Conservation

DFA Awarded $46 Million USDA Grant to Advance Dairy Conservation and Small Farm Markets

Wed, 18 Feb 2026 15:28:29 GMT

Across the American heartland, the steady rhythm of the milking parlor marks the start of another day for thousands of dedicated dairy families. For the 9,500 farmer-owners of Dairy Farmers of America (DFA), this morning routine is a testament to a deep-rooted legacy of stewardship and hard work. However, in an era of fluctuating milk prices and a rapidly changing global marketplace, the pressure to evolve has never been higher. For many, especially the smaller family-run operations, the desire to implement cutting-edge conservation practices often hits a financial wall.

Earlier this month, that wall became a little easier to climb.

The announcement came from Kansas City: DFA has been awarded a landmark $46 million grant from USDA’s Advancing Markets for Producers (AMP) program. This wasn’t just a financial injection; it was a multiyear commitment to the future of American dairy, designed to bridge the gap between traditional farming and the emerging demands of a green economy.

Lowering the Barriers

For a small-scale dairy producer, the cost of new conservation technology — whether it’s advanced manure management, soil health initiatives or carbon-reduction tools — can be prohibitive. While the heart is willing, the capital is often tied up in the day-to-day survival of the farm.

The AMP grant specifically targets these barriers. By dedicating a significant portion of the $46 million to empowering small farms, the program ensures sustainability isn’t a luxury reserved only for the largest operations. It levels the playing field, providing the resources necessary for every DFA member to implement practices that protect the land while strengthening their bottom line.

From Stewardship to Market Leadership

Sustainability is no longer just an environmental goal; it is a market requirement. Modern consumers are increasingly looking for products that align with their values, and major retailers are responding by seeking out climate-smart dairy.

Hansel New, DFA’s assistant vice president of sustainability strategy and programs, views this grant as a vital tool for navigating these shifting waters.

“Our farmers have a long history of environmental stewardship — these practices aren’t new to them,” New says. “But this support provides even greater opportunity to explore, enhance and adopt new or expanded conservation practices.”

By accelerating the adoption of these practices, the grant helps DFA farmers position themselves at the forefront of value-added market opportunities. It connects the work done in the pasture to the premium prices offered in emerging markets, creating a diversified revenue stream that can help buffer against the volatility of standard milk prices.

A Resilient Future

The impact of this $46 million investment will be felt for years to come. As a voluntary program, it invites farmers to be partners in progress rather than subjects of regulation. It fosters an environment where innovation can thrive on the farm, leading to healthier soils, cleaner water and a smaller carbon footprint — all while ensuring the farm remains profitable for the next generation.

In a time when the dairy industry faces significant economic headwinds, this USDA funding serves as a vote of confidence in the American farmer. It recognizes that the path to a sustainable food system runs directly through the dairy barn.

As the sun sets on another day of hard work, the future for DFA’s 9,500 owners looks a bit more secure. With the support of the AMP grant, they aren’t just maintaining their farms; they are building a more resilient, competitive and sustainable industry that is ready to lead the world.

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Inside the Room: What Farmers Heard as USDA Rolled Out Its $700M Regenerative Ag Plan

Tue, 27 Jan 2026 20:54:33 GMT

When USDA quietly selected a small group of farmers to help roll out a new $700 million regenerative agriculture pilot program, most producers never knew the meetings were happening. Missouri farmers Jon and Brittany Hemme did, because they were invited into the room, sitting face-to-face with two cabinet secretaries and hearing firsthand how Washington plans to reshape soil health policy.

“We are very average farmers,” Hemme says. “It was a very humbling experience that we were chosen. My biggest takeaway is that I truly believe they’re trying to do the right things, bringing better health options to people through the way food is produced.”

Reinventing a Small Dairy to Stay Viable

Jon is one of three Hemme brothers continuing a dairy operation their father started 30 years ago. Today, the Hemmes operate the only dairy left in Saline County. Survival hasn’t come easily. As small dairies disappeared, the Hemmes reinvented their business model, adding on-farm processing and direct-to-consumer sales.

“That’s where our direct market part of our business came in, the creamery,” Hemme says. “Being able to go to processing and then direct market that end product has made us a viable operation yet as a small dairy.”

Their Hemme Brothers cheeses are now sold throughout Kansas City and central Missouri, but what also caught the attention of USDA was how they manage their land.

“We started planting cover crops the first time in 2017, got really aggressive by 2018 to where we tried to have all of our acres covered in one way or another,” Hemme says.

That shift began at the request of a landlord nearly a decade ago. Hemme says it pushed him to learn what regenerative agriculture really meant and how it could pencil out.

“We initially started just looking to try to reduce inputs to where we could keep a little more of our income,” he says. “For quite a few years we managed them that way trying to reduce our herbicide and we were successful, but that takes a lot of time and management. Here recently we’ve kind of mainstreamed it to where the main reason for them is erosion control.”

A Text Message From USDA

That work that started nearly a decade ago led to an unexpected invitation from Washington.

“We got a text message on Dec. 8 saying: ‘Would you and Jon want to come to USDA and be a part of Secretary Rollins’ announcement?’” Brittany Hemme says. “Thought it was a joke maybe at first, because it was so random. But we were on a plane the next morning and then with them in D.C. on Dec. 10.”

In the midst of the madness of the holiday season and school activities for their kids, the Hemmes went ahead and said yes, knowing this could be a once-in-a-lifetime opportunity.

A First-of-its-Kind $700 Million Pilot Program

Not knowing exactly what USDA was going to unveil, at the event, USDA and HHS announced what they call a first-of-its-kind, $700-million Regenerative Agriculture Pilot Program, administered through NRCS. The goal is to test a farmer-first model that improves soil health while maintaining long-term farm viability.

“We’re doing things a little bit differently than typical Washington, D.C.,” said U.S Secretary of Agriculture Brooke Rollins during the announcement at USDA. “We have encouraged the states to think differently and creatively as our laboratories of innovation about how to solve the many health issues facing America ... but really today is about the next step in making America healthy again, and that is talking about regenerative agriculture.”

During thee announcement, Rollins said the focus of USDA and HHS for the new pilot program was on protecting soil and is critical for farm productivity and longevity.

“Protecting and improving the health of our soil is critical not only for the future viability of farmland, but to the future success of American farmers,” she said. “We must protect our top soil from unnecessary erosion and boost the microbiome of the soil.”

But it wasn’t just USDA unveiling the new program. Rollins was standing beside Department of Health and Human Services Secretary Robert F. Kennedy Jr., who called the program a milestone tied to promises outlined in the MAHA Report.

“Among the recommendations of the report was the promise to make it easier for farmers in this country, farmers who are dependent on chemical and fertilizer inputs, to give them an off-ramp,” Kennedy said in December. “An off-ramp where they can transition to a model that emphasizes soil health. And with soil health comes nutrient density.”

An ‘Off Ramp’ for Farmers

When “U.S. Farm Report” recently caught up with the Hemmes to get their reaction, Jon says one of the key takeaways from the announcement is the structure of the pilot program and why that matters.

“It’s a five-year program, a five-year contract,” he says. “You can address multiple things in the same contract that you want to address. The farmer gets to pick his goal. They’ll develop a plan to help them achieve that goal, and then they’re going to quantify it with a soil test up front and one at the end.”

Along with the announcement, the Hemmes then had the chance to take part in a closed-door roundtable discussion with Rollins, Kennedy and Dr. Mehmet Oz, who serves as administrator for the Centers for Medicare and Medicaid Services under Kennedy.

“They notified us that we would be in a roundtable discussion with Secretary Kennedy, Secretary Rollins and Dr. Oz; that made us pretty nervous,” says Jon, laughing.

Brittany says one word stood out during that discussion.

“He said ‘off-ramp’ several times,” she says. “I really appreciated that, because this is voluntary. There’s nobody forcing anyone to do this program. It’s not all or nothing. You can work with USDA NRCS and come up with a plan that is going to work for you on your farm, in your context.”

With no cameras in the room, Hemme says the conversation felt genuine.

“They wanted some feedback from farmers,” he says. “They allowed us to each go down the line and explain our operations, our motivations behind using regenerative agriculture, and then they followed it up with some really good questions.”

Those questions included market access and how long the transition takes.

“You could see him, the wheels turning,” Hemme says of Kennedy.

What Was (And Wasn’t) Discussed

Before Kennedy joined the cabinet, some farmers worried his focus would be on restricting tools like glyphosate. The Hemmes say that never came up.

“It’s been more voluntary, putting something out there instead of coming in with a stick,” Jon says.

“There was mention of tools in the toolbox, and there was no mention of taking any of those tools away,” Brittany adds.

As Brittany has watched Jon’s regenerative journey on their own farm, she says regenerative agriculture is often misunderstood.

“Some of the negative connotation has come in from an all-or-nothing mindset,” she says. “They demonize certain tools in the toolbox, and that’s unfortunate. True regeneration is what works in your context.”

Lessons From Their Nearly Decade-Long Journey in Regenerative Ag

For Jon, this really isn’t unconventional or something new. He says regenerative ag, to him, all comes back to building resilience in your soil.

“It is conservation, but it’s also trying to build resilience into your soil,” he says. “If you follow the soil health principles, minimize disturbance, keep residue on the surface, a living root in the soil, you will start to build carbon. You’ll hold more water, perform better in dry conditions, and handle weather shifts.”

But in the nearly 10 years of diving into regenerative ag, Jon says that journey didn’t come without mistakes.

“I was very aggressive when I started out, and I kind of set myself back,” Hemme says. “If I were to give any advice, it would be to start slow and safe.”

He points specifically to cover crops. He says by trying to put cover crops on every acre at the start, he learned the hard way that if you let those cover crops get too tall, it can actually negatively impact crop production.

“If you’re too aggressive up front, you almost constipate your soil,” he says. “Eventually that residue has to leave.”

As the Hemmes say, they still want to pinch themselves over a trip that seemed like a dream, it was those direct conversations with President Donald Trump’s cabinet members that made them believe USDA’s support of regenerative ag will be a practical approach and one any farmer can try or do.

What else should you expect when it comes to regenerative ag? That’s exactly what “AgriTalk” Host Chip Flory asked Richard Fordyce, USDA Undersecretary for Farm Production and Conservation, just last week.

Natural Resources Conservation Service Lays Out ‘Farmer First’ Vision

Tue, 08 Jul 2025 15:14:58 GMT

“I started as a customer of NRCS first,” says Aubrey Bettencourt, chief of the USDA agency that helps farmers and ranchers manage natural resources on private lands. As a third-generation California farmer, Bettencourt is leading the effort to make the Natural Resources Conservation Service work more efficiently and effectively for farmers.

Outlining four efforts, Bettencourt and NRCS Associate Chief Louis Aspey laid out their “farmer first” approach at the 2025 Trust in Food Symposium in Washington, D.C.:

Upgrade technology.
Revive hands-on service through field offices.
Improve data management and use.
Simplify programs.

