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The Green Leap
D                                                 Will green
        riving down a highway in                                                        dairy farm near Elma, Washington.
        northwestern Washington, en                                                     “Instead of having another frog pond
        route from a meeting in his
role as director of the Washington
                                              technologies and                          along the freeway, you could have
                                                                                        protected farmland, protected water
State Dairy Federation, Jay Gordon
can’t help but ponder whether some              green market                            and protected Trumpeter habitat.
                                                                                        That seems like a fair trade to me.”
of the state’s highway beautification                                                       Working with American Farmland
money would be better spent protect-            opportunities                           Trust, the Trumpeter Swan Society,
ing the Skagit Valley farmland that                                                     Capitol Land Trust and the National
provides feeding habitat to a quarter             transform                             Parks Foundation, Gordon received
of the world’s Trumpeter Swans.                                                         funding several years ago for an
   More than , Trumpeter
Swans—their population dwindling
                                                 agriculture?                           easement protecting farmland that
                                                                                        shelters swans displaced from an area
in recent years—migrate from their              By KIRSTEN FERGUSON                     further north along the Olympic
summer breeding grounds in Alaska                                                       Peninsula’s Elwah River.
to warmer winter climates in south-                                                         It takes education, Gordon says, for
ern British Columbia and the Pacific                                                    people to realize that farmland is the
Northwest. The largest waterfowl species native to North     preferred habitat for some species, such as an endangered
America, the swans prefer to roost in grassy fields and      spotted frog that thrives on Washington’s grazed wetlands.
farmland near water.                                         “We need to keep the farmland. There’s a reason the frogs
   “With some of the money spent on landscape projects
by state highways, you could buy development rights          above : A juvenile Trumpeter Swan takes off from a cornfield near 
on farmland,” says Gordon, who operates an organic           Nooksack, Wash.  Ap phOTO/ELAINE ThOMpSON


12   Americ An FAr m l An d Fall 2009
and birds are there,” Gordon says. “There’s a reason the                      are going to be eight to nine billion people living on this
farms are there.”                                                             planet, then we’re going to have to manage resources
   Gordon is just one of many farmers around the country                      better. If you believe that climate change will force us
participating in the “green economy,” an emerging mar-                        to change our agricultural practices and rely less on oil
ketplace that extends the economic notion of “capital” to                     production, then we’re going to have to become much
environmental (or “natural”) goods and services. Whether                      more innovative.”
improving water quality or helping to reduce greenhouse                          Coming changes in how we manage our resources rep-
gas emissions, farmers increasingly are being paid to                         resent not a threat to agriculture but a great opportunity,
produce environmental benefits, renewable energy, locally                     Brookins says. “Agriculture has always taken a lead on
grown food and other “green” products.                                        this. We’ve moved to improve irrigation and genetically
   Last year, the United Nations Environment                                  breed crops that are drought resistant. Technology has
Programme (UNEP) called for a “Global Green New                               allowed us to speed up the process of developing hybrids.
Deal” to lead the world out of economic crisis through a                      Technology is going to help us better utilize our biologi-
surge in green jobs and a restructuring of the global eco-                    cal materials in the soils and convert our animal waste
nomic system to reduce fossil fuel dependence.                                into power in ways we never dreamed possible. This is the
   As countries around the world take steps to address                        march of progress. I don’t believe it’s a challenge. I see
climate change, generate renewable energy and feed a                          this as a golden age.”
growing world population, agriculture has a major role                           In the future, the competitive edge may belong
to play.                                                                      to farmers and rural communities that start early to
   “It is important to look at this in the broader context                    develop renewable products and invest in new technolo-
of energy security, resource depletion and climate                            gies. In the pages that follow, we present six ways that
change,” says Carole Brookins, former U.S Executive                           farmers and ranchers across the nation already are
Director to the World Bank and vice president of the                          participating in a burgeoning green economy (continued
Chicago Climate Exchange. “If you believe that there                          on page 6).




                                                                                                                                                 Ap phOTO/JOhN FROSChAUER




Jay Gordon on his organic dairy farm in western Washington’s Chehalis Valley near Elma, Wash. 


                                                                                                     Fall 2009  A m e r i c A n FArml And   13
The Farm
                The growth in
                wind power may
                  help to revitalize
                   rural communities
                                           of the
                      and generate
                      new income
                      for farmers.


                                                    2
                                            Agricultural crops
                                       and residues offer significant
                                         new market potential for
                                             farmers as fuel.




                                                            4 More farms may capitalize
                                                             on the growing consumer
                                                               preference for locally
                                                                    grown food.

          3
      Farms and
  ranches may receive
payments from ecosystem
  markets for sheltering
         wildlife.
Future?
new technologies and trends are changing the face of agriculture. Here
are just a few of the ways that farms now—and into the future—are
harvesting new sources of income from “green” products and services.
                                   ILLUSTRATION By AShLEy hALSEy




                                                                                6
                                                                             More
                                                                         dairy farms
                                                                       may recover
                                                                     methane
                                                                    from
                                                                    manure,
                                                                   converting
                                                                   it to natural
                                                                    gas and
                                                                     electricity.




                     5
             Farmers may receive
         payments for practices that
      sequester
      carbon,
     such as
    no-till
   corn
   planting.
renewabLe enerGy
                                                                        The small farm community of Rock Port, Missouri, made
                                                                        national headlines last year when it became the first town
                                                                        in America to run completely on wind power. Towering
                                                                        over Rock Port’s cow pastures and cornfields are four -
                                                                        story wind turbines that harvest the town’s newest crop:
                                                                        wind-generated electricity.
                                                                            Although Rock Port is the first U.S. town to power
                                                                        its every appliance and light with wind energy, wind
                                                                        turbines are becoming a common sight in many Midwest
                                                                        towns. According to the U.S. Department of Energy,
                                                                        America could be  percent wind powered by .
                                                                            “I think you will see in the next three to five years an
                                                                        enormous growth in wind energy that will directly impact
                                                                        rural farm communities,” says Jan Andersen of Wind
                                                                        Capital Group, the St. Louis, Missouri company that
                                                                        erected turbines in Rock Port and is currently developing
                                                                        projects in 6 states.
                                                                            “These wind farms inject millions of dollars into local
                                                                        businesses during construction,” Andersen says. “They
                                                                        also contribute hundreds of thousands—even millions—
                                                                        to local tax revenue. So you can imagine the kind of
                                                                        income these wind farms can generate for rural America,
                                                                        which is struggling right now.”
                                                                            Depending on the size of the turbine and how much
                                                                        wind they generate, farmers can earn between $, to
                                                                        $, per year for each turbine. “There’s little disrup-
                                                                        tion to their day to day farming,” Andersen says. Each
                                                                        turbine requires only about a half acre of land after
                                                                        installation, and farmers can graze cattle or grow crops
                                                                        right up to the turbines.
                                                                            Although his company has a team of field operators
                                                                        who scout out areas with good wind potential, Andersen
                                                                        recommends that farmers and rural communities inter-
                                                                        ested in wind take a proactive approach. “Most farmers
                                                                        will know if they live in a windy area or not,” he says. “A
                                                                        good place to start is to get with your neighbors and see
                                                                        if other people have an interest in this. Then seek out
                                                                        companies like ours.”
                                                                            Other renewable energy sources are just as promising
                                                                        for the nation’s farmers—from solar power to energy gen-
                                                                        erated from plant and animal waste. “There are going to
                                                                        be a lot of efforts to use the whole plant, not just for food
                                                                        and feed but to improve the use of biomass on the farm
                                                                        and for feeding into the electrical grid,” says Brookins.
                                         ISTOCKphOTO/TERRANCE EMERSON




