The long trends in agriculture that pose the biggest risks
by Ryan Stockwell
Explore the driving interest behind carbon and sustainability markets and understand how changing trends can impact the profitability and future opportunities of your farm operation.
Sometimes slow, seismic changes are the most difficult to confront, they don’t create the sense of urgency of a mechanical issue during planting, a supply chain input issue, or racing the weather to wrap up 3rd crop hay. Such immediate issues are easy to spot and relatively easy to address with all farmers having ample experience dealing with such challenges. After all, in the day to day battle to complete a profitable season, tackling these challenges becomes unavoidable.
But what about the big trends? You know, the slow evolution that occurs within the industry? The stuff that we do not deal with on a daily or even yearly basis. The stuff that we cannot control, but nonetheless impacts our farms and the context in which we make decisions. These slow trends can put the slow squeeze on operations not paying attention. I watched this play out during my childhood as my parents farmed and also ran an auction company. Too often I observed farmers leaving the industry and even on auction day, wondering how things changed. We have all witnessed this process. Those late to adopting new technology or approaches are left competing with others who have found competitive advantages. As margins narrow, those late to innovating face increasingly challenging budgets.
We are all familiar with two common long trends in agriculture; mechanization and scale. Both trends have significantly reduced labor requirements and cost per unit of output. These trends will continue, but other long trends will develop that will have as profound of impacts over the next 20 years as anything we’ve seen in agriculture.
The three long trends to prepare for:
- Biology: In the 20th century seed genetics provided the path to increasing yields and reducing pest and disease impacts on crops. With the evolution of our understanding of soil and the rhizosphere, advancing yield potential beyond seed genetics will drive future yield growth.
- Carbon and Sustainability: The generation that has grown up learning about climate change since their earliest days have now become the biggest consumer cohort who make purchasing decisions with sustainability as a top priority. This demand has only increased as other generations increasingly include sustainability as a factor when making purchasing decisions.
- Data: Related to carbon and sustainability, data will play a significant role as the food, fuel, and fiber supply chain increasingly require evidence of practices that generate carbon sequestration or sustainability improvements.
As these trends continue to emerge and build, growers have a range of helpful tools and products available through Indigo:
- Indigo’s Biotrinsics product boosts crop yields, particularly in challenging weather conditions and can be easily applied to seed.
- Indigo’s Source program allows grain buyers to meet sustainability needs while providing new marketing opportunities for farmers using beneficial practices.
- Indigo’s Carbon program creates carbon credit opportunities for growers adding or intensifying their use of cover crops and/or reducing tillage.
Indigo has numerous tools to sort through and find the best solutions that work for your specific needs. To see if Carbon is right for you, start thinking through your farm plan using the Soil Health Optimizer (log in or create your free account to access the tool).
By: Ryan Stockwell, Indigo Grower Engagement Senior Manager and Wisconsin farmer
This article may include information from third-party sources or other information that Indigo may not independently verify. Carbon quantification methods, processes and understandings are in their nascency and subject to change and continuous development. The information contained herein is for general informational purposes only and may be based on generally applicable assumptions that may not be applicable to any individual operation. Actual results may differ among growers and farms based on a large number of variables. Each operation should independently consider the financial implications and all potential risks and benefits of the use of any agronomic practice. Any payments under Carbon by Indigo are subject to multi-year vesting and are contingent on continued long-term maintenance of regenerative agricultural practices and soil carbon levels. All Carbon Credits generated are subject to buffer pool holdbacks required by third-party crediting; participants will not receive payments for such holdback. Neither Indigo nor its representatives or affiliates makes any representations, warranties or guarantees as to any specific outcomes (agronomic, financial or otherwise) in connection with any recommendations, calculations or predictions. Terms, conditions, limitations and eligibility requirements apply. See program agreement for additional details regarding Carbon by Indigo.
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Neither Indigo nor any of its affiliates makes any representations, warranties or guarantees as to any specific results or outcomes, including, without limitation, with respect to soil health outcomes or any minimum amount of greenhouse gasses sequestered or number of carbon credits generated. Participation in Carbon by Indigo is subject to the terms, conditions and limitations of the program contained in the applicable enrollment agreement. Any payments under Carbon by Indigo are subject to multi-year vesting and are contingent on continued long-term maintenance of regenerative agricultural practices and soil carbon levels. All Carbon Credits generated are subject to buffer pool holdbacks required by third-party crediting; participants will not receive payments for such holdback. Not available in all areas.
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