How USDA's $2.8 Billion Climate-Smart Investment Might Impact Your Operation

The projects, which seek funds ranging from $5 million to $100 million, including everything from building carbon markets to flood control.
The projects, which seek funds ranging from $5 million to $100 million, including everything from building carbon markets to flood control.
(USDA)

After months of talking about climate-smart agriculture and working with a handful of funding recipients, USDA is now investing up to $2.8 billion in 70 projects under the first Partnerships for Climate-Smart Commodities funding pool. The projects, which seek funds ranging from $5 million to $100 million, include everything from flood control to building carbon markets.

After sifting through 450 proposals, USDA’s Partnerships for Climate-Smart Commodities funding recipients include:

  • Government entities
  • Farmer coops
  • Conservation, energy and environmental groups
  • Universities
  • Small businesses
  • Large corporations
     

Trust In Food™, the sustainability division of Farm Journal, is among the USDA Partnerships for Climate-Smart Commodities project recipients for its coalition-driven Connected Ag Project.

The Impact of USDA Climate Funding

According to Tom Vilsack, USDA secretary, these efforts will “increase the competitive advantage of U.S. agriculture both domestically and internationally,” while building wealth in rural America.

“Through today’s announcement of initial selections for the Partnerships for Climate-Smart Commodities, USDA is delivering on our promise to build and expand these market opportunities for American agriculture and be global leaders in climate-smart agricultural production,” he says. 

USDA’s press release says, from the funding, farmers can expect:

1.  Technical and financial assistance to implement voluntary climate-smart practices.

2.  Methods to quantify, monitor, report and verify greenhouse gas benefits.

3.  New markets and promotion in climate-smart commodities.

With this new funding in place, USDA anticipates the projects will:

  • Provide hundreds of expanded markets and revenue streams for producers and commodities ranging from traditional corn to specialty crops.
  • Reach more than 50,000 farms, encompassing 20 to 25 million acres of working land engaged in climate-smart production practices such as cover crops, no-till and nutrient management.
  • Sequester upward of 50 million metric tons of carbon dioxide equivalent over the lives of the projects. This is equivalent to removing more than 10 million gasoline-powered passenger vehicles from the road for one year.
  • Engage more than 50 universities to help advance projects, especially with outreach and monitoring, measurement, reporting and verification.


Proposals for the 70 projects include plans to match 50% of the federal investment with nonfederal funds.

Who Will Provide the Funds?

The Partnerships for Climate-Smart Commodities funding will be pulled from USDA’s Commodity Credit Corporation (CCC) funds in two pools. USDA says the projects announced today are part of the first funding pool.

The CCC has been tapped numerous times in the past year, such as a March announcement to put $250 million toward American-made fertilizer to give U.S. farmers more choices in the marketplace. Some, including Jim Wiesemeyer, Pro Farmer policy analyst, feel the CCC is more of an “ATM machine for aggies” than a tool used to stabilize, support and protect farm income and prices, as it was originally created for.

When asked about why USDA chose to pull more funds from the CCC, Vilsack said it was a matter of timing.

“We track expenditures from the CCC on a monthly basis. We are within a couple of weeks from the end of the fiscal year and there are significant resources left in the CCC account,” he says. “We won’t require any action from Congress to replenish the CCC. We will be able to adequately fund this initiative, as well as some nutrition announcements made today, and still have billions of dollars left in reserve in the account through the remainder of the fiscal year.” 

The Agency says the second funding pool will be announced later this year.

How Funds Will Be Used

In the first pool of funding, numerous projects were selected with funding ceilings from $70 to $95 million. According to USDA, some of the individual projects that will span several states include: 

1. Climate SMART (Scaling Mechanisms for Agriculture’s Regenerative Transformation), led by Truterra, LLC

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.

2. The Climate-Smart Agriculture Innovative Finance Initiative, led by Field to Market

This project, covering more than 30 states, will use innovative finance mechanisms to accelerate climate-smart practice uptake by farmers, leveraging private sector demand to strengthen markets for climate-smart commodities. Partners will provide technical assistance and additional financial incentives to an array of producers across commodities, tying climate-smart practices to commodity purchases and creating a scalable model for private sector investment.

3. Connected Ag Climate-Smart Commodities Pilot Project, led by Farm Journal, Inc.

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

4. Scaling Methane Emissions Reductions and Soil Carbon Sequestration, led by the Dairy Farmers of America, Inc.

Through this project, Dairy Farmers of America (DFA) climate-smart pilots will directly connect on-farm greenhouse gas reductions with the low-carbon dairy market. DFA will use its cooperative business model to ensure 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.

5. The Soil Inventory Project Partnership for Impact and Demand, led by The Meridian Institute

This project will build climate-smart markets, streamline field data collection and combine sample results with modeling to make impact quantifications accurate and locally specific but also scalable. Targeted farms produce value-added and direct-to-consumer specialty crops as well as the 19 most common row crops in the U.S.

Details on the other projects can be found here

More on ag policy: 

Biden Administration Presses Unions, Railroads to Avoid Shutdown

More than Hangry: What’s Really at Stake in Global Food Insecurity?
 

 

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