                                                                            “The global demand for energy is not going away,”
                                                                        says Iowa farmer Thomas Dorr, a former Under Secretary
                                                                        for Rural Development at the U.S. Department of
                                                                        Agriculture. “New energy sources will be rural in nature,
                                                                        which will have positive implications for our rural areas.
                                                                        Wind turbines on farmland in Rio Vista, California

16   Americ An FAr m l A n d Fall 2009
There’s a lot of power out there that we can capture and                         Dorr counsels farmers looking to get involved in
utilize. In livestock areas, people will capture that methane                 renewable energy production to step back and rethink
[a greenhouse gas emitted by livestock that can be convert-                   their role as business people. “Producing these new
ed to electricity]. I would not be surprised within  years                  energy resources is going to be substantially different
to see substantial growth in alternative energy resources.”                   than producing a commodity,” he says. “Instead of be-
    For Dorr, the real issue is how that energy will be                       ing ‘price takers,’ farmers will be going into a business
distributed. “We know we have extraordinarily efficient                       venture that has considerable monetary value to it. They
wind technologies—especially in the upper Midwest                             need to work closely with consultants and counselors
and Northwest. But you can only use it if you have the                        and investment advisors to make sure they appreciate
technology to transmit it to population centers. It reminds                   this investment opportunity and capture it in a way
me of what we went through in the development of the                          that’s sustainable.”
microchip—it took time for Texas Instruments to figure
out the technology, but when they did the production was
unbelievable.”
                                                                              bioTechnoLoGy
    “America’s energy demand is not going to go down,”                        Varel Bailey, a crop and livestock farmer in southwest
concurs Andersen. “As our grid stands today, it’s not                         Iowa, recently returned from a trip to Prague, where he
going to be able to handle that capacity. You can liken                       spoke to Czech farmers about new breakthroughs in farm
it to when they built the highway system many years                           technology. Sharing knowledge with farmers in other
ago. The nation needs to tackle our energy infra-                             countries is valuable work to Bailey because farms around
structure in a similar way. On a federal level, we                            the globe will need to become more efficient in order to
need to find a way to level the playing field for                             produce feed and fuel for a world population projected to
renewable energy to com-                                                      reach nine billion in  years.
pete with fossil fuel.”                                                          “I simply say to farmers and bureaucrats in other coun-
                                                                              tries, ‘Biotechnology is not the only answer. But it is one
                                                                              tool,’” Bailey says. “And I tell them they’ve got a choice. If
                                                                              they don’t figure out how to meet the growing demand in
                                                                              the future, they’ll have to import their food.”
                                                                                 In some ways, the European farms that Bailey visits
                                                                              are technologically ahead. He marvels at farms he’s seen
                                                                              in Germany and the Czech Republic where farmers
                                                                              feed their silage (fermented plant stock typically used as
                                                                              livestock feed in the United States) directly into biomass
                                                                              generators that convert the plant matter into electricity to
                                                                              power the farms.
                                                                                 Trends in green technology can help agriculture meet
                                                                              the global demand for food and fuel while addressing
                                                                              climate change, according to a recent study by the World
                                                                              Wildlife Fund. The report found that improved energy
                                                                              efficiency in agriculture, along with new technologies that
                                                                              convert plant and animal waste into fuel, could save the
                                                                              planet up to . billion tons of carbon dioxide emissions
                                                                              per year by .
                                                                                 Bailey is especially excited about “biochar": fuel made
                                                                              out of plant and agricultural matter that provides renew-
                                                                              able energy and addresses climate change by sequestering
                                                                              carbon in the soil.
                                                                                 Whenever he can, Bailey also speaks to farm producers
                                                                              at home about the coming transformation in food and fuel
                                                                              production. His message: “All change is expensive. The
                                                                              best way to reduce the cost of change is to prepare for op-
                                                                              portunities before they come along. Farmers by nature are
Iowa crop and livestock farmer Varel Bailey in front of his hoop buildings 
that decrease energy use.
                                                                              independent people. But they will have to work together,

                                                                                                      Fall 2009  A m e r i c A n FArml And   17
because many of these projects will                                                                The workshops are important,
require a joint effort among farmers                                                           Stuart notes, because in the future,
and communities.”                                                                              officials will be looking to farm
                                                                                               and forestland as a cost effective
                                                                                               way to offset the environmental
ecosysTem markeTs
                                                                                               damage caused by growth. “The
The easement project on dairy                                                                  question is, will the government
farmer Jay Gordon’s land works                                                                 regulate or use incentives?” he
out well. He continues grazing his                                                             asks. “If we don’t get ecosystem
cows on the land as he did before,                                                             markets in place, regulation will
which keeps the willow trees down                                                              become inevitable. But if farms
and provides good habitat for the                                                              are regulated out of business, we
swans. But Gordon has seen other                                                               lose all the environmental benefits.
opportunities for ecosystem protec-                                                            That’s why we need to protect
tion squandered because the habitat                                                            farmland and get the agricultural
value of farmland wasn’t always fully                                                          community engaged in developing
understood or appreciated.                                                                     ecosystem markets that work for
    “There’s a dairy up the valley                                                             farmers and the environment.”
from me that has endangered lupine                                                                 Washington’s conservation
on the farm,” he says of a rare spe-                                                           market legislation was a landmark
cies of the lavender-colored peren-       Oregon’s endangered Fender’s blue butterfly,         first step, Gordon says. But he can’t
nial flower that provides habitat         which depends on the threatened Kincaid’s lupine     shake the feeling that there is much
                                          plant to survive
for an endangered butterfly. “But                                                              more work to be done. “Every time
if you stop grazing there, as some people initially wanted             we lose a chunk of farmland somewhere, or another piece
the farm to do, the fields grow up into invasive species.              of habitat provided by farmland, it adds to my feeling that,
Finally the biologists said, ‘We get it. Your cows don’t eat           ‘Oh gosh, we’ve got to work on this harder.’”
lupine so they’re keeping this habitat alive for the endan-
gered butterflies to feed on.’”
    Times are changing, however. Officials in the Pacific
                                                                       LocaL Food
Northwest and around the country increasingly are rec-                 In Fairfax County, Virginia, next to Tyson’s Corner—
ognizing—and placing a monetary value on—the many                      one of the nation’s biggest malls—is a small farm stand
ecological benefits provided by farmland. In 8, the                 with a green sign reading, “Potomac Vegetable Farms.”
Washington state legislature passed SB 8, a bill that               Multi-million dollar houses sprout up in surrounding
establishes private “ecosystem markets” to compensate                  fields, but farm owner Hui Newcomb, her daughter Hana
farm and forest landowners for providing environmental                 and their partner Ellen Polishuk have found a way to
services, from wildlife habitat to water purification and              turn the intensely suburban location into more of a boon
flood control.                                                         than a burden.
    Such ecosystem markets currently take three forms, ad-                 A worker picks garlic scapes out of green buckets, as
dressing air emissions, water quality or habitat and biodi-            a neighboring Salvadoran family stops by the farm to
versity. In private trading systems, the market determines             purchase a live chicken. The garlic scapes are bundled with
a value for environmental benefits and has a system to buy             rubber bands to prepare for the week’s farmers markets
and sell those benefits in the form of credits. Public pay-            in Washington, D.C., where the farm sells a cornucopia
ments may come from government programs that reward                    of freshly picked veggies and fruits: lettuce, Chinese cab-
farmers with conservation payments for their stewardship.              bage, mixed mustards, Swiss chard, sugar snap peas, sweet
    “The landscape is very environmentally sensitive                   onions, dandelion greens.
here. There’s lots of water, lots of agriculture and a                     In the 6s, when Hui and her husband Tony first
rapidly growing population,” says Don Stuart, American                 started farming in the area, Tyson’s Corner was a little
Farmland Trust’s Pacific Northwest director, who worked                crossroads, with “cattle lolling under the peach trees.” The
to get the SB 68 legislation passed and holds workshops              couple grew sweet corn on  acres of rented land. “That
throughout the Pacific Northwest to help farmers and ag-               was our main crop,” Newcomb says. “We had a reputa-
ricultural groups become more familiar with the concept                tion for great sweet corn. When we started, we were 
of ecosystem markets.                                                  percent wholesale. Now we’re five percent wholesale.”