Tech Overhaul to Reduce Burdens

Consolidating five internal systems into a single mobile-based platform will allow NRCS staff and farmers to access farm data while sitting on the pickup tailgate in real time, say agency officials. The initiative, referred to as “One Farmer, One File,” is intended to reduce duplicative paperwork and streamline conservation plan development.

According to Aspey, the new system will allow farmers to enter information only once, with NRCS and partner agencies, such as Farm Service Agency and Risk Management Agency, handling verification behind the scenes. He also notes the agency is experimenting with artificial intelligence (AI) to help generate and certify conservation plans with basic farm data, which will get projects off the ground faster. [1] [2] Farmers will play a key role in providing a “reality check” in ensuring AI models accurately reflect real-world conditions, Aspey adds.

Improving rural broadband access [3] [4] [5] is essential to making the new system work, stress Bettencourt and Apsey. Without faster internet connections, agency service centers and farmers alike will continue to face what they call the “spinning wheel of death.”

Renewed Focus on Field-Based Service

NRCS was founded to provide one-on-one support and technical assistance, Bettencourt says, and changes are in the works to return to the agency’s field-based origins. While headquarter operations are being downsized, she says local service centers will remain open. The goal is to equip local offices with the tools and talent needed to meet farmers where they are.

The agency is reviewing staffing needs across its network of service centers, Aspey says, to identify and address regional gaps. Future hires will be fluent in the technologies used in modern production agriculture, such as drones, precision irrigation and autonomous equipment, Bettencourt adds.

Data Use and Farmer Trust

Knowing many farmers are wary of how their conservation data is used, Aspey says part of the agency’s modernization effort is to ensure data is not only protected but used in ways that benefit the farmer — such as helping them qualify for market premiums or regulatory recognition of conservation practices.

He also emphasizes the importance of streamlining recordkeeping across USDA, saying farmers should no longer have to submit the same information across multiple programs.

Partnerships and Program Tweaks

Bettencourt says NRCS wants to collaborate more with food companies, cooperatives and local conservation groups through existing vehicles such as the Conservation Partnership Program and Regional Conservation Partnership Program. She describes NRCS’s role in these efforts as the federal “gold standard” for conservation practice validation.

Within NRCS, agency officials are eyeing reforms to make conservation programs more accessible and responsive. For example, Aspey emphasizes programs must be designed to scale not just for large operations, but small family farms that typically face higher per unit costs. To better adapt to dynamic market conditions, Aspey says his team is considering tools such as payment schedules tied to inflation.

He points to the length and complexity of the easement process as a key barrier, saying simplification is a top priority. Acknowledging farmers have been frustrated with delays in the Conservation Stewardship Program, Aspey stresses farmers should be paid promptly after completing their work.

When it comes to program timing, NRCS deadlines often fall during the busy planting season, for example. NRCS officials say they aim to better align program timelines to farmers’ off-season schedules when possible.

Another target of farmer scrutiny is NRCS program language. Terms such as “eligible” and “accepted” might be familiar to agency staff, Aspey notes, but they can confuse or deter farmers who aren’t used to federal program jargon. NRCS officials say they aim to reduce this jargon to make programs more accessible. According to Bettencourt, they are also working to improve understanding of NRCS programs with other federal agencies, such as EPA, and food company partners. Her goal is “to be the farmer in the room,” so farmers get credit for engaging in voluntary conservation.

What Farmers Might Expect

If plans move forward, officials hope farmers will see faster service, reduced paperwork and improved access to mobile tools that allow them to work with NRCS on their own schedules. Bettencourt emphasizes changes are already underway but should be implemented in 2026.

“This is not a pipe dream,” she says. “We’re already demoing the system.”

According to Aspey, farmers will play a central role in shaping how that change unfolds — through feedback, collaboration and by challenging the agency to better reflect the realities of farming in 2025.

“You all are what makes the engine of the American economy go,” he says.

USDA Releases Approximately $20 Million of Paused Inflation Reduction Act Funding That Had Been Under Review

Fri, 21 Feb 2025 02:36:01 GMT

USDA Secretary Brooke Rollins announced today that USDA will release the first tranche of funding that had been paused due to a review of Inflation Reduction Act (IRA) allocations.

Following White House directives, USDA is honoring existing contracts with farmers, releasing approximately $20 million for the Environmental Quality Incentive Program (EQIP), the Conservation Stewardship Program (CSP), and the Agricultural Conservation Easement Program (ACEP).

“American farmers and ranchers are the backbone of our nation,” said Rollins, citing regulatory burdens, environmental policies, and inflation as major challenges. She criticized the Biden administration’s handling of IRA funding but affirmed commitments to farmers who had already made investments.

.@SecRollins announced that @USDA will honor contracts that were already made directly to farmers and release the first tranche of funding that was paused due to the review of funding in the so-called Inflation Reduction Act.https://t.co/xQdmZFzkwp
— House Committee on Agriculture (@HouseAgGOP) February 21, 2025

This marks the initial phase of released funding, with further announcements expected as USDA continues its review to ensure taxpayer dollars support farmers and ranchers rather than unrelated initiatives.

Earlier this week, while speaking at the Top Producer Summit in Kansas City, Rollins told AgriTalk’s Chip Flory asked about the paused IRA funding earlier this week, specifically the status of EQIP.

“Any commitments that were made previously, we will, of course, fulfill those commitments,” Rollins told Flory. “That’s the only way to do it. Everything that is forward leaning, that’s what we’re really focusing on reevaluating in the current environment.”

You can hear the full interview between Rollins and Flory below.

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Washington Grower Shares How To Scale Regenerative Farming

Wed, 04 Dec 2024 17:11:54 GMT

By Deborah Huso

Austin Allred’s family has been farming the Royal Slope region of Washington state between Seattle and Spokane for three generations. He and his two brothers, Derek and Tyson, farm a combined 6,000 acres. They grow potatoes, cherry and apple trees and produce honey, while also running 10,000 beef cattle and milking about 6,000 dairy cows. The family also recently added a worm farm and a beef processing facility.

Like many producers with combined operations, Royal Family Farms focuses on finding a purpose for every acre and every byproduct. In fact, the Allreds have been practicing regenerative farming before it really had its own term.

“My dad was no-tilling before it was billed as regenerative,” Allred explains. “He was doing it to reduce diesel usage. He was also very conscientious about planting woodstock in corners of fields.”

Allred and his siblings took the same approach as they expanded the farm operations.

“I accelerated and defined [what Dad was doing] and put some strategy to it,” Allred says, with the goals of building organic matter in the soil, sequestering carbon and cleaning wastewater.

Royal Family Farms

(Royal Family Farms)

Extended Crop Rotations and Grazing
Allred recognizes the kind of stress agricultural production can put on the land, hence the many inputs required in traditional farming. But Royal Family Farms has demonstrated that not only do regenerative practices work, but one can accomplish them at scale.

“Anytime you’re growing a crop that a human can digest, you’re going to put a lot of pressure on soil,” Allred says. “It’s really hard to do a total no-till strategy. You can’t plant weeds with your wheat.”

Allred says potatoes are the least regenerative crop the farm grows, but says they counteract it by working cattle into a long crop rotation for added soil fertilization.

“If 20% of the ground is in potatoes, that land doesn’t come back online for another six to seven years. And during those years, we do a lot of composting,” he says. “Other years we do cover cropping and planting multispecies crops to grow microbial activity.”

Allred grazes his beef cattle on the cover crops, which provides feed while simultaneously adding more soil amendments, such as nitrogen (N) and phosphorus (P).

Upcycling Everything
Nothing goes to waste at Royal Family Farms. The Allreds work with all the processors who clean and box their apples and turn their potatoes into French fries to retrieve all of the products that don’t qualify for human consumption to be upcycled into protein, as Allred explains it, providing food for their cattle in the form of potato culls or damaged fruit or nutrient-rich compost for their fields. Meanwhile any wood chips produced when the Allreds retire a cherry or apple orchard is either turned into cattle bedding, used for the worm farm or processed into biochar, a carbon-rich byproduct.

The Allreds’ interest in biochar, a charcoal-like substance derived from organic waste, developed out of a desire to bring more carbon into agricultural systems. And for the past few months, Royal Family Farms has used four machines to burn wood chips into charcoal that, when mixed with compost, recharges carbon in the soil.

“As farmers, we are selling off carbon, whether it’s beef, milk or cherries,” Allred says. “Seventy to 80% of retired apple, cherry and pear trees in Washington were getting burned at the end of their effective life. Biochar was a way to bring in more carbon and upcycle and compost it.”

“We try to upcycle every byproduct into something of value,” Allred says. “Eventually it all becomes a soil amendment. It’s only a loss if we let that carbon into the air.”

Reusing Wastewater With Worms
Water is a critical part of any farming operation, and Royal Family Farms sought out a better way to
filter wastewater from their dairy operations and reuse it. What was their regenerative solution? Worms.

“We started investing in what is now the biggest worm farm in the world about eight years ago,” Allred says.

Working with a company called BioFiltro headquartered in Santiago, Chile, the Allreds’ worm farm includes eight acres of what looks like 5'-deep swimming pools. These pools are able to serve as the home for about 50 million worms at any one time.

“Wood chips make up the medium they live in, and that’s also the filter for the dirty water,” Allred explains. “The dairy is designed to flow to a low spot, where we have two 5,000-gallon vacuums that bring the wastewater to the worms.”

The worms digest the wastewater, removing heavy metals and other contaminants. The waste matter the worms produce is rich in microbials, and the Allreds take the worm castings and mix them with compost to produce nutrient-dense soil.

Royal Family Farms

(Royal Family Farms)

Eliminating Waste and Need for Inputs
Allred says engaging in regenerative practices large-scale required careful consideration of how everything could work together.

“We started integrating vegetable, fruit, protein and bees to get to the next generation of regeneration,” he explains. Allred points out that the digestive systems of cattle along with biochar create compost. “It’s all about upcycling ‘waste’ products.”

The result of instituting these practices is dramatically reduced reliance on inputs.

“This year we used no phosphorus and potassium and had equal to or greater yields without it,” Allred remarks. “And across the board, we have better quality.”

He adds the farm’s greatest payout is not having to input synthetics.

“The more natural systems we have in play, the more nutrients we keep in the loop, the less we have to go get inputs,” he says.

Allred acknowledges farmers can filter water through mechanical or chemical systems, but says natural systems are typically cheaper to implement.

“Natural investments are always going to have a long-term return on investment,” Allred says. “The problem is producers often don’t have the margin to always be investing in long-term ROI.”

Royal Family Farms’ regenerative farming practices offer payoffs 10 to 15 years out, Allred estimates.

“We’ve bridged that gap with carbon credits and vertically integrating to pick up those margins,” he says.

This year Royal Family Farms is starting to see its regenerative operations pay off in a big way.

“We purchased 90% less phosphorus and potassium [K] than we have in the past and significantly less nitrogen,” Allred says. “We’re working on nitrogen for the next five years because ruminants make P and K.”

“Regenerative farming starts to gobble up the biggest expenses any farm is going to pay — your fertilizer bill and your chemical bill,” he says. “On the cattle side, your feed bill is your biggest expense. Regenerative farming gives you higher-quality, local food.”

