Land Core Newsletter - June 2021
Dear Friends and Colleagues:
We continue to see divergent stakeholders across the value chain recognizing the essential, positive role our agricultural producers will play in coming climate mitigation strategies, as evidenced by the passage of the bipartisan Growing Climate Solutions Act (GCSA) (S.1251 / H.R.2820) last Thursday in the Senate (the bill has now moved to the House).
The GCSA would create a certification program at USDA to reduce technical entry barriers to farmer and forest landowner participation in voluntary carbon and other ecosystem services markets.
While soil-based carbon markets may hold significant promise in the coming years, some serious challenges still need to be overcome (measurement, reporting and verification (MRV), permanence, equity, pricing, etc.), but beyond this, we also need to acknowledge that these markets are by nature pay-for-performance, requiring the producer to take the upfront risk of transitioning their operations in order to access their potential.
We see the risk-mitigation value of soil health as the other half of the puzzle. By quantifying the risk-mitigating benefits of soil health practices (to reduce the risk to flood and drought, as well as pest, fire, etc.), agricultural banks and insurers can realize the de-risking value of these practices while creating incentives for farmers to implement them.
This could unlock the capital needed to fund the transition to regenerative practices upfront, while addressing some of the persistent issues with equity and access to incentives that carbon markets are ill-suited to address.
We have long advocated for risk assessment through the lens of soil health across both private and public spheres, including through several recent opportunities to advise senior staff of the U.S. Department of Agriculture on risk-informed pricing as a market-based path forward to pay for the transition to soil health practice adoption that will, over time, unlock the potential of carbon markets.
Read our policy memo to better understand risk-mitigation as a pathway to carbon markets:
Sincerely,
The Land Core Team
Risk Model Press & Updates
We’re very grateful for your enthusiastic responses following the announcement of our partnership with Compeer Financial (the third-largest Farm Credit System cooperative over $25 billion under management) earlier this month.
In a recent Farm Progress article, Heidi Bubela, Director of Quantitative Analysis at Compeer, called the partnership an investment in evidence-based research that will help quantify the benefits of soil conservation practices on farms across the Upper Midwest. “We want our clients to succeed and also help agriculture in impacting climate change” she shared. “We think soil health practices could help them manage risk.”
In the Press:
Farm Progress (Wisconsin Agriculturalist - WI, The Farmer - MN, Prairie Farmer - IL): Compeer Financial, Land Core partner for soil health
Midwest Farm Report: Compeer And Land Core Partner
Agri-Vew: Business News: Companies address soil-health economic risks
Morning Ag Clips: Compeer Joins Land Core Initiative
Compeer: Compeer Joins Land Core Initiative
Please reach out to Aria McLauchlan for Risk Model partnership inquiries and funding support.
Policy Update & Call to Action
USDA Supply Chains Comments:
Last Monday, Land Core submitted comments to USDA regarding the Executive Order on food and ag supply chains. Our comments put soil health at the core of on-farm resilience, which in turn forms the basis of stable and reliable agricultural supply chains; and recommend creating new markets, developing risk-appropriate pricing of loans and insurance, and expanding education and training as levers to increase the economic value of adopting soil health practices.
Read our full comments to USDA, and find more Land Core-submitted comments and policy memos here.
Tracking Activity in Congress:
In addition to the Growing Climate Solutions Act, we’re continuing to see movement on several other bills in Congress. Sign up for our Bill Tracker Alerts today to learn which bills in our Federal Soil Health Bill Tracker have new cosponsors, have become bicameral or bipartisan, and more. We also provide analysis on activity in Congress (i.e. last week’s House Ag Committee "Hearing to Review the Efficacy of the Farm Safety Net”).
Ask for a Fair Share for Farmers!
As we have shared with you previously, Land Core is among the 450+ organizations calling for $200 billion (out of a $2.2 trillion bill - ie. 9%) in funding for resilient agriculture in the American Jobs Plan. The bill has not been finalized yet, but the current spending ask for agriculture is not even 0.5% of the total.
Healthy soils and resilient agriculture are as important as roads and bridges for our future! We must take this opportunity to demand a fair share for agriculture. Please call your representatives and ask for $200 billion, or a minimum of 9% of the total spending, to help build a more resilient, soil health centered, climate smart agriculture!
What We're Reading
What does the executive order on climate-related risk mean for agricultural finance?
Implications of the federal executive order on climate-related financial risk for USDA lending policies and programs, as well as private agricultural lenders and insurers.
June 14, 2021 | By: Maggie Monast, Environmental Defense Fund
Landmark Growing Climate Solutions Act clears Senate
The bipartisan GCSA, with 55 cosponsors and backing from ag groups, passed by a vote of 92-8 on the full Senate floor on 6/24.
June 24, 2021 | By: Jacqui Fatka, Farm Progress
USDA to Invest More Than $4 Billion to Strengthen Food System
USDA announced $4 billion investment to strengthen critical supply chains through ‘Build Back Better Initiative’, bringing total initiative funding to $5 billion.
June 6, 2021 | By: USDA Press, U.S. Dept. of Agriculture
Ag Groups Ask Congress to Invest $200 Billion in Climate-Focused Ag Improvements in the American Jobs Plan
More than 450 organizations submit letter to Congress, accompanied by call from lawmakers
May 28, 2021 | By: Amie Simpson, Brownfield Ag News
Biden wants to pay farmers to grow carbon-capturing crops. It’s complicated.
Analysis of persistent issues with carbon markets, alternative options for the Biden Administration and USDA to scale up carbon sequestering practices.
June 29, 2021 | By: Helene Bottemiller Evich and Ryan McCrimmon, Politico
House spending bill boosts USDA climate spending, broadband support
FY22 Agriculture-FDA measure includes $26.55 billion in discretionary spending, an increase of $2.85 billion, including funding for conservation programs, research into RMA products.
June 24, 2021 | By: Philip Brasher and Steve Davies, Agri-Pulse
How to Practice Regenerative Agriculture in Your Own Home Garden
Restoring ecosystems in our own backyards.
June 14, 2021 | By: Erin Bunch, Well + Good
Launching the UN Decade of Ecosystem Restoration with the Rewilding & Climate Initiative
This month marked the official launch of the UN Decade of Ecosystem Restoration, an initiative of UNEP and the FAO to restore ecosystems to achieve global goals.
June 4, 2021 | By: Lindsey Jean Roetzel, One Earth