18   Americ An FAr m l A n d Fall 2009
These days, the farm generates about a third of its
income from farmers markets, a third from its roadside
stand and a third from selling CSA shares (where custom-
ers purchase a portion of the season’s harvest). It also sells
directly to a few restaurants and delis in the area. Despite
the economic downturn, their sales are better than ever.
“If someone complains that it’s three dollars for a bunch
of chard, I say, ‘What else are you buying for three dol-
lars that’s as good and healthy for you?” Newcomb says.
“What’s more important than what you put in your
mouth and body?”
   Like Newcomb, many farmers around the country—
especially those in urban-edge locations—are selling their
goods directly to consumers who are eager to buy locally
grown food. Some customers are driven by concerns
about food safety; others find that farm fresh food tastes
better and enjoy the experience of knowing the person
who grew the food.




                                                                                                                                                         KIRSTEN FERGUSON
   In October, Agriculture Secretary Tom Vilsack an-
nounced that the number of farmers markets in the
United States grew by more than  percent from last




                                                                                                                                                           KIRSTEN FERGUSON




(top) hui Newcomb; (below) potomac Vegetable Farms in Fairfax County, Virginia, now sells 95 percent of its produce locally.

                                                                                                             Fall 2009  A m e r i c A n FArml And   19
year (to a total of , markets nationwide). “I think local                    healthcare companies will have more people that they’re
food systems are going to continue to grow and expand                            serving. Prevention measures will become more im-
in the next decade. We’ve seen a significant increase                            portant, and they’ll pay more attention to obesity and
in demand,” says Jerry Kaufman, a Professor Emeritus                             diet-induced health problems. Food is going to become
in urban and regional planning at the University of                              more important.”
Wisconsin-Madison. “I think it is spreading to all parts of                         The “explosion” of food policy councils— organizations
the country.”                                                                    created in many areas to expand the capacity for local and
   Kaufman notes that several factors are driving the                            regional food—is another factor, as well as the growing
burgeoning local foods movement, in addition to a grow-                          number of cities, towns and planners addressing local
ing consumer awareness. One is increasing corporate                              food systems for the first time. “The notion of scaling up
interest. Kaufman serves as president of Growing Power,                          consumption of locally grown foods is something local
a nonprofit in Milwaukee, Wisconsin, that recently helped                        governments have become interested in,” he says. “How
Kohl’s department store install three vegetable gardens                          do you do that? You need more farmers to produce local
on their corporate campus. “I think that’s a wave of the                         food, better distribution centers in the region, land avail-
future when major corporations are becoming aware that                           able for production of local food, and you need to get local
the good food movement has appeal, not only for the                              food into the mouths of people connected to big institu-
health implications for employees but also because they                          tions, like hospitals, schools and corporations.”
want to be out front doing things that give them a better                           The surge in consumer demand for local food provides
public image,” Kaufman says.                                                     new market potential for all farmers, Kaufman says. “I
   Kaufman also sees the potential for health care                               don’t see why a conventional farmer couldn’t see there is
reform to be a major driver, particularly if new health                          a market opportunity in growing local food—maybe as
care legislation insures more Americans and prohibits                            only a small part of their operation, but they do have the
insurance companies from denying coverage on the                                 land. It seems to me that an entrepreneurial farmer would
basis of preexisting conditions. “If that happens, then                          see that as an opportunity.”




Farmers in the Chesapeake Bay watershed are joining efforts to reduce fertilizer use and nitrogen runoff.

20   Americ A n FAr m l A n d Fall 2009
American Farmland Trust’s Mid-Atlantic director Jim Baird (right) speaks with a farmer participating in AFT’s BMp Challenge.              GRETChEN hOFFMAN




waTer crediTs                                                                    as a result. “Certain environmental practices are risky,”
                                                                                 Brubaker says. “We have conservation plans on  per-
More than  rivers and streams drain into the                                  cent of our lands that we farm. That is not risky to me.
Chesapeake Bay, the nation’s largest estuary, which covers                       But reducing nitrogen fertilizer I felt was a little more
parts of six Mid-Atlantic region states. In the s, ma-                       risky. This program helps us cover that risk.”
rine dead zones were first identified in the shallow bay—                           American Farmland Trust is also working with
areas where large algal blooms, fed by farm and industrial                       Chesapeake Bay farmers to generate “nutrient credits”
runoff, depleted the water of oxygen, killing off fish and                       from their fertilizer reductions, which they can then sell
aquatic vegetation. Since then, efforts have been underway                       through a water quality trading market set up by the state
to clean up the bay and its tributaries, with mixed results.                     Department of Environmental Protection (DEP).
   Four bay jurisdictions—Maryland, Pennsylvania,                                   “Wastewater treatment plants can only discharge so
Virginia and the District of Columbia—have committed                             much nitrogen,” explains Jim Baird, American Farmland
to significantly reduce pollutants by , setting goals                        Trust’s Mid-Atlantic director. “But say  families
to reduce nitrogen from agriculture by nearly 6 million                         just moved into their area—now they’ve got a problem
pounds annually—approximately 6 percent of the reduc-                           because they’re over the limit. Under a nutrient trading
tion needed to restore the bay and its tributaries.                              system, they could go to a farmer and say, ‘Hey, if you
   Mike Brubaker, a dairy and poultry farmer in East                             remove so much nitrogen, we’ll pay you.’”
Donegal Township, Pennsylvania, is one of  Chesapeake                             Brubaker was one of the first Pennsylvania farmers to
Bay farmers enrolled in an American Farmland Trust                               participate in a nutrient trade. When a municipal waste
pilot program, the BMP Challenge, that helps him reduce                          treatment plant needed to reduce its emissions, it paid for
his use of nitrogen fertilizer through no-till planting,                         some plant upgrades but also purchased nutrient credits
covering his loss of income if his crop yields are lower                         from Brubaker, who in turn cut down on his nitrogen use

