USDA to Triple Commitment with Initial $2.8 Billion Investment Piloting New Revenue Streams for Americas Climate-Smart Farmers, Ranchers and Forest Landowners, with Additional Projects ahead
WASHINGTON, Sept. 14, 2022 Agriculture Secretary Tom Vilsack announced today that the Biden-Harris Administration through the U.S. Department of Agriculture is investing around $2.8 billion in 70 selected projects beneath the first pool of the Partnerships for Climate-Smart Commodities funding opportunity, with projects from the next funding pool to be announced later this season. Ultimately, USDAs anticipated investment will triple to a lot more than $3 billion in pilots that may create market opportunities for American commodities produced using climate-smart production practices. These initial projects will expand markets for climate-smart commodities, leverage the greenhouse gas great things about climate-smart commodity production and offer direct, meaningful advantages to production agriculture, including for small and underserved producers. Applicants submitted a lot more than 450 project proposals in this first funding pool, and the effectiveness of the projects identified led USDA to improve its investment in this opportunity from the original $1 billion Vilsack announced earlier this season.
There’s strong and growing fascination with the private sector and among consumers for food that’s grown in a climate-friendly way, said Vilsack. Through todays announcement of initial options for the Partnerships for Climate-Smart Commodities, USDA is delivering on our promise to create and expand these market opportunities for American agriculture and become global leaders in climate-smart agricultural production. This effort increase the competitive benefit of U.S. agriculture both domestically and internationally, build wealth that stays in rural communities and support a diverse selection of producers and operation types.
Earlier this season, Vilsack announced that USDA had allocated $1 billion for this program, split into two funding pools. Due to the unprecedented demand and fascination with this program, and prospect of meaningful opportunities to benefit producers through the proposals, the Biden-Harris administration increased the full total funding allocation to a lot more than $3 billion, with projects from the next funding pool to be announced later this season. Vilsack made the announcement from the campus of Penn State University, that is the lead partner using one of the selected pilot projects to implement climate-smart practices, quantify and track the greenhouse gas benefits and develop markets for the resulting climate-smart commodities.
Funding for Partnerships for Climate-Smart Commodities will undoubtedly be delivered through USDAs Commodity Credit Corporation in two pools. Projects announced today are from the initial funding pool, including proposals seeking funds which range from $5 million to $100 million. USDA received over 450 proposals from a lot more than 350 entities because of this funding pool, including nonprofit organizations; for-profits and government entities; farmer cooperatives; conservation, energy and environmental groups; state, tribal and local governments; universities (including minority serving institutions); smaller businesses; and large corporations. Applications covered every state in the country along with tribal lands, D.C. and Puerto Rico. The tentative selections announced today reflect this broad group of applicants and geographic scope, and the proposals include plans to complement normally over 50% of the federal investment with nonfederal funds.
USDA will continue to work with the applicants for the 70 identified projects to finalize the scope and funding levels in the coming months. A whole set of projects identified because of this first round of funding can be acquired at usda.gov/climate-smart-commodities. Included in these are:
- Climate-Smart Agriculture Innovative Finance Initiative: This project, that may cover a lot more than 30 states, use innovative finance mechanisms to accelerate climate-smart practice uptake by farmers, leveraging private sector demand to strengthen markets for climate-smart commodities. An easy selection of partners provides technical assistance and extra financial incentives to a diverse selection of producers across an easy selection of commodities, tying climate-smart practice to commodity purchases and developing a scalable model for private sector investment. Lead partner: Field to advertise
- Scaling Methane Emissions Reductions and Soil Carbon Sequestration: Through this project, Dairy Farmers of America (DFA) climate-smart pilots will directly connect the on-farm greenhouse gas reductions with the low-carbon dairy market opportunity. DFA use its cooperative business design to make sure that the collective financial benefits are captured at the farm, developing a compelling possibility to set up a powerful self-sustaining circular economy model benefiting U.S. agriculture, including underserved producers. Lead partner: Dairy Farmers of America, Inc.
