Report Finds Weakened Economic Indicators May Pose Challenges for Supply Chain Sustainability Efforts
Submitted by Field to Market: The Alliance for Sustainable Agriculture
November 10, 2020 /CSRwire/ - A prolonged period of low commodity prices has created significant financial pressures for U.S. agriculture, jeopardizing many farming operations and challenging the ability of supply chains to meet ambitious sustainability goals absent more direct support for growers. This is the key finding of a report released today, Economic Sustainability: Trends in Financial Well-Being, issued by Field to Market: The Alliance for Sustainable Agriculture based upon research and analysis from economists at the University of Illinois.
Presented as a companion to Field to Market’s landmark, science-based sustainability trends analysis, the National Indicators Report, this report analyzes publicly available data to present a set of indicators that evaluate the current state of the farm economy. The findings underscore the critical relationship between farm financial well-being and a producer’s ability to make operational changes needed to deliver improved environmental outcomes.
“Farmers are in a unique position to deliver broader environmental benefits to society based on their management decisions, but, in many cases, they lack the financial resources needed to pursue practices that would improve sustainability outcomes,” said Rod Snyder, president of Field to Market. “While certain agronomic practices simultaneously deliver environmental benefits, operational efficiencies and cost savings, others require investments that farmers may not currently be able to shoulder, leaving a role for supply chain partners to help bridge the financial gap.”
The findings in this report specifically focus on crops included in Field to Market’s sustainability programs: alfalfa, barley, corn, cotton peanuts, potatoes, rice, soybeans, sorghum, sugar beets and wheat.
“American farmers are committed to sustainability and want to leave the land better than when it was first entrusted to their care, playing a leading role in promoting soil health, conserving water, enhancing wildlife, and efficiently using resources. At the same time, economic sustainability is core to agricultural sustainability and a necessary part of farmer decision making,” said John Newton, chief economist, American Farm Bureau Federation. “Given the volatility associated with commodity prices and farm income detailed in this report, the entire supply chain must assist in making the upfront investment associated with implementing the climate-smart technologies needed to achieve our sustainability goals and outcomes.”
Although farming has many risks, there are public and private sector programs and tools farmers can use to mitigate these factors. Field to Market strives to create partnerships across the value chain through its Continuous Improvement Accelerator, which includes a project pathway specifically focused on delivering innovative financial support mechanisms for growers. The multi-stakeholder organization is committing an increased level of focus on piloting and scaling solutions to enhance farmer livelihoods while supporting resilient ecosystems.
“Agriculture has never been an easy profession, but today’s family farmers and ranchers are facing some of their steepest economic and environmental obstacles in many decades. To adapt to and mitigate these ever-alarming threats, farmers are implementing new practices and systems—but they come at a financial and temporal cost,” said Rob Larew, president, National Farmers Union. “Food and agricultural companies must keep these expenses in mind as they work to reduce the environmental footprint of their supply chains."
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Field to Market: The Alliance for Sustainable Agriculture brings together a diverse group of grower organizations; agribusinesses; food, beverage, restaurant and retail companies; conservation groups; universities and public sector partners to focus on defining, measuring and advancing the sustainability of food, fiber and fuel production. Field to Market is comprised of nearly 150 members representing all facets of the U.S. agricultural supply chain, with members employing more than 5 million people and representing combined revenues totaling over $1.5 trillion. For more information, visit www.fieldtomarket.org and follow us on Twitter at twitter.com/FieldtoMarket.
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Field to Market
Field to Market: The Alliance for Sustainable Agriculture is a leading multi-stakeholder initiative working to unite the agricultural supply chain in defining, measuring and advancing the sustainability of food, fiber and fuel production in the United States. We bring together a diverse group of grower organizations; agribusinesses; food, beverage, restaurant and retail companies; conservation groups; universities; and public sector partners to create opportunities across the agricultural supply chain for continuous improvements in productivity, environmental quality, and human well-being. With the world population estimated to exceed 9 billion by 2050, the entire value chain must work together to efficiently and responsibly lay the groundwork for a more sustainable future. From the farm gate to the retail and restaurant counter, the challenge of producing enough food, fiber and fuel for a rapidly growing populationâ€”while conserving our planet’s natural resourcesâ€”has become increasingly complex. The nature of this challenge requires an unparalleled level of transparency and collaboration. By uniting the agricultural supply chain and key stakeholders around a common measurement framework, Field to Market seeks to drive continuous improvement in the sustainability of commodity crop production.