Sustainability Research Report

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1 Sustainability Research Report JANUARY 2018

2 Why Farmers are Key to Sustainability Rod Snyder, President of Field to Market For more than a decade, Field to Market has operated on the principle farmers must have a central voice in how the supply chain defines, measures and advances the sustainability of U.S. agriculture. If we hope to improve the environmental impacts of agricultural systems, we must be willing to listen to producers who are on the front lines of managing natural resources while ensuring the productivity and profitability of their operations. Field to Market is pleased to partner with Farm Journal Media to publish research about how U.S. farmers view the topic of sustainability. These learnings can help the industry focus on the kinds of educational opportunities and incentives that will best support growers on their journey of continuous improvement. The entire agriculture sector is grappling with the challenge of how we feed, clothe and fuel 9.6 billion people by the year 2050 while conserving finite resources such as land and water. American farmers are on the leading edge of the innovations that will help us reach this critical goal, and Field to Market will continue to provide a precompetitive, science-based framework to inform supply chain sustainability efforts for many years to come. ROD SNYDER 2

3 Executive Summary Farm Journal Media, in partnership with Field to Market, researched a broad range of farmers growing or raising row crops, specialty crops, cattle, dairy and hogs. The research, conducted in spring 2017, included near 550 completed responses with a margin of error of +/- 4.3%. The purpose was to better understand: How farmers, ranchers, growers and other food producers define sustainability. The degree to which farmers have adapted on-farm sustainability practices. Farmers expectations of food companies and food retailers related to sustainability. Needs and interests surrounding sustainability practices, information and education. Survey Snapshot: Farmers, Growers and Ranchers Speak Out % 67% 59% 57% % 12% 2% 13% Average Acreage: CORN SOYBEANS WHEAT COTTON PRODUCE* Average DAIRY HOGS CATTLE ,904 Head: 260 8, *22% of acreage is organic How farmers feel about sustainability and the practices they are using on-farm vary widely. Broadly, farmers recognize sustainability is important and more progress is needed on-farm. They are receptive to sustainability recommendations from food retailers and manufacturers but will push back against recommendations they do not believe will support their operations from an agronomic or financial perspective. Open-ended comments ranged from very skeptical of the intentions of the research and the concept of sustainability to very bullish about the need for greater on-farm focus on protecting soil, air and water. 3

4 What Food Producers Think About Sustainability The following illustrates some of the key findings about how farmers view the sustainability landscape and their place in it. Nearly 85% of respondents consider themselves farmers, 22% ranchers, 2 growers and 12% as food producers. Respondents could select more than one option. For the purposes of this report, the word farmers refers to every research respondent, regardless of how they self-identified. What is your role on your farm or ranch? FARMER 83% RANCHER GROWER FOOD PRODUCER 12% 22% 2 NOT INVOLVED OTHER 3% 7% 4

5 Takeaway No. 1: Few Are Using Sustainability Tools, And A Majority Are Unaware Of Company Goals 5

6 Farmers clearly believe consumers want sustainable food, but they re unsure how swiftly those beliefs will require them to make changes in on-farm sustainability practices. More than half (52%) of farmers don t know when consumer pressure for sustainable food will affect their operation. Twenty percent say it will affect operations within the next five to 10 years, 17% within two to five years and nearly 1 within the next year. How soon will your operation be affected by consumer pressure for sustainable food? 52% I HAVE NO IDEA 1 WITHIN THE NEXT YEAR 17% WITHIN 2 TO 5 YEARS 2 WITHIN 5 TO 10 YEARS Nearly three in four farmers (7) are not using any tools to measure sustainability performance. Are you currently using any tools to measure sustainability performance or recommend best practices? YES NO 29% 7 Close to two-thirds (66%) of farmers have not seen specific sustainability goals from a food company, and nearly three in four (73%) have not been asked to respond to supply chain surveys or questionnaires about sustainability. Have you seen specific sustainability goals from a food company? 16% YES 18% NOT SURE 66% NO 6

7 Takeaway No. 2: Farmers Recognize Consumer Needs Will Affect Operations But Seek Independence 7

8 Nearly three in four (74%) farmers say consumer sentiments or demands influence farming practices. Do consumer sentiments or demands influence farming practices? YES NO 74% 26% More than half (55%) say they think consumer interest in sustainable food will be a factor in the near future, and I will make it a priority soon. Twenty-three percent say they think it will be a factor but will leave it to the next generation, while 22% say they don t think it will be a factor. Which of the following statements best describes your feelings about consumer interest in sustainable food? I THINK IT WILL BE A FACTOR. 22% I THINK IT WILL BE A FACTOR, and I will make it a priority soon. 55% I THINK IT WILL BE A FACTOR, but I will leave it to the next generation. 23% 8