                                                                                                               Fall 2009  A m e r i c A n FArml And    21
helping farmers make the “Green Leap”
American Farmland Trust’s Role
in coming decades, farmers and ranchers will be depend-         allowing farmers to
ed on to increase their productivity to meet the food, fiber    adopt risk-free con-
and energy needs of a rapidly growing global population.        servation practices.
at the same time, they will be expected to help address cli-    american Farmland trust’s
mate change and become more sustainable in their use of         pioneering bmp challenge
natural resources—all while withstanding increasing urban       program has helped crop
development pressure on their land. to do so, they need         farmers adopt conservation
help with conservation practices, national and regional         practices that minimize fer-
leadership, and workable policies developed for the next        tilizer use, protect water and soil, and reduce greenhouse
century, not the last.                                          gases. Farmers often fear that they will suffer from smaller
   american Farmland trust works on a number of fronts          crop yields and a loss of income when they adopt new
to help farmers and ranchers transition to a new, greener       conservation techniques, but american Farmland trust’s
economy. We are:                                                program—expanding around the country—protects
                                                                producers from financial loss when they implement healthy
protecting farmland                                             farming practices.
and fighting sprawl.
Without farm and ranch                                          helping communities
land, the nation loses the                                      grow local. the con-
foundation for its efforts                                      sumer demand for locally
to fight climate change,                                        grown food is booming,
grow healthy food, produce                                      but farms—particularly
renewable energy and pro-                                       those on the urban edge
tect the environment. american Farmland trust continues         where most of our fruits,
to make farm and ranch land protection the underpinning         vegetables and dairy
of our work, partnering with states and local governments       products are grown—are threatened by sprawling devel-
around the country to help landowners protect their land        opment, difficult market conditions and a host of other
and communities plan for the future.                            challenges. american Farmland trust’s Growing Local ini-
                                                                tiative is helping communities plan for local and regional
developing ecosystem                                            food systems, save farmland and improve access to local
markets. in coming years,                                       food for their citizens.
farmers and industries face
increasing regulations of                                       supporting policies
water quality and green-                                        that work for farmers
house gas emissions. at                                         and the environment.
the same time, farmers and                                      american Farmland trust
ranchers have the potential                                     works on both national
to help offset greenhouse gases, reduce water pollution         and state legislation to
and restore wildlife habitat in significant ways. american      make sure the nation’s
Farmland trust’s Agriculture & Environment initiative is        food, farm, transporta-
working—on pilot projects in places like the ohio river         tion and conservation policies protect farmland, promote
basin and chesapeake bay—to establish the framework             sound stewardship of working lands, and allow farms and
for ecosystem trading markets that compensate farmers for       ranches to stay profitable. this will be ever more important
their use of conservation practices that benefit the environ-   as the nation adopts increasing regulations and legislation
ment and fight climate change.                                  related to water quality and climate change—farmers need
                                                                an advocate to make sure such policies work for farmers,
to learn more, visit www.farmland.org.                          the environment and the nation.

22   Americ A n FAr m l A n d Fall 2009
by using no-till planting on his fields. He received over         and phosphorus—are not meeting their stated uses, says
$, over three years for the deal.                           Mark Kieser, an environmental engineer working with
   “It helped save the taxpayer’s money that they didn’t          American Farmland Trust and other partners to develop
have to do  percent of the plant upgrades,” Brubaker           water quality trading programs in the Ohio River basin
says. “And it provided revenue for us that helped us make         and Minnesota’s Sauk River watershed.
our margins that are so tight. I think that nutrient trad-           Municipalities are going to be regulated more and
ing can be another piece of the puzzle for agriculture in         more, Kieser says, including not just wastewater but also
the future. Farmers have to continue to search for ways           urban storm water. “Permitted discharges are going to be
to better use their resources. You hear about negative            much lower—that’s going to be high cost and that’s where
things that happen on farms, but there are so many good           trading comes in, which leads to economic opportunities
things that are happening all the time that farmers don’t         for agriculture,” Kieser says. “Trading is not going to
get rewarded for. This would be a way not only to reward          work everywhere. It’s not going to be needed everywhere.
farmers but also to provide a little food for the table of        But where there’s significant cost for plants to make im-
struggling farm families.”                                        provements, and significant environmental benefits to be
   Don McNutt of the Lancaster County conservation                had, those are the areas you’ll see trading.”
district helped to facilitate Brubaker’s trade and worked            Smith agrees regulation will be the driving force
last year with three other Pennsylvania farmers trying to         behind ecosystem trading markets. “There’s got to be
generate credits. Although the credits were certified by          something that makes environmental damage costly and
the DEP, he couldn’t find a buyer. “With trading it’s not         therefore makes environmental benefits valuable,” she
simple,” McNutt says. “Right now, industries are having           says. “Right now they’re free to everybody.”
a hard time getting comfortable with trading because a
farmer cannot guarantee they’ll be around in  years.
Trading feels risky, so it’s got to be a better deal than plant
                                                                  carbon TradinG
upgrades—brick and mortar. What would help to move                Regulatory action will also be the driving force behind the
the trading program forward is more buyers, and those             development of carbon trading markets that pay farmers
buyers need to have a comfort level in those credits.”            to help offset greenhouse gases, Smith says. “It will be
   In some water quality trading markets, an aggregator           a whole new ball game in  years. We’re going to have
or broker pools the nutrient credits and keeps some in            some regulation of carbon and a market will rise. We’ll go
reserve, insuring they are available. “Farmers have to            through a lot of pain to get it working. But once it works
have some way to transact with buyers of environmental            with carbon, we’ll have a model for how it can work on a
services. That’s not always easy. Right now there isn’t an        national or global level.”
institution set up to do that,” says Kitty Smith of the U.S.         Mike Walsh, director of research at the Chicago
Department of Agriculture’s Environmental Research                Climate Exchange, the first voluntary program for the
Service. “Another barrier is verification of service—the          trading of greenhouse gases in the United States, agrees
buyer wants to have evidence that the seller has done what        that regulation is coming. “There’s going to be organized
they said they did. The larger the market becomes, the            regulatory action in the United States—whether through
more necessary it is to have rules and scientific evidence.       legislation or the EPA,” he says. “Exactly how we’ll move
Land tenure is a really important issue. Contracts have to        forward is hard to predict.”
be multi-year, but what happens if you sell the farm?”               His program pays farmers for generating carbon
   McNutt and others are looking to  when tighter             credits on their land—mostly through continuous
restrictions on water quality may come into play. “Right          conservation tillage practices that sequester carbon in
now there’s a whole lot of talk about the potential for hav-      the soil. Other farmers are receiving payments for rota-
ing considerably more regulation to clean up the bay,” says       tional grazing practices that allow grasses to recover and
Baird. “One of the conclusions is we have to reduce nitro-        grow, holding carbon in the soil. A smaller number are
gen in the water by  percent. That’s a huge amount of           generating credits for planting buffer strips and trees or
reduction from all the contributors—not only farmers but          for capturing methane on dairy farms. The credits are
also suburban and urban sources. But there is a window of         then bundled and sold to companies who sign contracts
opportunity. If we can take the things we’re doing and re-        agreeing to reduce their greenhouse gas emissions.
ally scale them up, then we could lessen the blow of these           The Chicago Climate Exchange currently has 6 mil-
regulations. The BMP Challenge is one slice of that.”             lion acres of productive land enrolled. “All the best viable
   Under the Clean Water Act, many waters around the              solutions are going to have to be employed,” to address
country—impaired by over-enrichment from nitrogen                 climate change, Walsh says. “There is an appreciation

