Canadian canola joins regenerative ag program

The rubber is finally hitting the road for farmers wanting to get paid for their conservation practices, says an industry executive.

“There is now a market force here that’s driving a bunch of different programs to get off the ground,” said Kurt Alles, head of sustainable business at Farmers Business Network (FBN).

The company is working with Archer Daniels Midland on the grain company’s re:generations regenerative agriculture program.

The program was launched in 2022 in the United States, where it enrolled 1,900 growers and covered 1.2 million acres of cropland.

The two companies intend to expand the program in 2023 to 3,000 farmers, including 150 Canadian growers.

FBN is providing its digital farm business management platform, called Gradable, which allows growers to submit their sustainability information. The company then translates it into “outcomes and claims” that will be passed down the supply chain.

That information allows ADM and farmers to collect the voluntary and regulatory rewards that now exist in the supply chain.

“Gradable is a key enabler in our efforts to help producers improve their bottom lines, strengthen farm resiliency, meet growing global demand for more sustainably sourced products and help pave the way to a more sustainable future,” Greg Morris, president of ADM’s ag services and oilseeds business, said in a news release.

In Canada, the information will be used to calculate a carbon intensity score for canola.

FBN members who register for the program will be able to lock in a five cent per bushel premium for participating and another two cents if their score falls below a specific carbon intensity benchmark.

“This announcement really is a demonstration of the formalization of these markets,” said Alles.

Farmers are finally starting to get paid for conservation practices such as cover crops, reduced tillage, nitrogen efficiency, soil health and reducing crop inputs.

He noted that many companies now offer regenerative rewards programs that take a lot of “different shapes and sizes.”

“Find the program that fits best with your operation, has requirements that makes the most sense for you and that provides the best rewards,” said Alles.

Growers participating in the FBN/ADM program will deliver their canola to ADM’s crush plants in Lloydminster, Alta., or Windsor, Ont., or to its primary elevator in Watson, Sask.

Alles said one of the biggest challenges in running sustainability programs is balancing scientific rigor with a data collection process that is not too onerous for the farmer.

“That is what is going to facilitate scale in this market and provide farmers with the best experience,” he said.

Farmers will spend one to 1.5 hours providing data, split between an initial information-gathering phone call and a follow-up call where all the data is submitted and organized on FBN’s website.

Growers will be asked to provide information on fertilization, yields, tillage practices, cover crops and other conservation practices.

FBN has been conducting grower surveys each year of the program.

“We have over 95 percent satisfaction with our program,” said Alles.

“It’s really easy for farmers to participate and submit the information to meet the requirements to receive the rewards in the program.”

In the U.S., the two companies are offering programs for corn, soybeans, wheat, cotton and peanuts.

FBN is also working with other grain companies on similar sustainability initiatives.

The company has not set any long-term targets for participation in the ADM project by its 9,300 Canadian members.

Tags: canola, ADM, Canada, regenerative agriculture program