By Heather Gieseke
When it comes to sustainability initiatives, many farmers believe it’s politics driving carbon strategies and programs.
True, climate change and politics have become interconnected. Climate-smart grants, for example, have incentivized businesses to reduce carbon emissions.
But it’s consumers inducing U.S. companies to carry out these initiatives. Today’s shoppers want to know about the climate impacts or the humanitarian elements behind how their food is grown or services are delivered.
Purchasing Power Change
Sustainability is also important among younger generations, who will soon have most of the purchasing power in the U.S.
“Companies that understand these trends, and create truly sustainable brands that make good on their promises to people and the planet, will seize advantage from brands that make flimsy claims or have not invested sufficiently in sustainability,” reports the Harvard Business Review.
Products making environmental, social and governance-related claims averaged 28% cumulative growth between 2018 to 2022, versus 20% for products that didn’t, according to McKinsey & Company.
It’s important to note these sustainability initiatives are completely voluntary. They’re not being driven by government requirements but by consumer trends. That should give farmers more confidence in the increased opportunities ahead for incorporating climate-smart practices.
Pay-Off for Farmers
It’s also important to keep in mind there are additional rewards beyond reducing emissions or taking advantage of government programs or supply-chain premiums. Sustainability practices take time, learning and adjustment, but they can bring significant on-farm benefits, such as soil health, improved water quality and availability, reduced expenses and, ultimately, greater productivity on your farm.
The shift in purchasing power, the drive for transparency and the growing passion for food’s journey is certain to continue driving increased demand for sustainable products that are more than just a label. Increased transparency across the supply chain is resulting in meaningful and measurable stories of how sustainable, climate-smart products are better than their less sustainable counterparts.
Farmers should be increasingly aware of how you, too, can create your own measurable stories, whether it’s selling carbon offsets you’re generating on your farm or earning premiums for grain produced with fewer emissions than your neighbor down the road.
These changes are valuable both on and off the farm and will continue to be there in the future.
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?