No one knows better than you that the future of your farm depends on balancing practices and profits that sustain your land, resources and family . The stakes are evolving based on weather patterns, technology, market demand and more. What actions are you taking to remain resilient?

Digging into Soil Health

Tue, 03 Dec 2024 22:14:48 GMT

One hundred years after the Dust Bowl blew away topsoil from nearly 200 million acres of American farmland, farmers and ranchers are slowly entering into a new relationship with the soils beneath their boots.

But is change happening quickly enough to make an impact on the future of our soil? Some experts are concerned.

Certainly the nomenclature “soil health” is more commonplace now across farm management plans and in everyday farm-gate conversations.

“In the early 2000s ‘soil health’ was a term hotly debated among scientists as a replacement for ‘soil quality’,” says Dr. Bianca Moebius-Clune, climate and soil health director of American Farmland Trust’s Climate and Soil Health Initiative.

More than 20 years later, Moebius-Clune says that “significant strides” have been made in normalizing the concept of soil health across the research and agricultural community.

But that normalization may not be translating to soil health practices on the ground fast enough.

“We need to scale up the drivers of adoption, because we don’t, as of yet, have a New Conventional Agriculture where soil health management systems are the new normal,” she says.

“Depending on which data we look at, no-till or reduced-till are in use on about half the acres at this point, and possibly still slowly growing, while cover crops increased from 10M acres in 2012 to about 15M acres in 2017 to about 18M acres in 2022 per the Ag Census, that’s 6% of today’s about 300M cropland acres,” she says.

“That’s progress, but not enough progress!”

(America’s Conservation Ag Movement)

Soil Health Principles

Moebius-Clune says that principles that promote healthy soil ecosystems are broadly applicable, but they need to be carefully adapted for success in a production system.

She points to four globally accepted principles that, together, can achieve an optimal soil health system:

- Maximize biodiversity
- Maximize living roots
- Maximize soil cover
- Minimize disturbance

Putting these into place on farms and ranches is to commit to stewarding what Moebius-Clune calls an “underground herd of livestock” or living organisms that contribute to a vibrant soil ecosystem and, therefore, high-functioning soils.

Beyond well-known practices like reduced tillage and cover cropping, those baseline principles can yield additional opportunities for farmers to invest in the health of their soil, including diversification of crop rotations, integrating livestock into cropping systems and precisely managing inputs. One innovative soil health tactic— biochar --has recently been included by USDA-NRCS through Soil Carbon Amendment Conservation Practice Standard 336, meaning financial and technical assistance is now available to help growers with implementation.

Soil Health Drivers

If the baseline principles are basic enough, why aren’t more farmers and ranchers jumping ahead in implementation?

Moebius-Clune says that adoption thus far has largely been driven by innovators, early adopters, researchers, NRCS and organizations like American Farmland Trust that have put time and effort into education, outreach and training. But, that work, she says, is not sufficient to take soil health adoption to the next level.

“We need to address the still significant social, financial and technical barriers to adoption,” she says.

American Farmland Trust is working in collaboration with partners across the value chain, including America’s Conservation Ag Movement , to break down those barriers through initiatives that develop farmer networks, science-and-practice grounded technical resources, decision-support tools and policy solutions to improve farmer access to resources.

Soil Health Benefits

Those soil health early adopters are seeing tangible benefits on farms and ranches, especially as climate extremes are becoming more prevalent.

“Healthier soils provide more resilience in extreme conditions,” says Moebius-Clune.

Moebius-Clune credits the “stable aggregates” of healthy soils for keeping pores open during periods of heavy rainfall events, allowing rainfall to infiltrate into the soil and store rather than washing topsoil downstream.

“This prepares systems to be more resilient during droughts when stored water in a deeper root zone remains available for longer,” she says, adding that diverse production systems are more likely to produce some crops that maintain yield when others fail.

The diversity of ecosystems in healthy soils can protect crops from pests and pathogens as well.

“There is even evidence in social science literature that farmers who manage for healthy soils may experience less stress and more inspiration, autonomy, confidence, freedom, flexibility and happiness,” she says.

Soil Health + Bottom Line

While soil health practices could lead to enhanced opportunities for farmers and ranchers looking to cash in on the carbon marketplace , Moebius-Clune cautions that there is still confusion and uncertainty holding many back.

But, even without that opportunity, American Farmland Trust has been putting soil health to the economic test by highlighting case studies where soil health penciled out in the bottom line.

“Our case studies show potential for return on investment through increased yields, decreased input costs, decreased long-term production system risk during extreme weather events and decreased maintenance needs and also quantify environmental benefits such as decreased erosion, nutrient and sediment pollution and increased carbon sequestration,” Moebius-Clune says.

“We know that farmers who successfully adopt these systems experience real economic returns on their soil health investments that can be quantified.”

America’s Conservation Ag Movement is a public/private collaborative that meets growers across the country where they are on their conservation journey and empowers their next step with technical assistance from USDA-NRCS and innovation solutions and resources from agriculture’s leading providers. Learn more at americasconservationagmovement.com .

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Here Are The Notable Changes In The House Farm Bill

Tue, 04 Jun 2024 19:04:11 GMT

The House Ag Committee recently released and approved their initial version of the long-awaited 2024 Farm Bill, which included changes to several areas important to production agriculture – such as reference prices, base acres and federal programs. During an episode of the Top Producer podcast, Farm CPA Paul Neiffer explained how farmers could expect those changes to affect them.

Reference Prices
According to Neiffer, the proposed farm bill would increase reference prices across the board, with the smallest increases in barley, oats and corn and the largest in rice. The changes for other crops include:

• Legumes: ~19%
• Peanuts: 17.8%
• Cotton: 14.4%
• Wheat: 15.5%
• Soybeans: 18.5%

It’s important to note, however, these likely won’t be the final numbers in the farm bill.

“I think this is going to increase the cost of the farm bill by – over a 10-year period – maybe $15 billion to $20 billion,” Neiffer says. “If they need to cut some, they can cut it out of here.”

Base Acres
Another update includes base acres. In the new House-approved language, if you have planted more acres than you have base acres, the excess acres will now qualify to be increased to reflect what your plantings were over the average of 2019 to 2023 crop years.

“This is a pretty good deal. It’s a one-time opportunity – not a reallocation of your current base,” Neiffer says. “Let’s say you have corn and soybeans, but the last five years you only planted corn. This base acre update will be based on what you planted. So, if you only planted corn, you’ll get an increase in corn base acres.”

In addition, non-covered commodities, such as potatoes or onions, can now be used on up to 15% of total farm acres.

The House proposal does not restrict who qualifies for the program.

Agriculture Risk Coverage Program
Like reference prices, the Agriculture Risk Coverage program (ARC) also sees an increase in this proposal.

The guarantee of benchmark revenue jumps from 86% to 90% and the maximum payment also rises from 10% of benchmark revenue to 12.5%.

Marketing Loans
Neiffer says that while some may go up slightly more than others, almost all marketing loans increase by about 10%.

“There are a couple of situations where that helps. If you want to get a loan, you can get more of a loan,” he says. “But it could also hurt you in a way.”

He goes on to explain price loss coverage (PLC) payments are calculated as the difference between the effective reference price and market year average (MYA) price and the MYA price cannot drop below the loan rate. So, with the increase in the market loan rate, PLC payments could be smaller.

Livestock Programs
On the animal side, changes have been made to the dairy margin program and livestock indemnity payments.
“The big one [for the dairy margin program] is the tier one coverage gets more of a subsidy from 5 million lb. up to 6 million lb. That’s a 20% increase,” Neiffer says.

The payment rate for livestock indemnity payments is also increased to up to 100%. Neiffer says that increase is for animals that have been killed by a federally protected species, such as wolves.

He adds if a pregnant animal is killed in this situation, the owner could be paid up to 85% of the unborn animal’s lowest weight class.

Partnership Tax Payments
Another payment change to watch involves how operations are classified. In the past, Neiffer says, operations taxed as partnerships – such as an LLC or S corporation – were limited to one payment. The new proposal does not have a payment limit for qualified pass-through entities, which could be any LLC not electing to be a C corporation, any S corporation or any general partnership or joint venture. The one-payment limit would still apply to C corporations.

“I don’t know if this will happen,” Neiffer says. “The 2018 Farm Bill had certain provisions similar to this in the House bill but didn’t happen.”

Farm Income Definition
The House proposal also broadens the definition of what counts as farm income.

“Under the current definition of farming, gains from trading in farm equipment typically is not considered to be farm income. This farm bill specifically states that is farming, as well as agritourism and direct-to-consumer marketing,” Neiffer says. “That’s good news.”

Conservation Reserve Program
The maximum Conservation Reserve Program (CRP) payment more than doubles in this draft – jumping from $50,000 to $125,000.

“For farmers who maybe have acres that really shouldn’t be farmed, this is allowing more of those acres to get enrolled,” Neiffer says.

Crop Insurance
The final area Neiffer highlights with notable changes is supplemental crop insurance.

He shares the 85% cap on revenue protection policies is increased to 90% for individual yield or revenue coverage, but it’s aggregated across multiple commodities. The supplemental coverage option (SCO) is also increased from 86% to 90%.

“This is really welcome news for farmers in North Dakota, Texas, Oklahoma or southern Missouri where the cost of crop insurance is so high,” Neiffer says. “By increasing the subsidy, this is probably going to allow a lot of those farmers to buy revenue protection at 60% or 65% and then use SCO to go up to 90%.”

There’s also a 10-percentage point subsidy increase for those who qualify as beginning or veteran farmers. This has been expanded from five years to 10 years as well.

Have You Heard of Scope 3? It Offers Opportunity for Agriculture

Thu, 08 Feb 2024 19:43:45 GMT

You might have heard the term Scope 3 thrown around. It’s all the buzz lately in the world of sustainability. But what does it mean?

A company’s emissions are broken down into Scopes 1, 2 and 3. This helps them account for different categories of their greenhouse gas (GHG) emissions:
• Scope 1 refers to direct emissions controlled by the company, which include emissions from their operations and facilities.
• Scope 2 addresses indirect emissions from energy an organization purchases or brings in to operate the business.
• Scope 3 covers indirect emissions from the company’s supply chain, both upstream and downstream.

Scope 3 is where things get interesting for farmers and the rest of agriculture’s “upstream” supply-chain partners. Upstream means all of the materials and transportation required before something gets to the company for production or processing.

We’re all aware companies are evolving their sustainability strategies. Increasingly, they’re working to meet the sustainability demands of their customers and the various voluntary initiatives established by their leadership and downstream supply-chain partners. As a result, businesses must be able to measure and reduce their Scope 3 emissions. It’s especially important for companies whose supply chain includes agriculture. Like it or not, agriculture is considered one of the primary contributors of GHG emissions and climate change. McKinsey & Company recently reported agriculture is responsible for about 24% of global emissions, making agricultural emissions a major focus of decarbonization efforts.

