A new report is calling for greater accountability in the system providing 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.

Joshua Humphreys, president and senior fellow of Croatan Institute, a farmer and lead author of the report, said 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 homebuyers 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 argued the findings can be an opportunity for the system to address the disparities.

The report also pointed to 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.

David Beck, director of policy at Self-Help Credit Union and a contributor to the report, 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 suggested. "Maybe helping subsidize that switch to more sustainable ag systems."

The research touched on some governance issues as well, such as board members serving expired terms. Humphreys stressed the 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," Humphreys emphasized. "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 recommended conducting more climate research, implementing Green and Impact Bonds, and establishing a grant set-aside program through a congressional mandate.


get more stories like this via email

Three members of Nebraska's student-run climate advocacy organization Students for Sustainability were among the youngest participants at the recent Citizens Climate Lobby conference in Washington, D.C.

Evalina Sain, executive director of the group and an incoming senior at Omaha Central High School, said one of their takeaways is how many values farmers and environmentalists share. She pointed out although some city dwellers may be inclined to tell farmers what they should be doing differently, farmers are, in her words, "some of the most sustainable people we know."

"Because they're so incredibly connected with nature, and their values are just rooted in what they can provide for the earth and what the earth can provide for them," Sain noted. "So, really prioritizing our farmers is so crucial as we transition towards a sustainable future within our state."

Sain stressed the nonpartisan nature of the Citizens' Climate Lobby, which starts all its meetings with an "appreciation." Nebraska attendees used the occasion to thank their congressional delegation for supporting the National Center for Resilient and Regenerative Precision Agriculture, which recently broke ground in Lincoln.

Sain added they met with Sen. Pete Ricketts, R-Neb., personally and with legislative staff for the rest of the delegation. One of their "asks" was for lawmakers to prioritize helping Nebraska farmers get Inflation Reduction Act funds for regenerative agriculture.

"If we want them to transition, it shouldn't be such a financial burden on them," Sain argued. "Millions of dollars were dedicated to building this across the nation but it's extremely difficult for farmers to get access to these programs."

Jacki Petrow, a recent Bellevue High School graduate who plans to pursue environmental studies with an emphasis in policy at the University of Nebraska-Lincoln, said the conference made her realize climate change doesn't have to be a polarizing issue.

"Being able to be in D.C. and seeing how people come together, especially on these topics like renewable agriculture," Petrow explained, "And learning about how it's really good for everyone has really just cemented my excitement for this topic."

Petrow added the experience also alleviated some of her concerns about environmental studies as a career path.

"We need bipartisan support to get things done, and there is bipartisan support there," Petrow emphasized. "It was really incentivizing and helped me see this as more of a positive future for myself and not like I'm going to have to fight people."


get more stories like this via email

Washington state has allocated nearly $1.5 million in grants to support local food systems and supply chains. The Washington State Department of Agriculture distributed the funds to 40 projects, supporting farmers, food and meat processors, and distributors.

Galen Van Horn, local food system and supply chain specialist with the Washington State Department of Agriculture directed distribution of the funds and said there has been consolidation in the large-scale market that small and mid-sized operations can combat.

"We've just seen a clear need for investment to support those small and mid-sized operations and make sure the infrastructure is scaled to meet their needs, and that we don't just have very, very large food system infrastructure - like processing facilities and aggregation points - that are only really scaled for very large farms and food businesses," he explained.

The seeds of the program began in 2021, when the Washington Legislature distributed federal COVID-19 recovery funds to support local food infrastructure because of the pandemic's impact on supply chains. Since 2023, the Local Food System Infrastructure Grant program has distributed $8 million in state funds.

Van Horn said the program is popular and received nearly $19 million in requests - well over what it could provide. One project selected in 2022 was the nonprofit Columbia Community Creamery, which received more than $450,000.

"They got a large grant to get the equipment necessary to receive bulk milk deliveries, and then process that into jars and have it ready to be consumed. A lot of food safety involved there," he continued.

The Washington State Department of Agriculture expects to start the next application round in the summer or fall of next year. Van Horn said the agency looks for proposals that impact the regional food system, are achievable and ask for a reasonable amount of money.


get more stories like this via email

Minnesota will soon hold public hearings on proposed water permit changes as it seeks to get control of nitrate pollution from industrial farms.

This week, the Minnesota Pollution Control Agency released its plan to overhaul standards for a pair of water permits issued to the largest animal feedlots in the state. The main focus is livestock operations in areas vulnerable to groundwater pollution. The farms would have to adopt certain practices related to manure application in the fields.

Joy Anderson, supervising attorney at the Minnesota Center for Environmental Advocacy, calls the plan a commonsense approach to a pervasive problem. She hopes the public takes notice of what is happening.

"People who care about Minnesota's drinking water, people who care about the swimability and fishability of our water," Anderson explained.

Organizations like hers urged residents to speak up during public hearings scheduled for July. Comments can also be submitted to the agency until Aug. 9. The proposed changes are expected to face strong pushback from those representing so-called factory farms. Despite the hope from plan supporters, the changes would only apply to about 5% of livestock feedlots in Minnesota.

Past efforts to enact modest permit changes resulted in outcry from industrial ag interests. Anderson admitted the proposed changes cover a limited number of farms but added they send a signal regulators realize the scope of the contaminated water crisis linked to nitrate pollution.

"This is sort of a first step," Anderson asserted. "It tells us the MPCA is at least a little serious about making some changes."

Her group hopes what is unfolding now leads to rule changes covering all the state's 17,000 feedlots, also known as concentrated animal feeding operations. This week's move follows a recent order from the federal Environmental Protection Agency for Minnesota to clean up contaminated drinking water in the southeastern part of the state, caused by farm runoff.


get more stories like this via email