Editor’s Note: This is one article in a series that is included in the 2025 Farm Journal’s State of the Dairy Industry report. The full 16-page report will appear in the May/June issues of Dairy Herd Management and Milk Business Quarterly and will be published in this space over the next several weeks. To download the full report for free click here.
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Sustainability has transcended its roots as a mere buzzword, becoming an essential practice. One farmer spearheading these efforts is Jared Fernandes, Legacy Ranches in Tipton, Calif. He emphasizes the importance of caring for the land, cattle and agricultural legacy left behind.
Adoption and Awareness
While there is a positive trend in adopting sustainable practices, there’s a palpable gap in program awareness. As environmental regulations grow stricter and market demand for sustainable products rises, carbon credits and Environmental, Social and Governance (ESG) practices can offer both financial and reputational advantages.
More than half of the respondents (63%) reported involving themselves in at least one sustainable practice. Notably, larger operations are more likely to practice sustainability, particularly in the Western region.
Untapped Potential
Despite potential benefits, only 20% of respondents currently participate in carbon credit programs — though 38% plan to begin within the next three to five years. The top reasons for non-participation include a lack of awareness and insufficient compensation. Interestingly, philosophical and attitudinal opposition are the main hurdles for the one-quarter who have decided against participation.
In the words of one skeptical respondent, “I think carbon credits are a fad and may go away with a struggling economy.”
Leading Sustainable Practices
The most commonly used sustainability practices include water recycling and feed additives for improving efficiency and reducing methane emissions. However, three in five respondents are unaware of two major industry programs promoting sustainability — Scope 3 and ESG programs.
Gaps in awareness, consumer demand and regulatory changes are ongoing challenges in the journey toward sustainability. Yet, with continued effort and awareness, agricultural businesses can ensure a healthy and sustainable future.