Onerous as this sounds, this creates tremendous opportunities for farmers who have already reduced emissions, or will in the future, through on-farm practices, such as reduced energy usage, improved soil health measures and reduced machinery passes on a field.

When will Scope 3 opportunities be available in your area? This is the big question. Many existing and new companies are collaborating to understand which methodologies, strategies and systems are required to support this new type of sustainability accounting in a way that’s consistent and realistic for our fragmented industry. New pilot programs are popping up regularly. But, so far, they have been concentrated in very small regions and vary greatly from one program to the next.

If you believe you have practices that could support Scope 3 reductions, talk to your local agribusiness partners to see what’s available in your area. Consider reaching out to your grain elevator, meat packer, dairy processor or other supply-chain partners.

If there is a new sustainability company or expert reaching out to you for a meeting, take the time to listen. They could be bringing you new opportunities to monetize sustainable practices on your farm or providing valuable information to help better educate you on decarbonization or Scope 3 opportunities in your area. Not every opportunity might be right for your farm, but taking the time to get better educated on the landscape will be valuable now and in the future.

Heather Gieseke’s insights help position agribusinesses for growth and profitability – from risk management to carbon mitigation, emission reduction and other agriculture advocacy related initiatives. A leader of Pinion’s sustainability practice, Heather champions sustainability for the farm, family and business.

3 Questions to Consider About Carbon Programs

Wed, 24 Jan 2024 17:28:05 GMT

By Heather Gieseke

When it comes to carbon programs, most U.S. farmers are sitting on the sidelines.

Recent data shows farmer enrollment in the programs is less than 5%. Many are skeptical about climate change or don’t understand how carbon programs work. Others wonder if there’s really any value in them, and some are concerned that carbon programs will become government-mandated, although the U.S. market today is voluntary.

Yet, having worked in agriculture for my entire career and specializing in carbon the past few years, I know farmer awareness and curiosity about these initiatives is expanding dramatically.

Carbon programs pay farmers for carbon credits, which are then sold in the market to someone looking to offset their carbon footprint. In a carbon program, a farmer is required to implement specific practices, and the program should follow a protocol established with a carbon registry, such as the Climate Action Reserve.

If you’re considering enrolling in a carbon program, keep these points in mind:

1. Does it seem too good to be true?
Carbon programs are not a get-rich-quick scheme. If a program is promising you the world and you have to do nothing in return, you should probably ask more questions or consider other options.

2. Is the organization requiring you to purchase something in order to participate or paying you in a credit to purchase something?
Just because it’s a trusted brand from which you’ve purchased crop inputs or services in the past doesn’t mean it’s qualified to deliver on a legitimate carbon project. Most claims that applying specific products will improve carbon sequestration are not backed by legitimate or peer-reviewed research that verify creditable improvements.

3. Do you have enough information?
Ask some technical questions, even if you aren’t an expert. The salesperson’s responses should alert you right away if the program is legitimate and if they are truly knowledgeable in the carbon arena.
Here are a few to consider:

Are the credits issued through a registry?
How are the credits verified?
Who’s doing the verification?
How are the credits issued, sold and accounted for?
Who’s buying the credits? At what price?
How much does this company keep versus how much you, the farmer, receive?

Shop around if you’re interested in participating in a carbon program. Consider a few from both trusted and new players in the market. Just make sure you’re showing up with a learning mindset and a healthy level of skepticism in order to find the right one.

Heather Gieseke’s insights have helped position agribusinesses for both growth and sustainability — from risk management to carbon mitigation and emission reduction. A leader of Pinion’s sustainability practice, she champions sustainability for the farm, family and business.

How One Dairy Farmer Found Herself on the VERGE of the Climate Conversation

Fri, 12 Jan 2024 16:51:26 GMT

It’s not easy for Suzanne Vold to leave the day-to-day business of the dairy farm that she runs alongside her husband and brother-in-law. After all, the fourth-generation farm in Minnesota has 500 cows and 600 acres of row crops that supply forage and grain for the herd.

But, in October, Vold received an offer that she felt was too important to turn down—the chance for a farmer to take a seat at one of the largest climate-tech events in the nation. Courtesy of the Innovation Center for U.S. Dairy , an America’s Conservation Ag Movement Partner and Premier Sponsor of GreenBiz VERGE , which hails itself as “the center of gravity for the climate community,” Vold gladly removed her work boots and gloves for four days of discussions around agriculture and its impact on climate.

For the Innovation Center for U.S. Dairy, bringing Vold along for the conference, and even crafting a panel discussion that included her and other dairy value chain members, was a chance to bring agriculture to a table where it had largely been absent.

“In our years participating in GreenBiz VERGE, we recognized the farmer perspective was often missing from conversations, so we prioritized opportunities to elevate their important voice,” said Karen Scanlon, Executive Vice President, Environmental Stewardship, Dairy Management, Inc. “Agriculture has a tremendous opportunity to grow solutions to critical environmental challenges. We have to focus on how to best support and invest in farms as they make decisions that work for their family businesses, their communities and our planet.”

Having Vold in attendance was also a step to help ensure that their industry’s sustainability goals and achievements are not only recognized, but also attract partners who can help accelerate the path to success.

Vold is no stranger to thinking about sustainability, both in her operation and in the industry. It’s why she was a natural fit to help the Innovation Center for U.S. Dairy accomplish their goals at VERGE 2023.

Dorrich Dairy has taken strides to up the sustainability on their farm, most recently converting to robotic milking and implementing a continuous flow manure composter, which runs 24/7 to turn solid waste into bedding for the dairy cows, a marketable product for other farms and even compost soil companies.

Vold has taken leadership roles within the industry to elevate dairy’s role in sustainable food systems. She currently serves as chair of the DMI Environmental Stewardship Committee. For the Innovation Center for U.S. Dairy, she has served on the U.S. Dairy Stewardship Commitment Committee and the Task Force on Regenerative Agriculture and Biodiversity, and helped shape the industry’s protocols on GHG corporate standards and net zero goals and measurement.

Trust In Food spoke with Vold during VERGE 23 to learn how her attendance was received by the climate audience and what perspectives she brought from her farm to share with attendees.

Trust In Food: What has surprised you most about attending VERGE 23 with the Innovation Center for U.S. Dairy?

Vold: I’m excited to see that many attendees are supportive of farmers, but there are very few producers here. I would like to see more of us here who are on the front lines. Very often, farmers get talked at and not with. We know our farms, we know our animals, and we know our land. We know what works and what doesn’t because we are generational businesses. We are not in it for the short term. When we make decisions on our farm, whether it’s a day-to-day decision or a huge capital investment, we are thinking about what is the right thing to do for the next generation?

I am surprised, also, to see that so many people are excited to talk to a farmer. Am I happy to talk to them? Absolutely, but I can only share what’s happening on my farm. Every farm is different, not only in location, climate, and soil, but every farm is a unique individual operation.

Why was it important that you take this opportunity to attend VERGE 23 with the Innovation Center for U.S. Dairy?

As a dairy industry, we believe in the power of collaboration, and that includes farmers like me speaking up and being on the front lines at events like GreenBiz VERGE. We know events like these often result in decisions being made that will affect what we do on our farms, and no one knows a farm better than the farmer who runs it. We are the ones getting our hands dirty every day. So, we need a seat at the table to listen, to learn and to educate.

The thing that is on everyone’s mind here at VERGE is also the thing that is on your mind every day on your farm – the weather and how climate is changing. How are you working to mitigate weather changes on your farm?

I can tell you what I’ve seen on my farm as far as changing climate and it’s that we’ve had more extreme weather events in the last decade than we did in my first 10-15 years farming. As I watch the news and see extreme weather events around the country, there are more of them.

In my area in Minnesota, in 2021, we were in extreme drought, all year. That decreased our forage harvest by 40-50%, so we had to purchase that much more feed. We are still paying off debt from those purchases. This year, the drought was more moderate, so our second and third crop was not up to standard. We don’t have irrigation because we haven’t needed it. The last few years have made us wonder, though, if we do.

Are there things I can do to improve my soil health to avoid irrigation? Yes. Am I looking at those? Yes. They are expensive, so can I do them alone? Probably not. That’s why events like GreenBiz VERGE are such a great opportunity to learn and collaborate with others who I know are experiencing similar challenges.

Want to Avoid Leaving Climate-Smart Money On the Table? There's An App for That

Fri, 29 Dec 2023 23:02:47 GMT

In 2023, USDA’s Partnerships for Climate-Smart Commodities turned on the spigot to fund 141 projects, totaling $3 billion. Understanding the projects — each run by a different organization with its own unique offerings and structure — begs the question: Is it possible to have too much of a good thing?

“Producers are always interested in looking at opportunities, but we can’t review 141 grants,” says Jimmy Emmons, western Oklahoma rancher and Trust In Food vice president.

To cut out the time-consuming task of wading through the climate-smart projects, a new app pilot, the Climate-Smart Opportunity Navigator , seeks to remove the paperwork clutter and match farms and ranches with the right Climate-Smart Commodity grant project in minutes.

“Quicker and more efficient means to evaluate opportunities will increase participation, offer simple communication avenues, and, ultimately, get funding into the hands of growers so they can quickly turn those dollars into applied practices,” says Joelle Mosso, Western Growers Association associate vice president of science.

How Does the Climate-Smart Opportunity Navigator Work?

The app pilot, created by Farm Journal’s Trust In Food and AgWeb, is powered by USDA data on the 141 projects, most of which are focused on major commodities such as corn, soybeans and livestock. Harnessing this data in an app, producers can input their operation basics – such as location, commodities produced, and production practices and interests – and be matched with one or more of the Climate-Smart Commodities projects that fit their individual specs.

The app provides a basic description of each program match along with contact information so it’s easy to compare options and take the next step to participate.

For example, an Indiana corn grower interested in adopting no-till and cover crop practices would input their data to the Climate-Smart Commodities Opportunity Navigator. In four questions, the tool matches the farm’s profile and interests with 11 possible grant projects, such as:

Field to Market’s “Climate-Smart Agriculture Innovative Finance Initiative”
National Fish and Wildlife Foundation’s “Farmers for Soil Health Climate-Smart Commodities Partnership”

In contrast, a Colorado beef and bison producer looking to adopt prescribed grazing and soil health improvement practices on pasture would input their information to the Navigator tool and it matches the farm’s profile and interests with 9 grant projects that includes:

American Sustainable Business Institute Inc.’s “The Growing GRASS Project”
Sustainable Northwest’s “Building a Regenerative Ranching Economy in the West”

A Pennsylvania dairy producer interested in adopting nutrient management and cover crop practices matches with 9 grants, such as:

Truterra LLC’s “Climate SMART (Scaling Mechanisms for Ag’s Regenerative Transformation)”
Dairy Farmers of America, Inc.’s “Scaling Methane Emissions Reductions and Soil Carbon Sequestration – A Value-Added Commodities Approach for U.S. Dairy”

And an Indiana pork producer who practices feed management and integrates cover crops matches with 2 grant projects:

Fischer Farms Natural Foods LLC’s “Fischer Farm Ultimate Beef and Pork Strategy”
Farm Journal’s “The Connected Ag Project”

Big Picture: The Perfect Climate-Smart Project Isn’t One-Size-Fits-All

“It’s great there are lots of opportunity for producers with USDA’s Partnerships for Climate-Smart Commodities, but with so much opportunity it can be very overwhelming,” says Andrew Lyon, Trust In Food’s director of technical assistance and Kansas rancher. “By putting in specific information about your operation, the Navigator tool allows you to whittle down grant opportunities to the handful that are most applicable to you and provides you contact information so that you could follow up with those few opportunities that best suit you.”

