A new report calls for greater accountability in the system that provides funding to farmers in underserved communities. The research takes a dive into the Farm Credit System, examining the risks and suggesting improvements to make the system more fair and sustainable.
Report lead author Dr. Joshua Humphreys is a farmer and president of the Croatan Institute. He asserted that, despite the Farm Credit System making around 45% of all agricultural loans, there is no transparency in how much of the funding goes to small, midsized or socially disadvantaged farmers.
"Minority home buyers were deeply underserved," Humphreys pointed out, "yet no data demographically related to race, ethnicity or gender along the lines of other equal lending opportunity sectors are provided."
According to the report, most Farm Credit System loans go to very large operations, and fewer than 20% to small or beginning farmers. Humphreys said the findings can be an opportunity for the system to address the disparities.
The report also examines the system's lack of climate-related reporting, and suggests ways to make sustainability a bigger priority in lending. For the last several decades, farmers have dealt with increased risks -- from rising temperatures and more frequent severe storms to wildfires.
Report contributor David Beck, director of policy at Self-Help Credit Union, said as agriculture's Government-Sponsored Enterprise, more can be done to help farmers to transition to more eco-friendly practices.
"For instance, helping small farmers or even larger farmers switch to more regenerative ag practices that can require a lot of upfront cost," Beck explained. "So, maybe helping subsidize that switch to more sustainable ag systems."
The research touches on governance issues as well, such as board members serving expired terms. Humphreys added these challenges must be addressed, as taxpayers ultimately would bail the system out in the event of a crisis.
"Agriculture is not immune from a wide array of environmental, social and governance risks and opportunities," he insisted. "I think that's the key takeaway, is that we really want to encourage the Farm Credit System to end its laggard position among Government-Sponsored Enterprises."
The report recommends conducting more climate research, implementing Green and Impact Bonds, and establishing a grant set-aside program through a congressional mandate.
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Ocean advocates are hailing a federal judge's decision that deemed a nationwide permit for industrial aquaculture structures unlawful.
The U.S. Army Corps of Engineers' approval of the permit for finfish nets and cages was found to violate several environmental laws.
Center for Food Safety Legal Director George Kimbrell called that a win against corporate interests pushing to industrialize the open ocean.
"It's an important victory protecting our oceans," said Kimbrell, "their native ecosystems, and the communities that rely on them."
Still, Kimbrell said the court ordered both sides to return to court later this month with a plan on how to remedy the matter.
The ruling comes as an increasing number of Maine communities adopt emergency aquaculture moratoriums, but backers of large-scale aquaculture say it's needed to meet a growing seafood demand.
Maine's abundant coastline and working waterfronts make it an ideal place for an aquaculture business, and numerous small-scale shellfish and marine plant farms are boosting local economies.
But commercial fishermen say the growth of large, foreign-owned fish farms endangers both the ocean and their livelihoods. Kimbrell said a battle to privatize the ocean is underway.
"Taking parts of the ocean and saying, 'you can't fish here, and instead this is going to be an area we're going to allow a corporation to use exclusively for a certain number of years,'" said Kimbrell. "In this case, these are 10-year permits that would have been established."
Kimbrell said federal courts covering the Gulf of Mexico previously struck down efforts to establish industrial aquaculture there.
He said despite intense lobbying efforts by proponents, Congress has never passed a law authorizing large-scale aquaculture in federal waters.
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By Lauren Kobley for Cronkite News.
Broadcast version by Alex Gonzalez for Arizona News Connection reporting for the Solutions Journalism Network-Public News Service Collaboration
Jesse Garcia was first introduced to farming in his grandmother’s garden. As a child, he recalls not quite understanding the true purpose of growing and how important it is.
It was in high school that he first started taking an interest in farming and agriculture. After graduating, he had a number of jobs, but he did not feel passionate about any of them. It was then that he found the Ajo Center for Sustainable Agriculture.
Arizona farmers are aging. With a hope to sustain farming practices in the state, particularly within Indigenous communities, the co-executive directors of Ajo CSA, Sterling Johnson and Nina Sajovec, are training the next generation of growers through their beginning farmer apprenticeship program.
As of the 2017 Census of Agriculture from the U.S. Department of Agriculture, 59% of farmers in Arizona were Indigenous, more than any other state. The vast majority of farmers in the U.S. are over the age of 35, with an average age 57.5. With the average age of farmers increasing, advocates say it is important to train the next generation of farmers to maintain the state’s agriculture industry.
“Arizona did things backwards. We became a state. We created a job force. But, we didn’t include farming,” Johnson said. “The wrong assumption was that farming was going to stay within the family, but things have changed. The ways of thinking have changed, the way we do things have changed and there’s no one else to take over.”