                                                                                          Fall 2009  A m e r i c A n FArml And   23
that these agricultural practices are win/win. They                          groups, my message is get up to speed, get involved, do
are good for protecting agriculture from the effects of                      some investigation.”
global warming, good for soaking up carbon, good for                            “Whether there’s government regulation or not, we’re
soil quality and water quality. They’re good for the U.S.                    going to see the downstream of the food chain demanding
agricultural economy and good for the landscape. We see                      better resource management—there will be labeling for
scenarios where in a relatively short period of time, green-                 consumers and packaging,” says Carole Brookins. “The
house gas mitigation services could grow to have a value                     Walmarts of the world are going to be saying to suppli-
of  percent of net farm income. We could potentially                       ers—you’re going to have to reduce your carbon footprint
see $ billion in income activity for the farm sector as a                  and your water footprint. In part it will be market and
result. This can help keep farmland in farms. As our CEO                     consumer driven and in part driven by regulation.”
often says, ‘There are above-ground crops, and there’s a                        Despite the many transitions taking place in agri-
below-ground crop: carbon.’”                                                 culture, Brookins offers a reminder that agriculture
                                                                             has always adapted to meet the challenges of the times.
                                                                             “Farmers have always been practicing sustainable agricul-
The cominG TransiTion                                                        ture,” she says. “Farmers have always wanted to maintain
Going forward, Varel Bailey believes farmers need to get                     their farms in ways to pass them down to their children.
more engaged in the discussion about carbon and water                        My takeaway is that this isn’t a time to be afraid. It’s a
quality, in advance of coming regulation. “Farmers need                      time to be creative and innovative and look at policies that
to start now in learning about carbon and water trading                      are going to benefit agriculture to optimize this transition
markets and how they can take advantage of them,” says                       we’re going through—this new industrial age. We have an
Bailey. “When I have the opportunity to speak to farm                        amazing capacity for innovation.”




                                                                                                                                                      Ap phOTO/READING EAGLE, TIM LEEDy




Eric Rosenbaum on his 150-acre family farm in Birdsboro, pa. Rosenbaum receives money through a program run by the Chicago Climate Exchange, which 
pays farmers for practices that remove carbon dioxide from the air. 

24   Americ A n FAr m l A n d Fall 2009

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How green technologies and green market opportunities can transform agriculture