While Farm Journal is excited about its own $40 million Climate-Smart Commodity grant, The Connected Ag Project , it wants producers to get in touch with the opportunity that best suits them, Lyon adds.

Test Drive the Climate-Smart Opportunity Navigator Tool

Farm Journal’s AgWeb and Trust In Food look forward to hearing from producers about their experience using the beta version. Take the Climate-Smart Opportunity Navigator for a test run, and let us know what worked and what didn’t.

USDA’s Climate-Smart Commodities, Explained

In 2021, USDA announced a historic investment in farmers, ranchers and private forest landowners through a program dubbed the Partnerships for Climate-Smart Commodities . The goal? To scale climate-smart agricultural production practices across the U.S. and to promote and market climate-smart commodities in thriving markets.

To do this, over the next 5 years USDA is financing 141 pilot projects to support the production, tracking and marketing of these climate-smart commodities.

While the specific Partnerships for Climate-Smart Commodities grant projects vary widely, each boil down to putting financial incentives or technical support directly into the hands of U.S. farmers, ranchers and landowners to produce and market climate-smart agricultural commodities.

While the term, “climate-smart commodity” is relatively new, the farming and ranching practices it describes have, largely, been around for much longer. Incorporating cover crops, grazing and rangeland management, prairie restoration and nutrient management are just some of the practices that fall under the climate-smart umbrella.

For many producers, participating in a CSC grant translates to getting credit and even cash payment for practices already in place on farm. What’s more, for producers seeking funding sources or simply a push to try something, new these grants are an opportunity to make a change with support along the way.

USDA Secretary Tom Vilsack Reveals the Final COP28 Declaration Will Not Focus on Agriculture and Food

Mon, 11 Dec 2023 20:28:02 GMT

Despite calls from countries to focus on food and agriculture as a way to meet the world’s climate goals, USDA Secretary Tom Vilsack revealed that the final COP28 declaration would not focus on agriculture and food. This decision was influenced by a request from the G77 group of developing countries for additional review and participation related to agriculture and food, leaving no time for negotiations.

While Vilsack highlighted the importance of a special day dedicated to agriculture and food policy and the participation of U.S. farm and food leaders, he considered the Emirates Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Change, signed by 152 nations, and commitments by countries and companies to reduce greenhouse gas emissions and fund related projects as significant achievements. However, some observers were disappointed because this would delay progress until June 2024.

Today, at the first-ever day dedicated to food and agriculture at a COP conference, we’re proud to highlight the steps we’re taking to tackle the climate crisis, invest in food systems innovation, and bring new opportunities to producers #COP28 pic.twitter.com/69uyWVdmcZ
— Secretary Tom Vilsack (@SecVilsack) December 10, 2023

Vilsack mentioned the Agriculture Innovation Mission (AIM) for Climate , a joint initiative between the U.S. and the United Arab Emirates aimed at addressing climate change and global hunger through increased investment in climate-smart agriculture and food systems innovation.

Regarding reducing meat consumption, Vilsack said he had not heard much about that goal but instead emphasized strategies for reducing methane emissions related to livestock. The U.S. is taking a leadership role in methane reduction through research, feed additives, recapturing methane for energy production, and managing manure.

A Focus on Dairy to Start

Leading into the meeting, there was a lot of talk about how agriculture practices and food production may be impacted by the climate goals. And to start the meeting, dairy was on the list.

According to a report from Reuters last week, advocacy groups said that tackling livestock methane should be a major priority at this year’s COP28 summit. In addition, at the summit in Dubai this week, six of the world’s largest dairy companies announced an alliance to cut methane emissions from dairy cows.

Reuters reported members of the Dairy Methane Action Alliance include Danone, Bel Group, General Mills, Lactalis USA, Kraft Heinz and Nestle. The Alliance says it will begin reporting their methane emissions by mid-2024 and will write methane action plans by the end of that year.

While the world’s largest dairy companies are working together, it’s also sparking an argument of how essential dairy is in the diets of people around the globe.

#UN #Roadmap to 1.5 #Livestock plan unveiled at #cop28 listed in this thread.

Livestock plays a crucial economic role contributing to the livelihoods of about 1.7 billion poor people and 70 percent of those employed in the sector are women
— Steven Middendorp (@smiddendorp22) December 10, 2023

Cop28: An Explanation

What is COP28? It’s a meeting of politicians, diplomats, NGOS and representatives of national governments. There are also other stakeholders who attend to try to influence the outcome. The meeting actually dates back to June of 1992 when 154 countries signed the United Nations Framework Convention on Climate Change (UNFCCC). At the time, those countries agreed to combat human impacts on the climate.

COP meetings have been held every year since, with a different country becoming the COP president. Since that country is in charge of organizing the meeting, the host city typically moves year to year. Then, any new agreements struck from that year’s meeting, is typically named after the host city, such as the 2015 Paris Agreement and the 2021 Glasgow Climate Pact.

According to the COP28 website, the goal is to “correct course and accelerate action to tackle the climate crisis.” The website also states, “COP28 is where the world will take stock of progress on the Paris Agreement – the landmark climate treaty concluded in 2015 – and chart a course of action to dramatically reduce emissions and protect lives and livelihoods.”

The Goal

According to COP28 organizers, the science shows “to preserve a livable climate, the production of coal, oil, and gas must rapidly decline, and global renewable power capacity – including wind, solar, hydro and geothermal energy – needs to triple by 2030. At the same time, financing for adaptation and investments in climate resilience need a quantum leap.”

COP28 organizers say the goal is to create “concrete solutions to the defining issue of our time.”

Simple And Sustainable: Feeding Dairy Cows This One Ingredient Could Reduce Methane Emissions By Up To Half

Wed, 06 Dec 2023 16:09:43 GMT

From cow burps to cow manure, it’s stirred up an ongoing debate: just how much methane do cattle emit, and can it be reduced? As global dairy companies set a new goal to trace and reduce emissions, U.S. dairy farmers are already taking steps to reduce emissions. Ongoing research is also helping find ways for dairy producers to cut their emissions even more.

The statistics are still contradictory. UC Davis researchers say cows and other ruminants account for only 4% of all greenhouse gases produced in the U.S. But the United Nations’ Food and Agriculture Organization claims livestock is responsible for about 30% of global anthropogenic methane emissions. The statistics may differ, but when it comes to agriculture, livestock accounts for the majority of the methane emissions, and the work to make livestock even more sustainable is already underway.

Dairy Methane Action Alliance Sets New Goal at COP28

According to Reuters , advocacy groups have said that tackling livestock methane should be a major priority at this year’s COP28 summit. In addition, at the summit in Dubai this week, six of the world’s largest dairy companies announced an alliance to cut methane emissions from dairy cows.

Reuters reports members of the Dairy Methane Action Alliance include Danone, Bel Group, General Mills, Lactalis USA, Kraft Heinz and Nestle. The Alliance says it will begin reporting their methane emissions by mid-2024 and will write methane action plans by the end of that year.

Feeding Red Seaweed to Dairy Cows

Researchers at University of Minnesota may have a head start, as they’ve already possibly found a way to cut those emissions by up to half, and the secret to change just may be in what the cows eat.

“One of the questions we’re trying to answer is, can we reduce methane emissions in dairy cows?” says Brad Heins, University of Minnesota animal science professor of dairy production systems .

The work is focused on feeding red seaweed to dairy cows in order to reduce methane emissions. Heins says the seaweed the researchers have found to be the most effective is red seaweed located on the coast of Hawaii.

“We’re feeding it to cows to reduce methane emissions, and we hope to see at least a 40% to 50% reduction in methane of dairy cows,” says Heins.

Heins says the early results are promising.

“There’s maybe some indication that it’s working,” he adds. “We’re not quite sure on the numbers yet, but the project is still ongoing.”

Heins says the amount of methane reduced varies by timing, as well as by different types of dairy cows.

“One thing that we’ve learned is that methane is quite variable in cows,” he says. “Cows fluctuate low in the morning and higher in the evening. It’s really based on feeding times. And we’re also finding that there’s maybe some differences in dairy cow breeds when it comes to methane emissions.”

Small Amount Goes a Long Way

Heins says what University of Minnesota researchers have already uncovered is that by feeding a very small amount of red seaweed, it can help reduce the methane emissions by up to half.

“It’s actually still normal feed with a little bit of that mixed in,” says Heins. “It’s less than an ounce per cow per day. So, a very small amount that we’re feeding to cows.”

Early Results are Promising

While the early results are promising, the team is currently working with dairy farmers from across Minnesota to ground-truth what they’re seeing.

“We’re working with farmers in many different aspects, with their grazing plans, how to feed their cows more efficiently. We’re working with them on environmentally sustainable goals to help improve dairy production in Minnesota,” says Heins.

What the University of Minnesota researchers have uncovered just may be a feasible solution that won’t require any major changes. So far, the work is uncovering promising potential with big results, proving that dairy farmers can be part of the sustainable solution.

“Our goal is to help reduce methane emissions in cows, improve the overall environmental sustainability of the dairy industry in Minnesota, and we think we’ll be able to achieve that,” says Heins.

Secretary Vilsack Shares Climate Smart Agriculture Creates Enormous Opportunity for Dairy

Wed, 18 Oct 2023 21:42:42 GMT

On World Food Day, Secretary of Agriculture, Tom Vilsack, joined the stage at the 2023 International Dairy Federation World Dairy Summit in Chicago, Ill.

Secretary Vilsack told the crowd that there are four areas impacting dairy - and agriculture in general - that keep him up at night.

“Obviously at the top of the list is the impact of climate,” he said in front of an international crowd from more than 50 countries. “The impact it is having on our ability to produce more, and the challenges climate presents in making sure we remain productive as our world population increases. I’m also concerned about the conversion and consolidation that’s taking place in American agriculture.”

Vilsack shared that since 1981, the U.S. has lost more than 438,000 farms and, a decline in 230,000 dairy operations in that same period.

The third area that concerns Vilsack regarding agriculture is the concentration of income that is taking place within agriculture.

“We had a record year in farm income last year in the United States, which is oftentimes good news for a Secretary of Agriculture to deliver,” he says. However, he shared that only 7.5% of farmers received 89% of that income. “This explains why so many farmers continue to struggle,” he adds.

Vilsack also pointed out that the international crisis has caused much disruption to our supply chain.

Collaborative Togetherness

“I think climate-smart agriculture creates an enormous opportunity,” he said, sharing that U.S. farmers want a system that is both voluntary and incentive-based. We want a system that understands the market and encourages the market to recognize the contribution we’re making.”

