US farmers count on environmental practices to get edge in foreign markets

U.S. farmers have watched for years as Brazil has become an agricultural powerhouse, grabbing increasing market share in soybeans, cotton, beef and other commodities by converting its vast rainforests and savanna into cropland, with plans to expand even more over the coming decade.

Another U.S. competitor, Argentina, has grown its grain production in part by breaking up its Pampas grasslands, a practice that contributes to greenhouse gas emissions.

Meanwhile, U.S. agriculture groups have been struggling to address demands by policymakers and major multinational corporate customers to cut U.S. farmers’ environmental footprint. Now, those groups are hoping the progress producers are making and the work done to document it will pay off in a competitive advantage for U.S. ag exports in the lucrative European and Asian markets.

One reason it might be a good bet, say experts, is the European Union’s new Green Deal, a sweeping set of proposals that include new metrics for agricultural sustainability. Among other things, the EU document calls for measures to curb the sale of agricultural products “associated with deforestation or forest degradation.”

Marty Matlock, a University of Arkansas scientist who advises sustainability programs for numerous U.S. farm commodities, believes that U.S. farmers should have “a significant competitive advantage” against Brazil and Argentina at least when it comes to selling soybeans, corn and beef into the EU, a market of 440 million consumers.

“We have spent the last 15 years developing and documenting our sustainability initiatives that are multi-stakeholder. validated by external parties, have the oversight of our conservation organizations, and the engagement of our conservation organizations, who are also active in Europe,” he said.

Some of the same farming practices, such as conservation tillage and cover crops, that are being sold to U.S. farmers as ways to improve soil health, reduce runoff and potentially make them eligible for carbon credits could also help compete in foreign markets: Scientists are working to produce data that will assure markets and policymakers that those carbon-conserving practices reduce the environmental footprint of animal feed and the meat and dairy products the feed is used to produce.

For example, the National Cotton Council launched a nationwide initiative in September to set a new standard for sustainably-grown cotton. The U.S. Cotton Trust Protocol “brings quantifiable and verifiable goals and measurement to sustainable cotton production and drives continuous improvement in key sustainability metrics, thereby giving brands and retailers the assurances they need for their supply chain,” says NCC spokeswoman Marjory Walker.

To be sure, the EU rules have raised alarms within the Trump administration because of their potential to discourage the use of genetically engineered crops and pesticides. A recent study by USDA’s Economic Research Service has estimated that the Green Deal strategy will result in lowering Europe’s agricultural production by 12%.

The Green Deal “Farm to Fork” strategy goes so far as to suggest replacing some traditional feed sources, such as “soya grown on deforested land,” with alternatives such as insects, algae and fish waste.

The standards that exporters will have to follow to keep selling into the EU market are still a moving target, too. An executive with the European Feed Manufacturers’ Federation told Agri-Pulse in an exclusive interview that U.S. soybean exporters will likely be required to tighten their sustainability standards.

But Jim Sutter, CEO of the U.S. Soybean Export Council, believes that U.S. soybeans should benefit from the global sustainability push simply because it isn’t grown on deforested land. He said, “Our soy has a great track record from an environmental perspective and from a sustainability perspective.”

Agri-Pulse

Tags: US farmers, environmental practices to get edge in foreign markets