Key Takeaways
- Sustainable Agriculture: The United Nations estimates greener farming practices use 56% less energy for each crop cultivated and create 64% fewer carbon emissions per hectare.
- Financing is needed to close the gap between agriculture emissions and sustainable development.
- Farmers have several grant and agricultural fund options to help finance the development of eco-conscious production methods.
Agriculture has received flak in recent years for its slew of unsustainable practices. However, transitioning to eco-friendly methods of farming and livestock rearing requires substantial funding, especially with the rising global food demand.
Governments and private organizations worldwide are rising to the challenge of bridging the financing gap to meet sustainability targets in food production. Here’s what to know about sustainable agriculture funding in 2024.
The Current Landscape of Agriculture
The agricultural landscape is undergoing growth in sustainable practices, technology adoption and increased consumer awareness of food sources and quality. This shift is long overdue, given the wide-scale impact of current operations on the environment.
Global agrifood systems account for around 70% of freshwater withdrawals and one-third of all emissions. Land degradation, biodiversity loss and food waste also add to the industry’s massive carbon footprint. With the world’s population expected to reach 9.7 billion by 2050, the time for significant climate mitigation action and more eco-friendly food production is now.
Financing Requirements for a Greener Industry
Recent estimates indicate a $260 billion investment gap in agriculture to meet the sustainable development goals in developing countries by 2030. An average of $711 billion is needed annually to reverse the decline in biodiversity over the same period. Other financing requirements include the cost of adopting renewable energy for farming operations and transportation.
However, one of the biggest obstacles is the higher price of sustainable agriculture products. In a highly volatile economy fueled by fluctuating inflation and interest rates, many people avoid spending more for sustainably sourced food items. As a result, the costs associated with these products’ production, transportation and marketing are often comparatively high.
Sustainable Agriculture Funding in 2024
Over the long term, sustainable agriculture is better for farmers’ bottom lines, producing greater yields and protecting the planet — but how can they afford to change? Several options are available to farmers interested in incorporating greener practices into their operations.
Farm Bill
The Farm Bill is a legislation package passed once every five years and regulates processes across the roughly 2 million farms in the U.S. The bill’s current version was enacted in 2018 and is expected to last till 2023. However, Congress recently approved an extension through September 2024.
There are many provisions in the bill dedicated to promoting sustainability. For example, Title 9 covers programs promoting renewable energy systems and cultivating crops for biofuel. Title 2 covers programs for implementing natural resource conservation, while Title 5 provides farmers access to financial credit and other tools for growing their farming operations.
Warner Grants
This program is administered by the College of Food, Agricultural and Environmental Sciences at the Ohio State University. It provides up to $5,000 for on-farm research advancing sustainable food production.
Farming Investment Fund
The U.K. government offers this funding program through the Department for Environment, Food and Rural Affairs. It provides grants for investments in agricultural equipment and infrastructure to benefit the environment. The main goal is incentivizing farmers to adopt sustainable technological solutions for enhancing farm productivity.
Where purchasing equipment is not feasible, renting provides a suitable alternative. The key is to prioritize versatile machinery capable of handling multiple tasks simultaneously. For instance, skid steers are one of the best machines farmers can rent due to their simple use and universal compatibility with wide-ranging attachments.
Common Agricultural Policy (CAP)
The CAP is one of the EU’s programs for bridging the €62.3 billion funding gap required to incentivize and de-risk sustainable agricultural best practices across Europe. It improves farmers’ access to start-up capital and lending opportunities for implementing transitions to more eco-friendly farming methods.
Is Sustainable Agriculture Worth the Cost?
Yes. The United Nations estimates greener farming practices use 56% less energy for each crop cultivated and create 64% fewer carbon emissions per hectare. Sustainable methods also support greater natural resource conservation and greater biodiversity levels. These make a world of difference to the environment.
There are economic benefits, too — eco-friendly agriculture can create up to 30% more jobs and generate more income for farmers.
Promote Sustainable Agriculture in 2024
As ecological awareness gains momentum, the food production industry represents a key pillar ripe for a sustainability transition. Farmers can leverage these financing opportunities to introduce more eco-conscious practices and contribute to a more environmentally responsible future.
Jane is the Editor-in-Chief of Environment.co, where she covers topics related to climate policy, renewable energy, the food industry, and more.
Photo by Annie Spratt on Unsplash