Vilsack outlined that all in the dairy industry need to work collaboratively—from the farmers, environmental groups and conservations groups, to major food companies, retailers and universities. The effort starts with a $3 billion commitment from the USDA with funding extended to 141 projects across 87 commodities. For dairy, this totals 18 projects, like:

The California Dairy Research Foundation, $85 million to work with farmers in California dairy farmers in California to look at methane reduction technologies.
Edge Dairy Cooperative, $50 million across 18 states to look at feedstock sustainability.
Dairy Farmers of America in 14 states working to figure out a circular economy opportunity through climate-smart agriculture.

“The theory, and I believe it’s a good one, is that there are consumers in the U.S. who are interested and are willing to invest in sustainably produced products,” he said. “It’s critically important that we do the measuring, monitoring, verification and reporting of these results.”

Efforts are focused on helping farm operations regardless of their size.

“This is an exciting future for dairy and for U.S. agriculture and I think providing leadership globally,” Vilsack says.

Understanding the true volatility of the dairy economy, Vilsack underscores that nobody works harder than dairy farmers.

“And nobody cares more deeply about their farming operation, about the environment, about their community than farmers,” he said. “We’re going to continue to need for strong production from American agriculture to feed the world. But we’re also going to make sure that we create that opportunity for small and mid-sized producers so that we can remain vibrant in our rural communities.”

Is it Time to Repurpose CRP?

Tue, 11 Jul 2023 20:09:25 GMT

Dr. Carl Zulauf of Ohio State University, via a FarmDoc Daily article , writes: “A Carbon Capture CRP” initially focused on grasslands might offer more potential to capture carbon than the much debated, currently unproven carbon markets for the 318 million acres of principal crops in the U.S.”

Related story: CRP Contract Termination to Offset Global Food Crisis Gains USDA’s Approval

With the start of the new fiscal year on Oct. 1, there will be more land, 9.2 million acres, in the Grasslands CRP, a working lands program, than in other CRP components, he said. The so-called Continuous CRP, which helps landowners install practices such as windbreaks and filter strips on small pieces of land, would be as big as the General CRP, at about 8.2 million acres apiece.

Zulauf’s CRP suggestion

“This transformation, plus advances in GPS (Global Positioning Systems) and farm tillage as well as strong returns to producing crops since 2007, suggest it is time to merge General CRP and Continuous CRP into a Site Specific CRP,” said Zulauf. “Similar to Continuous CRP, Site Specific CRP would emphasize identification of sites in a field with the highest benefit-cost ratio for improving environmental quality while keeping the rest of the field in farm production.”

USDA’s New Partnerships for Climate-Smart Commodities Program Benefits Dairy

Thu, 15 Sep 2022 17:14:32 GMT

On September 14, 2022, Secretary Vilsack announced USDA is investing up to $2.8 billion in 70 selected projects under the first pool of the Partnerships for Climate-Smart Commodities funding opportunity. According to the USDA, this new program will expand markets for America’s climate-smart commodities, leverage the greenhouse gas benefits of climate-smart commodity production, and provide direct, meaningful benefits to production agriculture, including for small and underserved producers.

Several businesses within the dairy sector will receive grants to help fund future sustainability projects. Some of these businesses include:

California Dairy Research Foundation - $85 Million

This project will build climate-smart dairy markets and provide financial incentives for dairy producers to adopt climate-smart manure management practices to reduce methane emissions, leveraging matching funding from non-federal sources.

Major Commodities: Dairy

Carbon A List LLC - $70 Million

This project will focus on creating end-to-end supply chain partnerships to optimize the value of climate-smart commodities, focusing on dairy feedstock and including a manure management component.

Major Commodities: Dairy, Soy, Oats

Cooperative Regions of Organic Producer Pools - $25 Million

This project will expand climate-smart markets and help finance partnerships and incentivize farmers to advance the Organic Valley Carbon Insetting Program. Organic Valley will use two strategies to reduce supply chain emissions: mitigate greenhouse gas (GHG) emissions and maximize opportunities for carbon sequestration, focusing specifically on dairy and eggs as the climate-smart commodities.

Major Commodities: Dairy, Eggs

County of Sonoma - $10 Million

This project will build on successful carbon farming and local/regional food systems partnerships across two counties in the San Francisco Bay Area. The purpose is to expand climate-smart markets, including a regional supply chain and innovative marketing campaign for climate-smart agricultural products. This will create a scalable, regional carbon finance program that is sustainable and scale implementation for the long term.

Major Commodities: Grapes, Fruit Trees, Vegetables, Beef, Dairy, Fiber, Aquaculture, Nursery stock, Specialty Crops

Dairy Farmers of America, Inc. - $45 Million

Through this project, Dairy Farmers of America (DFA) climate-smart pilots will directly connect the on-farm greenhouse gas reductions with the low-carbon dairy market opportunity. DFA will use its cooperative business model to ensure that the collective financial benefits are captured at the farm, creating a compelling opportunity to establish a powerful self-sustaining circular economy model benefiting U.S. agriculture, including underserved producers.

Major Commodities: Dairy

Edge Dairy Farmer Cooperative - $50 Million

This project will expand climate-smart markets and establish dairy and sugar as climate-smart commodities by implementing climate-smart production practices, improving business practices for climate-smart commodities, and making use of data and information collected to inform future standards.

Major Commodities: Dairy, Sugarbeets

Farm Journal, Inc - $40 Million

This project will expand climate-smart markets for many agricultural commodities and provide direct payments, technical assistance, and data management strategies to producers of row crops, beef, dairy, pork, and other commodities to adopt climate-smart practices and strategies.

Major Commodities: Corn, Soybeans, Wheat, Cotton, Potatoes, Beef, Dairy, Pork, Small Ruminants, Specialty Crops

Maple Hill Creamery LLC - $20 Million

This project will expand climate-smart markets for dairy producers and enable a network of partners and producers to implement climate-smart practices by incentivizing implementation and providing training support. This will lead to greater environmental practices and enhanced viability for farms that implement them.

Major Commodities: Dairy

New York State Department of Environmental Conservation - $60 Million

Utilizing behavioral systems approach to break through social norms/barriers, this project will build on strong existing partnerships in the conservation and agricultural communities in NY state to expand climate-smart markets. This project will fund ag producers/forest landowners to implement multiple climate-smart agriculture (CSA) practices, utilize modern tools to quantify results of climate-smart agriculture, and build connections between landowners and companies with a demand for climate-smart commodities.

Major Commodities: Dairy, Forest Products

Pennsylvania State University- University Park - $25 Million

This project will enable partners to expand climate-smart markets and work with dairy producers in PA to implement climate-smart agriculture. An overarching goal is establishing successful and profitable partnerships between diverse producers, including underserved producers, and consumers, leading to a reduction of greenhouse gases, suppressing methane (CH4) and nitrous oxide (N2O) emissions, and storage of carbon.

Major Commodities: Dairy

Texas A & M Agrilife Research - $65 Million

This project, the Texas Climate-Smart Initiative (CSI), is a five-year multi-commodity pilot project to transition Texas’ large agricultural sector to climate-smart agriculture and forestry (CSAF) practices and develop new markets for climate-smart commodities.

Major Commodities: Cotton, Wheat, Sorghum, Corn, Rice, Vegetables, Livestock, Dairy, Forest Products, Citrus, Pecan, Olive, Grapes, Hemp

The Conservation Innovation Fund - $25 Million

This project will help expand climate-smart markets and address climate-smart plans and practices for hundreds of dairy producers and will provide an on-ramp and serve as a catalyst for additional state and private capital to bolster the implementation of whole farm plans.

Major Commodities: Dairy, Beef, Forage

The DeLong Co., Inc. - $40 Million

This project will use selected climate-smart agricultural practices to educate, train, incentivize, and measure farming practices that reduce greenhouse gases, as well as brand and develop a market for climate-smart commodities.

Major Commodities: Corn, Soybeans, Wheat, Dairy, Poultry, Beef, Pork, Specialty Crops

The University of Tennessee - $30 Million

A diverse partnership of 28 entities will develop climate-smart grasslands agriculture markets and practices for the eastern U.S. through a large-scale pilot project. The project collaborates with 245 working farms to install innovative, scientifically sound practices that improve soil carbon storage, reduce greenhouse gas emissions, and maintain operational profitability and resiliency.

Major Commodities: Beef, Small Ruminants, Dairy, Forage

The Wolfe’s Neck Farm Foundation, Inc. - $35 Million

This project will develop the systemic tools and approaches necessary to catalyze change by operating in three areas simultaneously: equipping and training Technical Service Providers for CSA implementation, creating transition finance incentives for producers, and developing a robust and self-sustaining marketplace for climate-smart commodities.

Major Commodities: Beef, Dairy, Wheat, Rice, Specialty Crops

Truterra, LLC. - $90 Million

This project, which will reach across 28 states, aims to catalyze a self-sustaining, market-based network to broaden farmer access, scale adoption of climate-smart practices, and sustainably produce grain and dairy commodities with verified and quantified climate benefits.

Major Commodities: Corn, Soybeans, Wheat, Cotton, Dairy

Virginia Polytechnic Institute and State University - $80 Million

This project will build climate-smart markets for a variety of agricultural commodities and help to make adopting climate-smart agriculture and forestry practices more economically viable for producers by compensating them at a rate that guarantees and reasonable return, with a price floor that surpasses costs.

Major Commodities: Corn, Rice, Beef, Pork, Dairy

For a complete list of the 70 selected projects, click here.

The Race is on to Build the World’s First Carbon-Neutral Dairy

Wed, 17 Mar 2021 18:58:03 GMT

It’s no secret that climate change has become a huge focus in the United States and around the world. The global dairy industry has focused in on this concern with several countries vowing to become carbon neutral within the next few decades.

For example, the Innovation Center for U.S. Dairy unveiled a ‘Net Zero Initiative’ last year in hopes of driving the industry to achieve carbon neutrality, optimized water usage and improved water quality by 2050. Similarly, Meat and Livestock Australia, which includes the dairy industry, has set a goal to become carbon neutral by 2030 “to meet consumer and community expectations.”

Recently, the country has been stricken by intense drought and extreme heat, driving the push for sustainability within agriculture. In response, government research in Victoria, Australia, has been conducted to help construct the Ellinbank “Smartfarm,” the world’s first carbon-neutral dairy farm, according to Farm Online National.

The media outlet reports that that the 500-cow farm at Ellinbank is already reputed to be Australia’s leading dairy innovation facility and has been fast-tracking innovative technologies in a research environment then showing them in a way that is accessible to the dairy industry.

Additionally, the “Smartfarm” has been funded through the government’s $115 million Agriculture Strategy, which aims to position Victoria as a leader in low-emissions agriculture and increasing the adoption of new, effective and fit for purpose technology.

Later this year, the farm will be open to visitors so farmers can witness the innovative, sustainable technology in action.

