Pay farmers to reduce their carbon footprint

Loren Poncia, a fourth-generation cattle rancher, made the carbon at Stemple Creek Ranch positive. He implemented rotating pasture systems for livestock that allow the soil and grass to recover, applied compost on pastures and planted chicory that aerates the soil.

Courtesy of Paige Green

President Joe Biden urged U.S. farmers to lead the offsetting of greenhouse gas emissions to combat climate change – a goal that fourth generation cattle breeder Loren Poncia set out to achieve more than a decade ago.

Despite working in the beef sector, a major contributor to global warming, Poncia has transformed his farm in Northern California into one of the few carbon-positive livestock operations in the country.

“It is a win-win situation – for the environment and for our pocket,” said Poncia, who adopted carbon cultivation practices through a partnership with the Marin Carbon Project.

Experts estimate that farmers around the world can sequester a large enough portion of carbon through regenerative farming practices to avoid the worst impacts of climate change. The research suggests that removing carbon that is already in the atmosphere and replacing soil worldwide can result in a 10% reduction in carbon. The United Nations has warned that efforts to reduce global emissions will be insufficient without drastic changes in global land use and agriculture.

The Poncia ranch hijacks more carbon than it emits through practices such as rotating cattle grazing systems, which allow soil and grass to recover, applying compost instead of chemical fertilizers to pastures to prevent cultivation, building earthworms and planting chicory to aerate the soil. These climate-friendly projects allowed Poncia to grow more grass and produce more meat.

“If we, as a world, are going to reverse the damage that has been caused, it will be through agriculture and food sustainability,” said Poncia. “We are excited and positive about the future.”

While some farmers, ranchers and foresters have already adopted sustainable practices that capture existing carbon and store it in the soil, others are concerned about initial costs and uncertain returns that may vary between states and agricultural operations.

The United States Department of Agriculture recently said it would encourage farmers to implement these sustainable practices. And more researchers and companies have started to quantify and better manage the carbon stored in the soil.

USDA boosts carbon agriculture

Combating climate change has become a matter of survival for American farmers, who have suffered heavy losses from floods and droughts that have become more frequent and destructive across the country.

In 2019, farmers lost tens of thousands of hectares during historic floods. And NASA scientists report that rising temperatures have led the western United States to the worst drought in decades seen in the last millennium.

In the United States alone, agriculture is responsible for more than 10.5% of greenhouse gas emissions that heat the planet, according to estimates by the Environmental Protection Agency.

As a result, the Biden government now wants to direct $ 30 billion in agricultural aid money from the USDA Commodity Credit Corporation to pay farmers to implement sustainable practices and capture carbon in their soil.

This Monday, March 18, 2019, the photo in the archive shows floods and underwater storage deposits on a farm along the Missouri River in rural Iowa north of Omaha, Neb.

Photo AP | Iowa Homeland Security and Emergency Management

Biden’s USDA Agriculture Secretary nominee Tom Vilsack, who has pledged to help fulfill Biden’s broader plan to achieve a zero net economy by 2050, said the money could go towards creating new markets that encourage producers to sequester carbon in the soil.

Former President Donald Trump has already used these funds to help farmers hurt by their trade wars with China, Mexico and Canada, which brought down commodity prices.

Using CCC money to create a carbon bank may not require Congressional approval, and agricultural lobby groups are expected to persuade Congress to expand the fund.

“It is a great tool for us to create the type of structure that will inform future agricultural accounts about what will stimulate carbon sequestration, which will encourage precision farming, which will encourage soil health and regenerative agricultural practices,” said Vilsack in his statement. Senate confirmation hear this month.

Vilsack, who spent eight years as Secretary of Agriculture for President Barack Obama, also asked Congress to have an advisory group of farmers to help build a carbon market and ensure that farmers receive the benefits.

Government pressure to encourage carbon capture on farms could boost an emerging market for farm emission reductions and technological advances that are helping farmers improve soil health and participate in carbon trading markets.

An emerging market

Some farmers have entered into partnerships with nonprofit policy and environmental groups to work on environmental sustainability. The movement has also seen increasing support from private companies.

Indigo Ag, a start-up that advocates regenerative agricultural practices, said companies like Barclays, JPMorgan Chase and Shopify have committed to buying agricultural carbon credits that help producers with transition costs.

Chris Harbourt, global head of carbon at Indigo Ag, said the company is working with producers to address financial barriers during the transition and provide education on implementing regenerative farming practices, such as planting off-season cover crops or changing for no-till.

“Producers who adopt regenerative practices see benefits far beyond financial ones,” said Harbourt. “The soil is healthier and more resilient, which creates more opportunities for profitable years, even when weather conditions are challenging.”

More of CNBC Environment:
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Erik Fyrwald, CEO of Syngenta, a Swiss seed and crop protection company, said government policies need to provide farmers with adequate incentives to accelerate the transition to regenerative agriculture.

“The incentives must be sufficient and reliable to give farmers the confidence to make the necessary investments to implement these practices on their farms,” ​​said Fyrwald.

Poncia, who has received state funding twice from the California Healthy Soil Program to implement sustainable practices on his farm, said he hopes the government can provide sufficient support for agriculture so that others can achieve similar results.

“The agricultural community wants to support this movement, but it needs help, education and the ability to reduce risk,” said Poncia. “If the government supports farmers who are getting good results, everyone else will follow.”

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