USDA outlines market-based climate approach

Published 9:15 am Tuesday, September 28, 2021

While the European Union is mandating certain agricultural practices and prohibiting others to meet its goals for mitigating climate change, the U.S. is taking a different route.

“We think that a market-based, voluntary, incentive-based approach works best with our farmers,” USDA Secretary Tom Vilsack said in a webinar during the National Farmers Union’s virtual legislative fly-in.

USDA has listened closely to what farmers think and feel about climate-smart agriculture and how USDA can structure its approach to be most beneficial to them, he said.

With more consumers wanting to make sure their food decisions are not contributing to greenhouse gas emission, USDA sees a market opportunity for verifiable sustainable products, he said.

“We think there’s a value-added proposition there, and we want farmers to be able to take full advantage of that value-added opportunity,” he said.

Measuring and quantifying positive impacts will not only allow farmers to take advantage of that market opportunity but allow them to participate in carbon and other markets without necessarily incurring substantial cost.

But there is a financial risk associated with certain practices or buying certain technologies, he said.

“That costs money. And the reality is that’s risky, especially when margins are so tight already,” he said.

USDA wants to be able to reduce the risk, he said.

“There are a lot of different ways to do this, a lot of different practices and a lot of different approaches. We want to make sure that we are derisking all of those approaches,” he said.

USDA is already engaged in several areas related to climate, such as methane digesters, energy efficiency, conservation programs, research and technical support.

There are roughly 45 agricultural practices that work in mitigating climate change, and USDA wants to make sure those practices are encouraged. It is also looking for other ways to provide financial resources, verification and credibility while giving farmers the ability to voluntarily engage, he said.

“I believe that when we do this, do it right, agriculture will be at the forefront of real aggressive action in terms of climate,” he said.

USDA will be laying out its efforts in greater detail this week in Colorado, and Vilsack hopes farmers will feel USDA listened to their concerns and needs.

USDA understands it’s about pilots, partnerships, listening to farmers and reducing the risks associated with climate-smart agriculture, he said.

Robert Bonnie, deputy chief of staff and senior climate adviser at USDA, said there’s a lot of alignment between climate and agriculture.

“To take advantage of that, we need to make sure that whatever we do works for producers, works for agriculture,” he said.

So it’s important to design incentives and other opportunities in a way that fits into producers’ existing operations, and USDA is looking for ways to create more market opportunity, he said.

Climate-smart agriculture isn’t just about mitigation, it’s also about resiliency, he said.

“It’s making sure we provide good information and help for producers that help make sure their operations are more resilient,” he said.

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