Technologies to be trialed and demonstrated at the farm include roof-mounted solar panels and battery storage, wind turbines, pumped hydro, temperature management in the dairy and the use of waste for energy, according to Farm Online National.

While there is still a long way to go in the race to become carbon-neutral, this new Australian dairy aims to hit its goal by reducing methane emissions, improving fertilizer and manure management, and by generating electricity through several options including solar, wind, hydro and bio-digestion.

Study Shows Removing Dairy Cows Would Have Minimal Impact on GHG Emissions

Thu, 07 Jan 2021 20:49:41 GMT

“Avoiding meat and dairy is the best way to reduce your impact on the climate.” “Going vegan helps save the planet.” “Animal agriculture is terrible for the environment.”

We’ve all heard these claims, and maybe even some of us have thought them to be true, but what are the facts?

According to the American Dairy Science Association (ADSA), the U.S. dairy industry contributes roughly 1.58% of the total U.S. greenhouse gas emissions; however, it also supplies the protein requirements of 169 million people, calcium requirements of 254 million people, and energy requirements of 71.2 million people.

As greenhouse gas emissions have continued to grow over the years, one commonly suggested solution to reduce greenhouse gas output has been to reduce or eliminate the dairy industry in favor of plant production.

However, recent research from Virginia Tech disputes that notion.

“There are environmental impacts associated with the production of food, period. The dairy industry does have an environmental impact, but if you look at it in the context of the entire U.S. enterprise, it’s fairly minimal,” said Robin White, an associate professor in the Department of Animal and Poultry Sciences and a member of the research team. “Associated with that minimal impact is a very substantial provision of high quality, digestible, and well-balanced nutrients for human consumption.”

The authors of this study assessed three removal scenarios—depopulation, current management (export dairy), and retirement, according to the ADSA. In depopulation, consumers would stop consuming dairy products, resulting in depopulation of the animals; in current management (export dairy), the cattle management would remain the same and milk produced would be used for products other than human food or exported for human consumption; in retirement, the cattle would be retired to a pasture-based system but reduced to numbers that could be supported by available pastureland.

“Land use was a focus in all animal removal scenarios because the assumptions surrounding how to use land made available if we remove dairy cattle greatly influence results of the simulations,” White said. “If dairy cattle are no longer present in U.S. agriculture, we must consider downstream effects, such as handling of pasture and grain land previously used for producing dairy feed, disposition of byproduct feeds, and sourcing fertilizer.”

At the conclusion of the study, the scientists found that the removal of dairy cattle from U.S. agriculture would only reduce greenhouse gas emissions by 0.7% Additionally, greenhouse gas emissions remained unchanged under the current management (export dairy) scenario.

Under the retirement and depopulation scenarios, greenhouse gas emissions declined 11.97% and 7.2% respectively. However, this small dip in greenhouse gas emissions came at the price of a large nutritional gap for consumers.

According to Virginia Tech, all 39 nutrients considered in human diet quality were decreased for the retired scenario, and although 30 of 39 nutrients increased for the depopulation scenario, several essential nutrients declined.

“Production of some essential nutrients, such as calcium and many vitamins, decreased under all reallocation scenarios that decreased greenhouse gas emissions, making the dairy removal scenarios suboptimal for feeding the U.S, population,” White says.

Water Problems Creep Across the U.S.

Fri, 20 Nov 2020 05:31:41 GMT

More than ever, water is the tension bar between agriculture and society. Urban centers desperately need more of it to satisfy an increasing population. Farmers require it to produce the food for all those people.

With the Earth’s water supply finite but demands for it ever escalating, conflicts about water are becoming commonplace. Farm Journal is committed to covering agriculture’s role in this clash. The story below about water problems on farms in eastern Colorado is the first in what will be an ongoing series that promises to touch every corner of the nation.

Caught in a devastating three-year drought, state and federal water agencies in California say they will cut deliveries to farmers in much of the San Joaquin Valley by at least 85% this year. That will idle land and result in 40,000 lost jobs and $1.5 billion in income, says Richard Howitt, chair of the Agriculture and Resource Economics Department at University of California–Davis. In addition, the nation’s food security could be compromised because that region produces half our fruits, nuts and vegetables, along with other crops, such as cotton, wheat and potatoes.

The Ogallala Aquifer, which supports millions of acres of crops in eight Plains states, continues to decline. From the late 1940s, when farmers began irrigating in the Texas Panhandle, until 1980, portions of the aquifer dropped 100' and will fall another 100' by 2020, says Jim Goeke, University of Nebraska hydrogeologist. In Nebraska, the Department of Natural Resources recently issued a preliminary ruling that the Lower Platte River Basin appears “fully appropriated.” That could lead to a moratorium on new irrigation wells.

Texas, now in the midst of a long-term drought killing both crops and cattle, faces big problems. Nearly the entire state is in some stage of drought, according to the most recent U.S. Drought Monitor maps. A new report by Susan Combs, Texas state comptroller, projects the state’s popu-lation will double to more than 46 million by 2060, boosting water demand by about 27%. The water shortage could cost Texans about $9 billion next year and more than $98 billion by 2060, the report says. Combs calls for new water management strategies to deal with the crisis.

The Southeast, after several dry years, is no longer assured of consistent rainfall. That puts the city of Atlanta and its fast-growing suburbs in conflict with farmers as well as surrounding states. Even oystermen on Florida’s Gulf Coast complained as fresh water supply dwindled in Apalachicola Bay, which produces 90% of the state’s renowned oysters. In February, Georgia’s Gov. Sonny Perdue appointed 300 people, including farmers, to 10 regional water planning boards to monitor the situation.

Shortage of water isn’t the only difficulty facing agriculture. Quality is an issue in many watersheds and streams across the country. North Carolinians, among others, deal with ongoing battles regarding hog lagoons. Farmers in the Chesapeake Bay watershed have had to change management practices to rehabilitate its water, long important for fishing and recreation. Florida’s farmers and ranchers are dealing with stringent environmental regulations designed to protect sensitive wildlife habitat. In many other areas, farmers and ranchers are devising ways to protect watersheds and lakes with innovative fencing for livestock and conservation tillage for crops.

With our new series, we at Farm Journal will not only outline the problems but pledge to also look for answers that can help farmers and ranchers overcome this threat to their livelihoods and legacies. Technology already offers some possibilities: irrigation refinements that reduce water usage and drought-tolerant hybrids, to name just two.

Water is the overriding concern for farmers, ranchers and society as a whole. Without workable solutions, everyone loses. Share your thoughts and let us know about water
issues in your area. We want to hear from you.

Colorado’s Water War

For Darrell and Cindy Johnston, 2002 was the turning point. The worst drought in memory shattered hopes of a profit on their farm in Erie, Colo.

“We didn’t get any moisture. Snowpack was way down. We planted bone-dry. Crops sat waiting for rain. Water was allo-cated, and we had to decide which crops to irrigate. We burned our water up getting the crop up, then we were out of water. So we didn’t have a crop,” Darrell says.

The future didn’t look much better, either. Located on the Front Range just north of the Denver metropolitan area near I-25, with water supply both short and at a premium due to booming development, the Johnstons decided moving was their best option.

“When the drought hit, farms went from irrigated to dryland overnight. The problem in Erie is that the cities have control of the water and dictate how much we get. It’s been going on for 10 years now,” Darrell says.

Though they had both grown up in the area, the Johnstons sold some of their more valuable land near the interstate. They bought land with a more assured water supply 70 miles away in Fort Morgan, Colo., using an Internal Revenue Service Section 1031 Exchange to postpone capital gains taxes. They grow corn and sugar beets on the 700 acres in Fort Morgan and wheat, barley and hay crops requiring less water on the original 2,700-acre farm, which is now managed by their 23-year-old son, Brandon.

“Buying land in Fort Morgan is the hardest decision we ever made. But if we’re going to farm, we have to have water. When the 2002 drought hit, it was eye-opening to know we did not have water to irrigate,” Cindy says.

Lots of other Colorado farmers are seeing their worlds rocked in much the same fashion. In addition to the competition for water with cities on the Front Range, eastern Colorado farmers in the Republican River Basin and the South Platte River Basin have their own serious problems.

Four hundred irrigation wells in the Republican River Basin were recently shut down to comply with a settlement involving a Kansas lawsuit that requires certain flow levels. In the South Platte River Basin, pumping from as many as 4,000 wells has been limited or curtailed due to a plan to recharge the river’s water and comply with the Endangered Species Act, says James Pritchett, a Colorado State University ag economist working on water issues.

“Crop acreage has gone from 3 million to 2½ million. We’re likely to lose 250,000 acres in the South Platte, where we’re at 1 million acres now,” Pritchett says. “We’ve been depleting the aquifer at an unsustainable rate. Within one generation, we’ll have to find a way to continue agriculture in that area with less water.”

So far, farmers losing wells have gotten little compensation. “On the South Platte, they are not compensated. They are literally high and dry. On the Republican, these are voluntary measures through CREP [Conservation Reserve Enhancement Program] and EQIP [Environmental Quality Incentives Program], a token compensation nowhere close to what they could make from full production,” says Mark Sponsler, executive director of the Colorado Corn Growers Association.

Those economics won’t pencil out long-term for farmers caught in the 21st century water wars. The Johnstons enjoy farming their new Fort Morgan land but warily eye what’s happening to other producers.

“I just cannot comprehend that government can say, ‘Sorry, you’re done, too bad.’ A judge held the fate of all those people’s lives,” Cindy says.

You can e-mail Charles Johnson at cjohnson@farmjournal.com .

Families Join Forces and Form MVP Dairy

Fri, 20 Nov 2020 03:05:26 GMT

Western Ohio’s MVP Dairy takes an innovate approach to business

For decades, the VanTilburg family of western Ohio has made stewardship their No. 1 priority. They started with no-till, then moved into cover crops and continued to evolve their farming practices even though financial incentive was minimal.

The family was ready to exit the commodity market roller coaster, which they saw as the only path for their commitment to stewardship to make financial sense.

“Five or six years ago, my brothers and I were looking to get out of the big swings of the commodity market,” says Kyle VanTilburg. “We’d been doing regenerative-type agricultural practices for years, seeing the agronomic benefit but not really the financial benefit.”

While researching ideas, the family discovered Dannon could offer financial incentive for the stewardship practices they were already implementing on their farm.

“Dannon wanted transparency to show where their yogurt comes from — basically from soil to cup. We were doing a lot of the practices on-farm they were looking for,” VanTilburg explains.

There was a problem: The VanTilburgs weren’t dairy farmers.

By chance, the VanTilburgs, which includes three brothers, met the four McCarty brothers from Kansas at a farm sale in Ohio. The McCarty family was looking for land in Ohio and the VanTilburgs were looking for an avenue to enter the dairy business.

The McCartys had been in a relationship with Dannon since 2010 and were hoping to expand their business into other milk sheds. At the same time, the Dannon plant in Ohio was looking to move into the non-GMO market.

The VanTilburgs and McCartys formed a partnership: MVP Dairy. The two families are separated by thousands of miles but joined by their business priorities. Their commitment to regenerative ag is now paying off in spades through a non-GMO contract with Dannon.