The Ajo CSA program trains three to five aspiring farmers like Garcia each cycle in Ajo and on the Tohono O’odham Nation. The eight- to 11-month program allows apprentices to visit local farms, establish their own growing space and attend workshops to learn about local sustainable farming techniques.
The apprentices practice growing and harvesting different varieties of crops each season, including lettuce, tomatoes, chiles, squash, beans and corn. Because the farm is a teaching farm, the produce is not sold, but the organization saves the seeds to distribute throughout the community and use for later growing periods.
Johnson was born and raised on the Tohono O’odham Nation in a ranching and rodeo family. He has overseen more than 40 apprentices and youth interns, 70% of whom are Tohono O’odham.
“I’m very excited that we get to teach them (the apprentices) our ways, and we get to promote our ways. Not just to the outside, but to our people. They should be proud of who they are and where they come from,” Johnson said.
On the Tohono O’odham Nation, the apprentices practice climate-smart agriculture and dryland farming. The three main objectives of climate-smart agriculture are to sustainably increase productivity, adapt to climate change and reduce greenhouse gas emissions. Dryland farming is the practice of producing sustainably by using the soil’s own moisture and limited irrigation to plant and grow.
“The soils are the key factor in order to have a good nutritious crop. If you overtax those soils, you lose all the nutrients and all the natural things that are in the soils that would be healthy for us as people,” said Michael Kotutwa Johnson, a Hopi farmer and professor at the University of Arizona.
Indigenous farmers have developed and practiced these sustainable farming techniques for generations and they were almost lost, he said. One of the reasons they are successful is because of the adaptation seeds have undergone through the years to grow in desert-like climates.
“Our seeds are like us. They are human beings to the same extent that they also need to be out and adapt to these different environmental conditions. You have organizations … and they’re just holding on to those seeds. They’re also not raising them in the places where they’re from, so they’re losing their chance to adapt,” UArizona’s Johnson said.
Opportunities like the Ajo CSA apprenticeship program give young farmers the chance to get hands-on experience to develop climate-smart agricultural skills and get in touch with Indigenous culture.
“Farming’s a tradition, just like Grandma’s recipe. You don’t want Grandma’s recipe to die out and go away. You got to pass it on,” Gilbert Villegas Jr., an Ajo CSA apprentice, said.
Not only does the apprenticeship build their skills, it prepares them to farm their own land and grow on a larger scale.
Since finding Ajo CSA seven years ago, Garcia said he has learned invaluable information about farming that he has been able to apply to his own farm on the Tohono O’odham Nation.
“Working with Ajo kind of gives you the whole insight of how to run the business: How to apply for grants, how to get partners, how to use those partners, how to organize events – anything that can kind of help your business grow,” he said.
He said building his roots in farming has been a challenge, but he has had incredible mentors like Sterling Johnson that have helped guide him along the way. Garcia now comes back to Ajo CSA as a volunteer and mentor. He hopes to have an impact on those who are in the program now.
“It starts with you as a person. You have to want to change and try to bring everything (the farming techniques) back. If you don’t see the big picture then what’s the point of you trying to spread it?” Garcia asked. “There’s always somebody out there you can go and keep passing it on … hopefully somebody hears.”
Looking toward the future of the program, Sterling Johnson hopes that Native American traditional agricultural practices are given their proper recognition, acknowledgement and respect.
“This is our way of keeping our traditions alive. … We pray for those who are on the ground and those who are on top guiding in this modern world as we need agriculture to have a future for all of us,” Johnson said.
Lauren Kobley wrote this article for Cronkite News.
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By Lena Beck for Modern Farmer.
Broadcast version by Eric Tegethoff for Washington News Service reporting for the Modern Farmer-Public News Service Collaboration.
Walking through the fields of Viva Farms in Washington State's Skagit Valley, the smell of strawberries is strong in the air. The rain that came down hard the week earlier spells the end of strawberry season, says farmer Francisco Farias, but he still has raspberries, one of his favorite crops to grow.
Farias explains all this in Spanish, while Viva Farms farm viability director Anna Chotzen translates.
Farias has farmed a parcel of land here at Viva Farms since 2017-as do dozens of other farmers. Viva Farms is a farm business incubator and training program. It educates beginning farmers on sustainable practices, and provides them with land to start their business. Farias completed the program in 2016, and together with his brothers started Farias Farm in 2017.
In recent years, Viva Farms realized it needed to expand its land access work to help more mature businesses launch beyond Viva Farms. Not only is land access a critical barrier to new farmers, it's also something that has been exacerbated by patterns of discrimination by the USDA and agricultural lenders. Access to land is an even higher barrier for communities that are statistically underserved or denied loans.