  • 1. The Green Leap D Will green riving down a highway in dairy farm near Elma, Washington. northwestern Washington, en “Instead of having another frog pond route from a meeting in his role as director of the Washington technologies and along the freeway, you could have protected farmland, protected water State Dairy Federation, Jay Gordon can’t help but ponder whether some green market and protected Trumpeter habitat. That seems like a fair trade to me.” of the state’s highway beautification Working with American Farmland money would be better spent protect- opportunities Trust, the Trumpeter Swan Society, ing the Skagit Valley farmland that Capitol Land Trust and the National provides feeding habitat to a quarter transform Parks Foundation, Gordon received of the world’s Trumpeter Swans. funding several years ago for an More than , Trumpeter Swans—their population dwindling agriculture? easement protecting farmland that shelters swans displaced from an area in recent years—migrate from their By KIRSTEN FERGUSON further north along the Olympic summer breeding grounds in Alaska Peninsula’s Elwah River. to warmer winter climates in south- It takes education, Gordon says, for ern British Columbia and the Pacific people to realize that farmland is the Northwest. The largest waterfowl species native to North preferred habitat for some species, such as an endangered America, the swans prefer to roost in grassy fields and spotted frog that thrives on Washington’s grazed wetlands. farmland near water. “We need to keep the farmland. There’s a reason the frogs “With some of the money spent on landscape projects by state highways, you could buy development rights above : A juvenile Trumpeter Swan takes off from a cornfield near  on farmland,” says Gordon, who operates an organic Nooksack, Wash.  Ap phOTO/ELAINE ThOMpSON 12 Americ An FAr m l An d Fall 2009
  • 2. and birds are there,” Gordon says. “There’s a reason the are going to be eight to nine billion people living on this farms are there.” planet, then we’re going to have to manage resources Gordon is just one of many farmers around the country better. If you believe that climate change will force us participating in the “green economy,” an emerging mar- to change our agricultural practices and rely less on oil ketplace that extends the economic notion of “capital” to production, then we’re going to have to become much environmental (or “natural”) goods and services. Whether more innovative.” improving water quality or helping to reduce greenhouse Coming changes in how we manage our resources rep- gas emissions, farmers increasingly are being paid to resent not a threat to agriculture but a great opportunity, produce environmental benefits, renewable energy, locally Brookins says. “Agriculture has always taken a lead on grown food and other “green” products. this. We’ve moved to improve irrigation and genetically Last year, the United Nations Environment breed crops that are drought resistant. Technology has Programme (UNEP) called for a “Global Green New allowed us to speed up the process of developing hybrids. Deal” to lead the world out of economic crisis through a Technology is going to help us better utilize our biologi- surge in green jobs and a restructuring of the global eco- cal materials in the soils and convert our animal waste nomic system to reduce fossil fuel dependence. into power in ways we never dreamed possible. This is the As countries around the world take steps to address march of progress. I don’t believe it’s a challenge. I see climate change, generate renewable energy and feed a this as a golden age.” growing world population, agriculture has a major role In the future, the competitive edge may belong to play. to farmers and rural communities that start early to “It is important to look at this in the broader context develop renewable products and invest in new technolo- of energy security, resource depletion and climate gies. In the pages that follow, we present six ways that change,” says Carole Brookins, former U.S Executive farmers and ranchers across the nation already are Director to the World Bank and vice president of the participating in a burgeoning green economy (continued Chicago Climate Exchange. “If you believe that there on page 6). Ap phOTO/JOhN FROSChAUER Jay Gordon on his organic dairy farm in western Washington’s Chehalis Valley near Elma, Wash.  Fall 2009  A m e r i c A n FArml And 13
  • 3. The Farm  The growth in wind power may help to revitalize rural communities of the and generate new income for farmers. 2 Agricultural crops and residues offer significant new market potential for farmers as fuel. 4 More farms may capitalize on the growing consumer preference for locally grown food. 3 Farms and ranches may receive payments from ecosystem markets for sheltering wildlife.
  • 4. Future? new technologies and trends are changing the face of agriculture. Here are just a few of the ways that farms now—and into the future—are harvesting new sources of income from “green” products and services. ILLUSTRATION By AShLEy hALSEy 6 More dairy farms may recover methane from manure, converting it to natural gas and electricity. 5 Farmers may receive payments for practices that sequester carbon, such as no-till corn planting.
  • 5. renewabLe enerGy The small farm community of Rock Port, Missouri, made national headlines last year when it became the first town in America to run completely on wind power. Towering over Rock Port’s cow pastures and cornfields are four - story wind turbines that harvest the town’s newest crop: wind-generated electricity. Although Rock Port is the first U.S. town to power its every appliance and light with wind energy, wind turbines are becoming a common sight in many Midwest towns. According to the U.S. Department of Energy, America could be  percent wind powered by . “I think you will see in the next three to five years an enormous growth in wind energy that will directly impact rural farm communities,” says Jan Andersen of Wind Capital Group, the St. Louis, Missouri company that erected turbines in Rock Port and is currently developing projects in 6 states. “These wind farms inject millions of dollars into local businesses during construction,” Andersen says. “They also contribute hundreds of thousands—even millions— to local tax revenue. So you can imagine the kind of income these wind farms can generate for rural America, which is struggling right now.” Depending on the size of the turbine and how much wind they generate, farmers can earn between $, to $, per year for each turbine. “There’s little disrup- tion to their day to day farming,” Andersen says. Each turbine requires only about a half acre of land after installation, and farmers can graze cattle or grow crops right up to the turbines. Although his company has a team of field operators who scout out areas with good wind potential, Andersen recommends that farmers and rural communities inter- ested in wind take a proactive approach. “Most farmers will know if they live in a windy area or not,” he says. “A good place to start is to get with your neighbors and see if other people have an interest in this. Then seek out companies like ours.” Other renewable energy sources are just as promising for the nation’s farmers—from solar power to energy gen- erated from plant and animal waste. “There are going to be a lot of efforts to use the whole plant, not just for food and feed but to improve the use of biomass on the farm and for feeding into the electrical grid,” says Brookins. ISTOCKphOTO/TERRANCE EMERSON “The global demand for energy is not going away,” says Iowa farmer Thomas Dorr, a former Under Secretary for Rural Development at the U.S. Department of Agriculture. “New energy sources will be rural in nature, which will have positive implications for our rural areas. Wind turbines on farmland in Rio Vista, California 16 Americ An FAr m l A n d Fall 2009
  • 6. There’s a lot of power out there that we can capture and Dorr counsels farmers looking to get involved in utilize. In livestock areas, people will capture that methane renewable energy production to step back and rethink [a greenhouse gas emitted by livestock that can be convert- their role as business people. “Producing these new ed to electricity]. I would not be surprised within  years energy resources is going to be substantially different to see substantial growth in alternative energy resources.” than producing a commodity,” he says. “Instead of be- For Dorr, the real issue is how that energy will be ing ‘price takers,’ farmers will be going into a business distributed. “We know we have extraordinarily efficient venture that has considerable monetary value to it. They wind technologies—especially in the upper Midwest need to work closely with consultants and counselors and Northwest. But you can only use it if you have the and investment advisors to make sure they appreciate technology to transmit it to population centers. It reminds this investment opportunity and capture it in a way me of what we went through in the development of the that’s sustainable.” microchip—it took time for Texas Instruments to figure out the technology, but when they did the production was unbelievable.” bioTechnoLoGy “America’s energy demand is not going to go down,” Varel Bailey, a crop and livestock farmer in southwest concurs Andersen. “As our grid stands today, it’s not Iowa, recently returned from a trip to Prague, where he going to be able to handle that capacity. You can liken spoke to Czech farmers about new breakthroughs in farm it to when they built the highway system many years technology. Sharing knowledge with farmers in other ago. The nation needs to tackle our energy infra- countries is valuable work to Bailey because farms around structure in a similar way. On a federal level, we the globe will need to become more efficient in order to need to find a way to level the playing field for produce feed and fuel for a world population projected to renewable energy to com- reach nine billion in  years. pete with fossil fuel.” “I simply say to farmers and bureaucrats in other coun- tries, ‘Biotechnology is not the only answer. But it is one tool,’” Bailey says. “And I tell them they’ve got a choice. If they don’t figure out how to meet the growing demand in the future, they’ll have to import their food.” In some ways, the European farms that Bailey visits are technologically ahead. He marvels at farms he’s seen in Germany and the Czech Republic where farmers feed their silage (fermented plant stock typically used as livestock feed in the United States) directly into biomass generators that convert the plant matter into electricity to power the farms. Trends in green technology can help agriculture meet the global demand for food and fuel while addressing climate change, according to a recent study by the World Wildlife Fund. The report found that improved energy efficiency in agriculture, along with new technologies that convert plant and animal waste into fuel, could save the planet up to . billion tons of carbon dioxide emissions per year by . Bailey is especially excited about “biochar": fuel made out of plant and agricultural matter that provides renew- able energy and addresses climate change by sequestering carbon in the soil. Whenever he can, Bailey also speaks to farm producers at home about the coming transformation in food and fuel production. His message: “All change is expensive. The best way to reduce the cost of change is to prepare for op- portunities before they come along. Farmers by nature are Iowa crop and livestock farmer Varel Bailey in front of his hoop buildings  that decrease energy use. independent people. But they will have to work together, Fall 2009  A m e r i c A n FArml And 17