MVP Dairy. The first cows at MVP Dairy were milked in November 2018. Today 4,500 cows live in six freestall barns. The operation is home to a range of technology from activity monitors to manure separators.

On the crop side, the partnership uses a variety of sustainable farming practices to take care of the environment and maximize return on the 4,500 acres they farm. The MVP team uses cover crops on 95% of their fields, no-till methods, grid soil sampling, grass filter strips along open ditches, precision irrigation and variable-rate nutrient application technology.

Both families have an unwavering commitment to sustainability.

“Sustainability, whether environmental, community or business, has always been a keystone principle for our business,” says Ken McCarty. “We were inspired the VanTilburg family shares those same values.”

While the challenges vary in Ohio versus Kansas, McCarty says the core principles of caring about water, soil health, animal welfare, community well-being and employees all still hold true.

“The reality is sustainability is important for many reasons,” he says. “We depend on the communities we live in to sustain us, so it’s imperative we sustain them. We depend on all the team members we work with every day. So, it’s important that we take care of them. Especially when you consider we hold our farms to very high standards. It takes a lot of people to do what we do, but it takes even more people to do what we do to the standard we want them to do it.”

Dial in the Details. Attention to detail is fundamental on MVP Dairy. The team uses an abundance of technology and data to direct each and every decision.

“By paying attention to details, allowing those details to influence the data and letting the data drive the decisions, it allows us to run

our farm with confidence, and it also solidifies our relationships,” McCarty explains.

Like the other dairies the McCarty family owns, MVP uses a remote video monitoring program.

“Those cameras are our monitor at random 24/7, and every week we receive reports detailing good things and bad things they’ve recorded,” McCarty says.

At the end of the day, everything at MVP dairy is intended to ensure safety and welfare of the animals and employees, McCarty says.

“We’re trying to make our farm better and ultimately our cows happier,” he says.

LEFT: VanTilburg Farms, based in Celina, Ohio, is led by (from left) Luke, Kyle and Matt VanTilburg. The operation includes 4,500 acres of row crops, trucking, ag retail, crop insurance and excavation.

RIGHT: McCarty Family Farms, based in Colby, Kan., is led by four brothers (from left) Clay, David, Ken and Mike McCarty. The operation includes four dairy sites in Kansas and Nebraska, which in total are home to 8,100 dairy cows.

MVP Dairy is a partnership, which formed in 2017, between the McCarty and VanTilburg families. The operation in Mercer County, Ohio, sells milk directly to Dannon and is under the oversight of general manager, Brock Peters.

Open to the Public

In the process of building MVP Dairy, the community raised a lot of questions and concerns. To engage the community and let others see ﬁ rsthand what’s happening on the farm, the team built the Dairy Learning Center.

When the public and elementary school classes visit, they see the cows being milked. They also learn more about the partnership and farming practices through interactive displays, says Allison Ryan, director of mar-keting and communications at MVP Dairy.

Visitors can experience virtual reality stations that give them access to the freestall barns and lets them try their hand at virtually milking cows. The experience concludes with an interactive grocery store display.

7 Traits of a Good Parntership

The McCarty and VanTilburg families credit their success at MVP Dairy to their solid partnership. If you’re looking to expand your farm operation through partnerships, carefully select your partner, advises Elinor Robin, a mediator who specializes in workplace and family conflict management. Find people who fit these characteristics:

You genuinely enjoy, like and trust.
Shares your values.
Has a complementary set of skills and traits.
Gives and takes.
Wants to grow and will support your growth.
Is willing to engage in proactive conflict management.
Can share your vision.

To learn more about MVP Dairy and their community outreach efforts, visit AgWeb.com/MVP-Dairy

Conservation Can Put Dollars In Dairy Farmers’ Pockets, Report Shows

Thu, 12 Nov 2020 05:55:56 GMT

A new report released on Monday, How conservation makes dairy farms more resilient, especially in a lean agricultural economy, addresses the successful adoption of conservation measures by four Pennsylvania dairy farmers.

Equally important, the report shows how financial and technical support provided by a loose coalition of partners in the food industry supply chain and others helped the farmers successfully bridge the divide that often exists between adopting conservation measures and making a return-on-investment.

“The farmers that we worked with all experienced savings and reduced costs based on labor, fuel costs, as well as improved herd health,” says Chris Sigmund, president of TeamAg Inc., an agriculture consulting firm in Pennsylvania with expertise in securing funding.

The Environmental Defense Fund and K·Coe Isom partnered to develop the report, which is available here: https://bit.ly/2qA9Z6n

Some of the key savings, by farmer, include:

Farmer A experienced several economic benefits from implementing conservation practices with assistance from EQIP and Ducks Unlimited. • A manure separator delivered significant benefits, including reduced mastitis, reduced bedding costs and reduced mortality. Cost savings included $1,000 per week in bedding costs, $51,000 per year in veterinary costs and $7,225 per year in reduced mortality.

Farmer B observed immediate water quality impacts from implementing low-cost conservation measures like no-till. • Farmer B experienced a significant yield increase from implementing no-till, which eliminated his need to purchase nearly $15,000 in feed per year. • Farmer B saw a reduction in veterinary visits and bills due to improved feed quality estimated at $2,000-3,000 per year.

Farmer C’s case provides an example of the significant value that grant and cost share programs like PennVest and NRCS’s EQIP program can provide by enabling farmers to implement these key conservation infrastructure projects.• Manure storage made a huge difference in Farmer C’s ability to get value out of manure, apply it when needed and when environmentally appropriate, and save on purchased feed by boosting yield.

Farmer D gained substantial monthly savings from some of his larger conservation implementations such as an anaerobic digester and manure separator, including 25,000 kW of energy per month from the digester and monthly savings of more than $3,000 from not buying wood shavings for bedding from the separator. • Transitioning to no-till led to numerous benefits, including estimated labor cost savings of $44,100 per year and fuel cost savings of $2,625 per year.

Case studies were done with each of the four farmers—whose operations vary from milking 40 cows to 750 cows. The studies focused on five of the most common conservation practices for reducing soil erosion and nutrient loss from dairy farms in Pennsylvania: manure storage, stream fencing, cover crops, conservation tillage and nutrient management.

Each of the farmers adopted one or more of the practices, which were implemented based on their respective conservation and nutrient management plans. The plans were the first thing each of the farms developed or refined, according to Lindsay Reames, with the Maryland and Virginia Milk Producers Cooperative Association.

She notes that, in her experience, dairy farmers often see the conservation gaps that exist on their operations – where they currently stand in the process of implementing measures that improve soil health and water quality and where they want to be. In that no-man’s land of the middle are the hurdles that dairy farmers often have to bridge to reach their conservation goals. These include contradictory or burdensome legislative policies, cumbersome application processes and paperwork, and high levels of out-of-pocket costs on the front end.

To that end, a number of groups and individuals helped the farmers, essentially funding 100% of the cost of the conservation and nutrient plans, for starters.

“Through the partnership with Turkey Hill Dairy and the Alliance for the Chesapeake Bay, we were able to get a conservation innovation grant for just under half a million dollars,” Reames adds.

With Sigmund and TeamAg’s help, additional funding totaling $1.5 million was secured for adopting conservation measures.

“We’re using that directly on our member farms to invest in practices such as manure storage, barnyard stabilization, planting buffers and other practices,” Reames says. “They’re going to directly impact the local streams and waterways within the community and downstream improve the quality of the Chesapeake Bay Watershed,” she adds

The Chesapeake Bay is a 64,299-square-mile drainage basin spanning six states and supporting a vibrant regional economy. Some researchers say the biggest threat to the bay’s long-term economic and environmental viability is pollution from rivers and streams, largely from nutrient and sediment runoff from farms.

The final analysis of the four case studies shows the economic benefits conservation practices can provide when viewed across the full farm budget, incorporating labor, herd health and yield impacts over time, and highlights the importance of good recordkeeping to take full advantage of economic benefits.

The report on the studies was a key topic of discussion at the Sustainable Agriculture Summit happening in Indianapolis this week, where the state’s dairy industry has grown aggressively in recent years including the arrival of Walmart’s first-ever milk facility in the state last year.

Financial support for the study was provided by The Campbell Foundation.

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Trusteed IRAs: why they are popular, who should consider them, what benefits they offer

Fri, 23 Sep 2022 20:01:45 GMT

Q: I’ve heard a lot about trusteed IRAs. How do they differ from traditional IRAs?

A: Simply put, trusteed IRAs offer potential tax benefits of traditional or Roth IRAs with the protection and control of a trust. They provide tax advantages that stretch into the future and offer the ability to control how, when and in what amounts assets are distributed. Trusteed IRAs have become more popular given some of the inherent limits of traditional IRAs and the growing prevalence of self-directed retirement accounts combined with the decline of pension plans. They also are more cost-effective than setting up a trust and are generally more compliant with tax laws.

Q: Who should consider a trusteed IRA?

A: There are several reasons why someone should consider a trusteed IRA, the most consequential of which is if an owner has an interest in controlling assets and realizing tax benefits beyond their lifetime. This can mean an owner is concerned with the financial discipline or sophistication of heirs.

Other reasons include if an owner remarries and wants to provide for a current spouse as well as children from a previous relationship and/or is concerned about IRA management in the event of incapacitation.

Q: I’m in the middle of estate planning. How can a trusteed IRA help with the process?

A: They can help process if only to preserve the potential tax-advantaged accumulation of IRA benefits to pass on to heirs. Under traditional or custodial IRAs, a beneficiary is required to withdraw at least the Required Minimum Distribution (RMD) each year. However, a beneficiary may withdraw additional amounts, for any reason, at any time—and incur possible fees or tax penalties.

Additionally, owners can restrict payouts to a beneficiary to the RMD, enabling it to operate as a spendthrift trust. At the owner’s death, the trusteed IRA would be automatically split into separate accounts for individual beneficiaries, with distribution terms defined for each account.

Another benefit is that estate plans don’t need to be rewritten or updated; trusteed IRAs can be added independent of an estate plan to protect IRA assets which legally pass outside of wills.

Q: Is a trusteed IRA better suited to farmers or owners of farm assets?

A: Not expressly, but a trusteed IRA can play an important role in legacy planning and preservation of farm assets over multiple generations. Given the growing generation gap among farming families, trusteed IRAs could be a way help preserve farm family values over generations from beyond the grave. Moreover, as farm economics continues to change, farmers may find value in the highly customizable nature of trusteed IRAs. In the event of a divorce in the family, for example, assets can be made to not leave the family’s bloodlines.

Q: Are there any downsides to trusteed IRAs?

A: Given that a trusteed IRA requires a corporate trustee, it’s harder to change ownership and family members cannot be named as trustees. Not all financial institutions offer trusteed IRAs so they may not be widely available to interested clients. Additionally, while they offer greater customization and more control, trusteed IRAs carry some limits. To have the highest level of customization and control, a trust would need to be created.

Please send questions, comments or requests to address a topic or issue to Rees Mason at rees.mason@ml.com.