part of this conversation, I published an op-ed in Agri-Pulse about six key success factors for private sector climate and sustainability efforts in U.S. agriculture. As the industry experiences a rapid proliferation of carbon markets, Field to Market is embarking on an effort to help our members navigate an increasingly complex space.
Effective immediately, our various committees and workgroups will begin addressing several outstanding questions at the intersection of traditional supply chain sustainability programs and emerging ecosystem service markets, as well as exploring factors that will be key to the success of these initiatives. Our upcoming Biannual Plenary and General Assembly Meeting on June 23-34 will also examine many of the following themes:
- While expectations continue to grow around the potential for robust ecosystem service markets and outcomes-based payment programs, there is no silver bullet approach to incentivizing and scaling sustainable, regenerative or climate-smart agriculture. Voluntary ecosystem service markets are an increasingly important tool to support and reward farmers in delivering improved environmental outcomes. Likewise, the supply chain continues to implement strategies to support farmers in managing the agronomic and financial risk of transitioning to new practices, exploring mechanisms such as cost-share arrangements, lending and insurance products, technical assistance, market access and price premiums. In January, Field to Market launched our Innovative Finance Workgroup to study these options and plans to publish a roadmap to guide organizations across the value chain in implementing effective approaches that best fit their unique circumstances. In addition, federal and state governments will also continue to provide significant public support through traditional conservation programs. Within the next Farm Bill, policymakers will need to explore how public and private sector efforts can align to deliver maximum impact. Initiatives under the Regional Conservation Partnership Program offer many successful examples.
. - Pre-competitive metrics are now more important than ever. The proliferation of carbon programs can be a real benefit to the industry as market providers compete on value and service to growers while accelerating innovation. However, if we hope to build confidence in the environmental outcomes, we ultimately need convergence around a finite set of industry-accepted approaches to measurement. If each company measures greenhouse gas emissions, carbon sequestration, and water quality impacts differently, this will unnecessarily obscure an already complex space while risking our industry’s credibility with key stakeholders and the broader public. Field to Market’s multi-stakeholder Metrics Committee has researched and implemented environmental tools and models for many years, developing the industry’s most widely accepted sustainability measurement framework. These metrics have also been integrated into a number of third-party farm management software solutions, which has helped to standardize sustainability data collection and reporting. Field to Market will continue to serve as a key resource to ensure that pre-competitive, best available science remains accessible to the industry.
. - With the proliferation of voluntary ecosystem service markets across U.S. agriculture, there is an urgent need to develop pre-competitive protocols or guidance to avoid double counting or claiming. There are already examples of farmers being approached by multiple carbon programs or supply chain sustainability initiatives without clear guidance on where participation is mutually exclusive. In some instances, stacking benefits will be encouraged, while other programs will apply strict financial additionality tests to determine payment eligibility and carbon asset allocation. The intersection of Scope 1 and Scope 3 programs also remains somewhat murky, with some companies hoping to sell fungible carbon credits while others need to count reductions toward corporate greenhouse gas goals within their own supply chains. The integrity of the entire system depends upon an assurance that outcomes are real and permanent and that the same reductions or improvements from any farm are not inappropriately counted by more than one company. It is unfair to leave this responsibility and liability entirely on the shoulders of farmers through the fine print of carbon contracts. Pre-competitive agreements across ecosystem service markets and supply chain sustainability programs are critically important to ensure the credibility of these efforts. Field to Market’s Verification Committee is currently taking steps to develop a navigational tool for how Scope 3 assets generated from Continuous Improvement Accelerator projects can adhere to existing protocols and industry standards.
. - The appeal of market-based programs for farmers and supply chain companies alike will ultimately be determined by their ability to efficiently deliver environmental outcomes at a price point that offers the greatest return on investment for farmers. Ecosystem service markets are working to rapidly reduce the cost of measurement, reporting and verification while ensuring the results are credible. Meanwhile, some producers may gravitate to cost-share arrangements or other kinds of upfront assistance from supply chain partners rather than entering into multi-year carbon contracts. Fundamentally, supply chain companies will need to determine which mix of incentive mechanisms and at what cost will help to achieve their environmental goals at scale. Field to Market’s Innovative Finance Workgroup is taking steps to document the relative cost per acre of various incentive mechanisms wherever such data exists in the public domain.
. - Carbon is not a proxy for all environmental indicators. While many of the agronomic practices that increase carbon sequestration also deliver significant environmental co-benefits, the industry must guard against urging farmers to manage for one single outcome. This singular focus also misses an opportunity to reward producers for multiple ecosystem services. Field to Market has always encouraged a systems approach, evaluating tradeoffs and considering locally relevant natural resource concerns such as water quality and biodiversity. Companies across the food and agriculture value chain will face public scrutiny and backlash if soil carbon sequestration is valued while other key environmental outcomes decline.
. - Last but certainly not least, ecosystem service markets and supply chain sustainability programs must be farmer friendly. There is already significant confusion in the countryside around eligibility requirements, payment and contract terms, and data ownership and privacy considerations. Agriculture organizations and especially commodity groups are in an important position to help demystify this space for farmers once the terms of engagement are clear. In the coming months, Field to Market’s Education and Outreach Committee will partner with relevant organizations to develop useful information to help farmers and supply chain companies effectively navigate these opportunities.
To be clear, Field to Market has no intention of establishing its own ecosystem service market, and instead, we look forward to partnering with many existing and emerging programs to maximize impact. At the same time, we also believe it is important to use our pre-competitive convening platform to help our members collectively engage, share learnings and advocate for a future where carbon markets and supply chain sustainability initiatives work together in concert. Between our standing committees, workgroups, and upcoming biannual plenary meeting, we hope to deepen our members’ understanding of these issues over the next several months.
This is an exciting and unprecedented time for agricultural sustainability efforts due to the increased level of private sector interest and investment. Now more than ever, I am confident that our industry can meet our ambitious climate and sustainability goals, enhance farmer livelihoods and build an even more resilient and productive agricultural system.
Sincerely,
Rod Snyder
President
Field to Market
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.
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United Soybean Board Backs Fieldprint Calculator
Jan 15, 2010Everybody wins when farmers keep score on sustainability. The United Soybean Board (USB) and soybean checkoff fund tools... Read more ›
Keystone Addresses Crowd at AFBF Annual Meeting
Jan 11, 2010SEATTLE – A major policy question for the 21st century is how to address the food, fuel and fiber needs of a world who... Read more ›
New Online Calculator Helps Growers Analyze Natura...
Feb 26, 2009DALLAS – Farmers will now be able to analyze their natural resource use and key crop production inputs using a new onl... Read more ›
Diverse Group Releases First-of-its-Kind Report Me...
Jan 12, 2009A first-of-its-kind report released today creates a framework for measuring agriculture sustainability. Findings show cr... Read more ›