Conservation Agricultural Finance Framework
Assessing conservation practice adoption and borrower risk
Before agricultural finance institutions can account for the risk reducing benefits of conservation practice adoption, they must have the tools to make it possible. The Conservation Agriculture Finance Framework, developed by AGree and its partners, establishes an outline that agricultural finance institutions can use to assess the impact of conservation practice adoption on the risk profile of their borrowers. This framework is based upon analysis of a decade of data at the farm and field level for millions of acres across the U.S. Midwestern states.
Partnering with agricultural finance institutions, AGree plans to pilot the framework to test the tool as a means of incorporating the risk-reducing benefits of conservation practice adoption. We look forward to sharing the outcomes, including any financial incentives that result.
Our Work on Ag Finance
We believe that exploring how the agricultural finance system can incorporate the risk-reducing benefits of conservation investments is critical to making the food and agriculture system more resilient to climate change. This can help to incentivize greater adoption of conservation practices on working lands and diversified agricultural systems.