  • 7. because many of these projects will The workshops are important, require a joint effort among farmers Stuart notes, because in the future, and communities.” officials will be looking to farm and forestland as a cost effective way to offset the environmental ecosysTem markeTs damage caused by growth. “The The easement project on dairy question is, will the government farmer Jay Gordon’s land works regulate or use incentives?” he out well. He continues grazing his asks. “If we don’t get ecosystem cows on the land as he did before, markets in place, regulation will which keeps the willow trees down become inevitable. But if farms and provides good habitat for the are regulated out of business, we swans. But Gordon has seen other lose all the environmental benefits. opportunities for ecosystem protec- That’s why we need to protect tion squandered because the habitat farmland and get the agricultural value of farmland wasn’t always fully community engaged in developing understood or appreciated. ecosystem markets that work for “There’s a dairy up the valley farmers and the environment.” from me that has endangered lupine Washington’s conservation on the farm,” he says of a rare spe- market legislation was a landmark cies of the lavender-colored peren- Oregon’s endangered Fender’s blue butterfly,   first step, Gordon says. But he can’t nial flower that provides habitat which depends on the threatened Kincaid’s lupine   shake the feeling that there is much plant to survive for an endangered butterfly. “But more work to be done. “Every time if you stop grazing there, as some people initially wanted we lose a chunk of farmland somewhere, or another piece the farm to do, the fields grow up into invasive species. of habitat provided by farmland, it adds to my feeling that, Finally the biologists said, ‘We get it. Your cows don’t eat ‘Oh gosh, we’ve got to work on this harder.’” lupine so they’re keeping this habitat alive for the endan- gered butterflies to feed on.’” Times are changing, however. Officials in the Pacific LocaL Food Northwest and around the country increasingly are rec- In Fairfax County, Virginia, next to Tyson’s Corner— ognizing—and placing a monetary value on—the many one of the nation’s biggest malls—is a small farm stand ecological benefits provided by farmland. In 8, the with a green sign reading, “Potomac Vegetable Farms.” Washington state legislature passed SB 8, a bill that Multi-million dollar houses sprout up in surrounding establishes private “ecosystem markets” to compensate fields, but farm owner Hui Newcomb, her daughter Hana farm and forest landowners for providing environmental and their partner Ellen Polishuk have found a way to services, from wildlife habitat to water purification and turn the intensely suburban location into more of a boon flood control. than a burden. Such ecosystem markets currently take three forms, ad- A worker picks garlic scapes out of green buckets, as dressing air emissions, water quality or habitat and biodi- a neighboring Salvadoran family stops by the farm to versity. In private trading systems, the market determines purchase a live chicken. The garlic scapes are bundled with a value for environmental benefits and has a system to buy rubber bands to prepare for the week’s farmers markets and sell those benefits in the form of credits. Public pay- in Washington, D.C., where the farm sells a cornucopia ments may come from government programs that reward of freshly picked veggies and fruits: lettuce, Chinese cab- farmers with conservation payments for their stewardship. bage, mixed mustards, Swiss chard, sugar snap peas, sweet “The landscape is very environmentally sensitive onions, dandelion greens. here. There’s lots of water, lots of agriculture and a In the 6s, when Hui and her husband Tony first rapidly growing population,” says Don Stuart, American started farming in the area, Tyson’s Corner was a little Farmland Trust’s Pacific Northwest director, who worked crossroads, with “cattle lolling under the peach trees.” The to get the SB 68 legislation passed and holds workshops couple grew sweet corn on  acres of rented land. “That throughout the Pacific Northwest to help farmers and ag- was our main crop,” Newcomb says. “We had a reputa- ricultural groups become more familiar with the concept tion for great sweet corn. When we started, we were  of ecosystem markets. percent wholesale. Now we’re five percent wholesale.” 18 Americ An FAr m l A n d Fall 2009
  • 8. These days, the farm generates about a third of its income from farmers markets, a third from its roadside stand and a third from selling CSA shares (where custom- ers purchase a portion of the season’s harvest). It also sells directly to a few restaurants and delis in the area. Despite the economic downturn, their sales are better than ever. “If someone complains that it’s three dollars for a bunch of chard, I say, ‘What else are you buying for three dol- lars that’s as good and healthy for you?” Newcomb says. “What’s more important than what you put in your mouth and body?” Like Newcomb, many farmers around the country— especially those in urban-edge locations—are selling their goods directly to consumers who are eager to buy locally grown food. Some customers are driven by concerns about food safety; others find that farm fresh food tastes better and enjoy the experience of knowing the person who grew the food. KIRSTEN FERGUSON In October, Agriculture Secretary Tom Vilsack an- nounced that the number of farmers markets in the United States grew by more than  percent from last KIRSTEN FERGUSON (top) hui Newcomb; (below) potomac Vegetable Farms in Fairfax County, Virginia, now sells 95 percent of its produce locally. Fall 2009  A m e r i c A n FArml And 19
  • 9. year (to a total of , markets nationwide). “I think local healthcare companies will have more people that they’re food systems are going to continue to grow and expand serving. Prevention measures will become more im- in the next decade. We’ve seen a significant increase portant, and they’ll pay more attention to obesity and in demand,” says Jerry Kaufman, a Professor Emeritus diet-induced health problems. Food is going to become in urban and regional planning at the University of more important.” Wisconsin-Madison. “I think it is spreading to all parts of The “explosion” of food policy councils— organizations the country.” created in many areas to expand the capacity for local and Kaufman notes that several factors are driving the regional food—is another factor, as well as the growing burgeoning local foods movement, in addition to a grow- number of cities, towns and planners addressing local ing consumer awareness. One is increasing corporate food systems for the first time. “The notion of scaling up interest. Kaufman serves as president of Growing Power, consumption of locally grown foods is something local a nonprofit in Milwaukee, Wisconsin, that recently helped governments have become interested in,” he says. “How Kohl’s department store install three vegetable gardens do you do that? You need more farmers to produce local on their corporate campus. “I think that’s a wave of the food, better distribution centers in the region, land avail- future when major corporations are becoming aware that able for production of local food, and you need to get local the good food movement has appeal, not only for the food into the mouths of people connected to big institu- health implications for employees but also because they tions, like hospitals, schools and corporations.” want to be out front doing things that give them a better The surge in consumer demand for local food provides public image,” Kaufman says. new market potential for all farmers, Kaufman says. “I Kaufman also sees the potential for health care don’t see why a conventional farmer couldn’t see there is reform to be a major driver, particularly if new health a market opportunity in growing local food—maybe as care legislation insures more Americans and prohibits only a small part of their operation, but they do have the insurance companies from denying coverage on the land. It seems to me that an entrepreneurial farmer would basis of preexisting conditions. “If that happens, then see that as an opportunity.” Farmers in the Chesapeake Bay watershed are joining efforts to reduce fertilizer use and nitrogen runoff. 20 Americ A n FAr m l A n d Fall 2009
  • 10. American Farmland Trust’s Mid-Atlantic director Jim Baird (right) speaks with a farmer participating in AFT’s BMp Challenge. GRETChEN hOFFMAN waTer crediTs as a result. “Certain environmental practices are risky,” Brubaker says. “We have conservation plans on  per- More than  rivers and streams drain into the cent of our lands that we farm. That is not risky to me. Chesapeake Bay, the nation’s largest estuary, which covers But reducing nitrogen fertilizer I felt was a little more parts of six Mid-Atlantic region states. In the s, ma- risky. This program helps us cover that risk.” rine dead zones were first identified in the shallow bay— American Farmland Trust is also working with areas where large algal blooms, fed by farm and industrial Chesapeake Bay farmers to generate “nutrient credits” runoff, depleted the water of oxygen, killing off fish and from their fertilizer reductions, which they can then sell aquatic vegetation. Since then, efforts have been underway through a water quality trading market set up by the state to clean up the bay and its tributaries, with mixed results. Department of Environmental Protection (DEP). Four bay jurisdictions—Maryland, Pennsylvania, “Wastewater treatment plants can only discharge so Virginia and the District of Columbia—have committed much nitrogen,” explains Jim Baird, American Farmland to significantly reduce pollutants by , setting goals Trust’s Mid-Atlantic director. “But say  families to reduce nitrogen from agriculture by nearly 6 million just moved into their area—now they’ve got a problem pounds annually—approximately 6 percent of the reduc- because they’re over the limit. Under a nutrient trading tion needed to restore the bay and its tributaries. system, they could go to a farmer and say, ‘Hey, if you Mike Brubaker, a dairy and poultry farmer in East remove so much nitrogen, we’ll pay you.’” Donegal Township, Pennsylvania, is one of  Chesapeake Brubaker was one of the first Pennsylvania farmers to Bay farmers enrolled in an American Farmland Trust participate in a nutrient trade. When a municipal waste pilot program, the BMP Challenge, that helps him reduce treatment plant needed to reduce its emissions, it paid for his use of nitrogen fertilizer through no-till planting, some plant upgrades but also purchased nutrient credits covering his loss of income if his crop yields are lower from Brubaker, who in turn cut down on his nitrogen use Fall 2009  A m e r i c A n FArml And 21