"We see that the system is not working for farmers, and we're really committed to pushing the envelope so that it can [work]," says Chotzen.
Farias, who now operates his farm in partnership with his wife, wanted to pursue this goal as well. And this summer, that dream became a reality.
Working with Viva Farms and Dirt Capital Partners, an agricultural investment company, Farias now has locked in a financing deal that puts him on track to own a parcel of land a few miles away from Viva Farms, within just a few years. He has a 10-year lease and is hoping and planning to purchase it sooner than that.
"It's always been a dream and a goal of ours to find a place that we could really grow our business, and that can be a stable place where we know we can stay," says Farias.
Incubating a dream
Farias grew up farming in Mexico, and worked for a short time on a conventional farm there. When he came to the US in 1996, he worked for an organic farm in Washington state.
When he connected with Viva Farms and began its Practicum in Sustainable Agriculture, it gave him the tools to start his own business.
After his brothers completed the practicum as well, the three of them began farming together on land from Viva Farms. Farias Farm grows broccoli, cauliflower, strawberries, blueberries, carrots, and other vegetables, all organic.
"In organic production, I feel free," says Farias. "I can just be out in the field and know that everything is really healthy. I have kids, and they can come out and they can eat food off the farm, and I don't have any worries."
As they grew, they had success. They established themselves at regional farmers markets, and sold produce through Viva Farms. Farias's brothers left to pursue other careers, and his wife Lorena joined him as co-owner. They expanded from just half an acre to having 10 acres at Viva Farms and 10 acres on a nearby piece of land.
And then that nearby land went up for sale.
The final piece
The number of farms in the US decreased by 6.9 percent between 2017 and 2022, according to US Census of Agriculture Data. Washington State sees this pattern mirrored in agricultural areas such as the Skagit Valley-the state lost 3,717 farms between 2017 and 2022.
This speaks to the trend of consolidation-a rapid squeeze on small farmers across the country that shows no signs of letting up. While established farmers get forced out, new farmers struggle to take their place due to a smattering of high barriers, principle among them access to land.
Viva Farms has been operating since 2009, and provides new farmers with the tools to incubate their farm business, including capital, marketing, bilingual education, and more. One of the most important things it provides is land: Viva Farms operates more than 100 acres, and members of its incubator program can access certified organic parcels to farm.
But Viva Farms' land is not intended to be the forever home for any of the farms it incubates. "In recent years, it's become really clear that for us to be committed to farmers' success, we have to help them with this final piece," says Chotzen. "It sounds nice on paper to just say you build your business for a few years at Viva and then launch off-site, but the reality of finding a long-term home for your farm is much more challenging."
Land ownership provides individual farmers with stability and security-it gives them more freedom to make decisions about their operations and to plan long-term. Broadly, a system of diversified farms is more resilient to pests and climate shocks than monoculture operations.
And so Viva Farms worked with Farias and Dirt Capital Partners to set up terms that could result in a pathway to ownership for Farias. The model they used allows farmers to get a secure lease, with the option to purchase at a later date. This permits them to get on land right away without the requirement of an immediate down payment, and with a 10-year runway to figure out their financing.
It's a good first step, says Chotzen, and she believes it is replicable for other investment firms. Dirt Capital Partners is a leader in the space among venture capital and impact investment firms, she says, and she hopes the process evolves to further reduce interest rates and the final amount farmers owe.
"I just think that if we as the farmer support community, whether that's us at Viva or the finance space, if we really want to support the farmers who've been historically excluded, and build the food system we want using the ecological practices that we all think are essential, we have to be willing to be flexible on what we are expecting in terms of financial return," says Chotzen. "The risk can't land with the farmer all the time."
In the last two years, Viva Farms has received $6 million from the USDA to support this work. More regulatory mandates to fund this work would help, such as in the Farm Bill.
A farm stand
Having his own place to farm opens up new opportunities for Farias, and makes space for new goals. Washingtonians can find Farias Farm at regional farmers markets; he hopes to open a farm stand on the property next year. He's doing other future planning, too: He hopes to build his own cooler, so they don't have to depend on Viva Farms' refrigeration capacity anymore. There's also a house on the land they will own, and they'll be moving in soon, so they can live where they farm.
Walking back to the parking lot from the fields, Farias talks about getting to plant more blueberries now. When you rent land, you have to think short-term. Season to season. Broccoli, carrots, and other things that don't require multi-year tending. But now that he has his own land, he has the stability of getting to plan for the future.
"There are a lot of opportunities, and I'm hoping to achieve them," says Farias. "Just being able to plan for the long term is a big one."
Lena Beck wrote this article for Modern Farmer.
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