FARMERS RESPOND TO CLIMATE CHANGE

with Sustainable Agriculture

BY DAVID WHITE, ACCOUNT MANAGER FINANCIAL SERVICES AND GOVERNMENT RELATIONS

Remember when the national buzz phrase was “It’s all about the economy”? Now, with the new administration in Washington, D.C., today’s phrase may very well be “It’s all about climate.”

From the earliest days of man, farmers have contended with local climate conditions, day-to-day weather events and natural disasters. While this is nothing new, climate change is making it increasingly difficult to predict

DAVID WHITE how farmers should manage their crops, livestock and land. As decision-makers managing more than 37% of the Earth’s landmass, farmers are uniquely positioned to contribute to climate change solutions. Associations within the Farm Credit System, which includes AgCredit, understand agriculture and are dedicated to providing farmers the support they need to implement sustainable agriculture practices. That’s because many of our committed team members either farm today or grew up in agriculture. They typically live in the same communities they serve and have first-hand knowledge of the business decisions their customers face. When it comes to environmental sustainability, the Farm Credit System supports farmers as they integrate climatesmart agricultural practices into their business plans. Farm Credit System institutions also proudly participate in cost-share programs created by the U.S. Department of Agriculture’s Natural Resources Conservation Service to support the adoption of conservation practices. Understanding the intricacies of financing conservation agriculture, Farm Credit lenders work with farmers to allow longer loan amortization terms when they adopt such programs. This allows farmers the time they need to recover the investment costs. We follow a similar approach for customers hoping to implement other climate-smart agriculture practices. Farm Credit’s cooperative structure ensures a commitment to sustainability, and our success depends on the viability of farmers for generations to come. At the end of each year, Farm Credit System institutions’ net income is only used in two ways: It’s either retained within Associations to build financial strength or it’s passed on to customers by way of patronage dividends. The dividends lower the cost of borrowing money, and farmers can use those savings for transitioning or continuing to implement climate-smart practices. At Farm Credit, we also strive to educate our members and staff on the latest research. We provide educational programs and networking events that focus on economics, business planning, data, markets and more. In the face of challenges and opportunities climate change presents, Farm Credit’s mission to support rural communities and agriculture with reliable, consistent credit and financial services is more critical than ever. Regardless of what may lie ahead in the years to come, Farm Credit is committed to standing with America’s farmers and ranchers, in good times and bad, as we work together to achieve and maintain a sustainable future for our industry. At a national level, the Farm Credit Council, the trade organization representing Farm Credit Associations throughout the country, has joined the Food and Agriculture Climate Alliance. This coalition brings together food, agriculture, forestry and environmental groups to discuss and develop policy to address climate change. At the local level, we lend to farmers who use climate-smart agriculture practices. Farmers are the original stewards of the land, leading the way in many aspects. Farm Credit supports them investing in those efforts today, just as we have for over 100 years. Every day, America’s farmers and ranchers explore ways to improve their soil, reduce irrigation and other inputs, transition to organic production or implement renewable energy sources on their farms. From planting cover crops and crop rotation, to conservation tillage and other regenerative practices, these environmentally sustainable practices benefit farmers, the land they operate and their local communities. These common-sense practices also make agriculture more resilient to climate risks.

You have a partner with your Farm Credit System institution, AgCredit. When our account officers visit with our customers, it’s an exciting reminder of the ingenuity and dedication of America’s farmers and ranchers.