  • 11. helping farmers make the “Green Leap” American Farmland Trust’s Role in coming decades, farmers and ranchers will be depend- allowing farmers to ed on to increase their productivity to meet the food, fiber adopt risk-free con- and energy needs of a rapidly growing global population. servation practices. at the same time, they will be expected to help address cli- american Farmland trust’s mate change and become more sustainable in their use of pioneering bmp challenge natural resources—all while withstanding increasing urban program has helped crop development pressure on their land. to do so, they need farmers adopt conservation help with conservation practices, national and regional practices that minimize fer- leadership, and workable policies developed for the next tilizer use, protect water and soil, and reduce greenhouse century, not the last. gases. Farmers often fear that they will suffer from smaller american Farmland trust works on a number of fronts crop yields and a loss of income when they adopt new to help farmers and ranchers transition to a new, greener conservation techniques, but american Farmland trust’s economy. We are: program—expanding around the country—protects producers from financial loss when they implement healthy protecting farmland farming practices. and fighting sprawl. Without farm and ranch helping communities land, the nation loses the grow local. the con- foundation for its efforts sumer demand for locally to fight climate change, grown food is booming, grow healthy food, produce but farms—particularly renewable energy and pro- those on the urban edge tect the environment. american Farmland trust continues where most of our fruits, to make farm and ranch land protection the underpinning vegetables and dairy of our work, partnering with states and local governments products are grown—are threatened by sprawling devel- around the country to help landowners protect their land opment, difficult market conditions and a host of other and communities plan for the future. challenges. american Farmland trust’s Growing Local ini- tiative is helping communities plan for local and regional developing ecosystem food systems, save farmland and improve access to local markets. in coming years, food for their citizens. farmers and industries face increasing regulations of supporting policies water quality and green- that work for farmers house gas emissions. at and the environment. the same time, farmers and american Farmland trust ranchers have the potential works on both national to help offset greenhouse gases, reduce water pollution and state legislation to and restore wildlife habitat in significant ways. american make sure the nation’s Farmland trust’s Agriculture & Environment initiative is food, farm, transporta- working—on pilot projects in places like the ohio river tion and conservation policies protect farmland, promote basin and chesapeake bay—to establish the framework sound stewardship of working lands, and allow farms and for ecosystem trading markets that compensate farmers for ranches to stay profitable. this will be ever more important their use of conservation practices that benefit the environ- as the nation adopts increasing regulations and legislation ment and fight climate change. related to water quality and climate change—farmers need an advocate to make sure such policies work for farmers, to learn more, visit www.farmland.org. the environment and the nation. 22 Americ A n FAr m l A n d Fall 2009
  • 12. by using no-till planting on his fields. He received over and phosphorus—are not meeting their stated uses, says $, over three years for the deal. Mark Kieser, an environmental engineer working with “It helped save the taxpayer’s money that they didn’t American Farmland Trust and other partners to develop have to do  percent of the plant upgrades,” Brubaker water quality trading programs in the Ohio River basin says. “And it provided revenue for us that helped us make and Minnesota’s Sauk River watershed. our margins that are so tight. I think that nutrient trad- Municipalities are going to be regulated more and ing can be another piece of the puzzle for agriculture in more, Kieser says, including not just wastewater but also the future. Farmers have to continue to search for ways urban storm water. “Permitted discharges are going to be to better use their resources. You hear about negative much lower—that’s going to be high cost and that’s where things that happen on farms, but there are so many good trading comes in, which leads to economic opportunities things that are happening all the time that farmers don’t for agriculture,” Kieser says. “Trading is not going to get rewarded for. This would be a way not only to reward work everywhere. It’s not going to be needed everywhere. farmers but also to provide a little food for the table of But where there’s significant cost for plants to make im- struggling farm families.” provements, and significant environmental benefits to be Don McNutt of the Lancaster County conservation had, those are the areas you’ll see trading.” district helped to facilitate Brubaker’s trade and worked Smith agrees regulation will be the driving force last year with three other Pennsylvania farmers trying to behind ecosystem trading markets. “There’s got to be generate credits. Although the credits were certified by something that makes environmental damage costly and the DEP, he couldn’t find a buyer. “With trading it’s not therefore makes environmental benefits valuable,” she simple,” McNutt says. “Right now, industries are having says. “Right now they’re free to everybody.” a hard time getting comfortable with trading because a farmer cannot guarantee they’ll be around in  years. Trading feels risky, so it’s got to be a better deal than plant carbon TradinG upgrades—brick and mortar. What would help to move Regulatory action will also be the driving force behind the the trading program forward is more buyers, and those development of carbon trading markets that pay farmers buyers need to have a comfort level in those credits.” to help offset greenhouse gases, Smith says. “It will be In some water quality trading markets, an aggregator a whole new ball game in  years. We’re going to have or broker pools the nutrient credits and keeps some in some regulation of carbon and a market will rise. We’ll go reserve, insuring they are available. “Farmers have to through a lot of pain to get it working. But once it works have some way to transact with buyers of environmental with carbon, we’ll have a model for how it can work on a services. That’s not always easy. Right now there isn’t an national or global level.” institution set up to do that,” says Kitty Smith of the U.S. Mike Walsh, director of research at the Chicago Department of Agriculture’s Environmental Research Climate Exchange, the first voluntary program for the Service. “Another barrier is verification of service—the trading of greenhouse gases in the United States, agrees buyer wants to have evidence that the seller has done what that regulation is coming. “There’s going to be organized they said they did. The larger the market becomes, the regulatory action in the United States—whether through more necessary it is to have rules and scientific evidence. legislation or the EPA,” he says. “Exactly how we’ll move Land tenure is a really important issue. Contracts have to forward is hard to predict.” be multi-year, but what happens if you sell the farm?” His program pays farmers for generating carbon McNutt and others are looking to  when tighter credits on their land—mostly through continuous restrictions on water quality may come into play. “Right conservation tillage practices that sequester carbon in now there’s a whole lot of talk about the potential for hav- the soil. Other farmers are receiving payments for rota- ing considerably more regulation to clean up the bay,” says tional grazing practices that allow grasses to recover and Baird. “One of the conclusions is we have to reduce nitro- grow, holding carbon in the soil. A smaller number are gen in the water by  percent. That’s a huge amount of generating credits for planting buffer strips and trees or reduction from all the contributors—not only farmers but for capturing methane on dairy farms. The credits are also suburban and urban sources. But there is a window of then bundled and sold to companies who sign contracts opportunity. If we can take the things we’re doing and re- agreeing to reduce their greenhouse gas emissions. ally scale them up, then we could lessen the blow of these The Chicago Climate Exchange currently has 6 mil- regulations. The BMP Challenge is one slice of that.” lion acres of productive land enrolled. “All the best viable Under the Clean Water Act, many waters around the solutions are going to have to be employed,” to address country—impaired by over-enrichment from nitrogen climate change, Walsh says. “There is an appreciation Fall 2009  A m e r i c A n FArml And 23
  • 13. that these agricultural practices are win/win. They groups, my message is get up to speed, get involved, do are good for protecting agriculture from the effects of some investigation.” global warming, good for soaking up carbon, good for “Whether there’s government regulation or not, we’re soil quality and water quality. They’re good for the U.S. going to see the downstream of the food chain demanding agricultural economy and good for the landscape. We see better resource management—there will be labeling for scenarios where in a relatively short period of time, green- consumers and packaging,” says Carole Brookins. “The house gas mitigation services could grow to have a value Walmarts of the world are going to be saying to suppli- of  percent of net farm income. We could potentially ers—you’re going to have to reduce your carbon footprint see $ billion in income activity for the farm sector as a and your water footprint. In part it will be market and result. This can help keep farmland in farms. As our CEO consumer driven and in part driven by regulation.” often says, ‘There are above-ground crops, and there’s a Despite the many transitions taking place in agri- below-ground crop: carbon.’” culture, Brookins offers a reminder that agriculture has always adapted to meet the challenges of the times. “Farmers have always been practicing sustainable agricul- The cominG TransiTion ture,” she says. “Farmers have always wanted to maintain Going forward, Varel Bailey believes farmers need to get their farms in ways to pass them down to their children. more engaged in the discussion about carbon and water My takeaway is that this isn’t a time to be afraid. It’s a quality, in advance of coming regulation. “Farmers need time to be creative and innovative and look at policies that to start now in learning about carbon and water trading are going to benefit agriculture to optimize this transition markets and how they can take advantage of them,” says we’re going through—this new industrial age. We have an Bailey. “When I have the opportunity to speak to farm amazing capacity for innovation.” Ap phOTO/READING EAGLE, TIM LEEDy Eric Rosenbaum on his 150-acre family farm in Birdsboro, pa. Rosenbaum receives money through a program run by the Chicago Climate Exchange, which  pays farmers for practices that remove carbon dioxide from the air.  24 Americ A n FAr m l A n d Fall 2009