- The Soil Inventory Project Partnership for Impact and Demand: This project will build climate-smart markets, streamline field data collection and combine sample results with modeling to create impact quantifications accurate and locally specific but additionally scalable. Targeted farms produce value-added and direct-to-consumer specialty crops and also the 19 most typical row crops in the usa. Lead partner: The Meridian Institute
- The Grass is Greener on the other hand: Developing Climate-Smart Beef and Bison Commodities: This project will generate market opportunities for beef and bison producers who utilize climate-smart agriculture grazing and land management practices. The project will guide and educate producers on climate-smart practices best suited for his or her operations, manage large-scale climate-smart data that’ll be utilized by producers to boost decision-making, and directly impact market demand for climate-smart beef/bison commodity markets. Lead university: South Dakota State University
- Traceable Reforestation for Americas Carbon and Timber: This project builds climate-smart markets for timber and forest products and addresses the necessity to expand and recover the nations forest estate to balance the demand for wood products with the increasing dependence on forests to serve as carbon reservoirs. The project will deploy funding, planning, and implementation of reforestation and afforestation activities in lands deforested by wildfire in the Western U.S. and degraded agricultural lands in the Southern U.S. Every acre planted and the quantity of forest products generated could have a quantified and verified climate benefit in metric a great deal of skin tightening and equivalents (CO2e). Lead partner: Oregon Climate Trust
Spanning around five years, these 70 projects will:
- Provide technical and financial assist with producers to implement climate-smart production practices on a voluntary basis on working lands;
- Pilot innovative and cost-effective options for quantification, monitoring, reporting and verification of greenhouse gas benefits; and
- Develop markets and promote the resulting climate-smart commodities.
The projects announced today will deliver significant impacts for producers and communities nationwide. USDA anticipates these projects can lead to:
- A huge selection of expanded markets and revenue streams for producers and commodities across agriculture which range from traditional corn to specialty crops.
- A lot more than 50,000 farms reached, encompassing a lot more than 20-25 million acres of working land engaged in climate-smart production practices such as for example cover crops, no-till and nutrient management.
- A lot more than 50 million metric a great deal of skin tightening and equivalent sequestered on the lives of the projects. That is equal to removing a lot more than 10 million gasoline-powered passenger vehicles from the street for just one year.
- A lot more than 50 universities, including multiple minority-serving institutions, engaged and helping advance projects, especially with outreach and monitoring, measurement, reporting and verification.
- Proposals for the 70 selected projects include plans to match normally over 50% of the federal investment with nonfederal funds.
Projects were selected predicated on a variety of criteria, with emphasis positioned on greenhouse gas and/or carbon sequestration benefits and equity. The Notice of Funding Opportunity included a whole group of project proposal requirements and evaluation criteria.
USDA happens to be evaluating project proposals from the next Partnerships for Climate-Smart Commodities funding pool, which include funding requests from $250,000 to $4,999,999. Projects out of this second funding pool will emphasize the enrollment of small and/or underserved producers, and/or monitoring, reporting and verification activities developed at minority-serving institutions. USDA expects to announce these selections later this Fall.
Partnerships for Climate-Smart Commodities is section of USDAs broader technique to position agriculture and forestry as leaders in climate change mitigation through voluntary, incentive-based, market-driven approaches. Visit usda.gov/climate-smart-commodities for more information concerning this effort, and usda.gov/climate-solutions for climate-related updates, resources and tools over the Department.
Beneath the Biden-Harris administration, USDA is engaged in a whole-of-government effort to combat the climate crisis and conserve and protect our Nations lands, biodiversity and natural resources including our soil, air and water. Through conservation practices and partnerships, USDA aims to improve economic growth and create new streams of income for farmers, ranchers, producers and private foresters. Successfully meeting these challenges will demand USDA and our agencies to pursue a coordinated approach alongside USDA stakeholders, including State, local and Tribal governments.
USDA touches the lives of most Americans every day in so many positive ways. In the Biden-Harris administration, USDA is transforming Americas food system with a larger concentrate on more resilient local and regional food production, fairer markets for several producers, ensuring usage of safe, healthy and nutritious food in every communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and investing in equity over the Department by detatching systemic barriers and creating a workforce more representative of America. For more information, visit www.usda.gov.
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