America’s Farms: Water Risk and Opportunity in the Agricultural Supply Chain.

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Perspectives

America’s Farms: Water Risk and Opportunity in the Agricultural Supply Chain by Kirsten James

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armers are the foundation of our $5 trillion global food system, responsible for growing the wheat, corn, soy and other agricultural commodities at the core of global supply chains. However, the agricultural industry is facing an imminent problem that threatens its ability to provide these essential crops: stressed water resources. Growing and processing food is a thirsty business, consuming more than 70% of the world’s water resources. The intensifying effects of climate change are placing an unprecedented strain on our water supply as the water cycle is inextricably linked to the changing climate. Between 1980 and 2013, the US suffered more than $260B in flood related damages and the 2019 flooding of the Mississippi river alone, which lasted 107 consecutive days, has caused over $2 billion in damages. 2020 has already brought with it record floods in parts of Mississippi. The future of America’s farms and the global food system is grim without definitive systemic action. In fact, $415 billion in revenue may be at risk for food companies from lack of available water for irrigation or livestock production, and $248 billion is at risk from climate change affecting crop production, according to a recent analysis by MSCI.

14  | Solutions |  Spring 2020  | www.thesolutionsjournal.com

Why should food companies invest in their supply chain? Soil health is arguably the most important indicator of agricultural resilience to drought and floods. As the buyers of key agricultural commodities, food companies have a responsibility to help farmers transition to sustainable farming practices and create resilient agricultural supply chains. This transition is also a critical component of meeting existing and future corporate sustainable sourcing goals. While a majority of companies are providing some level of educational support to growers through agronomic tools and training programs, critical direct and in-direct financial support is lacking. Less than half of the 40 food and beverage companies evaluated in the Ceres 2019 Feeding Ourselves Thirsty report, a benchmarking analysis and investor tool on the food sector’s response


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America’s Farms: Water Risk and Opportunity in the Agricultural Supply Chain. by The Solutions Journal - Issuu