9 Only 4 of farmers think most farmers already are operating sustainability. Thirty-eight percent say farmers must operate sustainably and need to make progress in certain areas, while close to one in five (17%) said significantly more progress is needed. Do you believe sustainable farming practices are essential to the future of agriculture? YES, but I believe most farmers already operate sustainably. 4 YES, I believe farmers must operate sustainably, and we need to make more progress in certain areas. 38% YES, I believe farmers must operate sustainably, and we need to make significantly more progress. 17% NO, I think it s a bunch of media hype that will never amount to anything. 4% Nearly two-thirds (63%) of farmers think food manufacturers and retailers should engage farmers on achieving sustainability outcomes if farmers can choose which practices work best to deliver a particular outcome on-farm. The exact same percentage said if a food company asks them to change farming practices to continue doing business, they will make the changes the farmer thinks are necessary but push back on other changes. Close to one-third (29%) said it should be a strictly business transaction, while 7% said companies and retailers should require farmers to adopt sustainable practices. Which of the following statements best describes the relationship food manufacturers and retailers should have with farm operations? They should buy products from farm operations with no recommendations on sustainable farming practices. It should be strictly a business transaction. 29% They should buy products from farm operations and engage farmers on achieving share sustainability outcomes, but allow for freedom to choose which sustainable farming practices work best to deliver that outcome on a farmer s operation. 64% They should buy products from farm operations and also require operations to adopt sustainable practices. They can help operations achieve industry sustainability standards that will encourage future consumer purchases. 7% 9

10 Takeaway No. 3: Farmers Need Economic Incentives To Scale Adoption Of Sustainability Practices 10

11 Fifty-four percent of farmers say they re not sure if they would use tools to adopt sustainable farming practices presented by food manufacturer or retailer; 42% said they would use those tools. If a food manufacturer or retailer provided you with tools to adopt sustainable farming practices, would you use them? 42% YES 4% NO 54% NOT SURE When asked about incentives that would be required for you to make changes to your management practices to deliver sustainability outcomes, on a scale of 1 (most valuable) to 6 (least valuable), farmers overwhelmingly chose price premium an average rating of Next on the list were cost-sharing for implementing sustainability practices (4.16), preferred market access (3.54) and free technical assistance (3.32). Please rank what incentives a food manufacturer or food retailer would need to offer for you to make changes to your management practices to deliver sustainability outcomes. 1 2 Most valuable Least valuable 88% PRICE PREMIUM FREE TECHNICAL ASSISTANCE COST-SHARING FOR IMPLEMENTING SUSTAINABILITY PRACTICES 6% 3% 23% 25% 23% 12% 16% 5% 42% 32% 1 6% 4% % PREFERRED MARKET ACCESS 36% 27% 2 9% 6% CONSUMER ADVERTISING ON FARMER S SUSTAINABILITY EFFORTS 5 19% 16% 2% 4% 8% 5% 5% INDUSTRY RECOGNITION FOR SUSTAINABILITY PERFORMANCE 58% 9% 22%

12 Takeaway No. 4: Few Farmers Know Their Carbon Footprint, Though They Are Farther Ahead On Other Sustainability Practices Including Conservation Tillage And Cover Crops 12

13 The research found only 7% of farmers know their carbon footprint. On average, those who know their footprint say it averages tons of CO 2 emissions per year. Of those who know their footprint, 44% say it is decreasing, 33% say it is staying the same and 22% say it is increasing. Have you calculated the carbon footprint for your farming/ranching operation? 7% YES 93% NO How is your carbon footprint changing? 2 46% 33% INCREASING DECREASING STAYING THE SAME Forty-one percent of all respondents use conservation tillage on 10 of acreage. How much of your acreage is managed using: CONSERVATION TILLAGE FIELD TILING TERRACING 10 2% 14% 35% 54% 8% 19% 18% 9% 1 8% 13% 12% 6% 14% 1 5% % 10 7% 13

14 Forty-six percent of all respondents have wetlands on up to 24% of acreage. What percentage of your on-farm acreage is devoted to: WETLANDS WILDLIFE HABITAT PRESERVATION 2% 2% 5 38% 46% 54% 10 3% 10 CULTIVATED CROPLAND GRASSLAND/PASTURE FOREST 2% 1 23% 46% 7% 43% 45% % 6% 17% 1 48% 8% 6% 10 3% 10 EDGE OF FIELD RIPARIAN BUFFERS WATER WAYS (Lakes, Rivers, Streams, Ponds) 3% 4 25% 57% 72% 2%

15 Twenty-seven percent of all respondents use cover crops on up to 24% of acreage. On what percentage of your on-farm planted acreage do you: USE INTEGRATED PEST MANAGEMENT USE GENETICALLY ENGINEERED SEED USE MANURE AS FERTILIZER 3% 28% 23% 44% 15% 8% 27% 7% 7% 7% 9% 1 8% 8% 17% 6% % 10 7% RAISE USDA CERTIFIED ORGANIC CROPS USE COVER CROPS 3% 89% 38% 3% 28% 12% 9% 5% 10 2% 10 7% USE SOIL SAMPLING (Grid or Zone) 14% 1 8% 1 12% 10 46% 15

16 Takeaway No. 5: Farmers Know Consumers Want Sustainability But Disagree On Pace Of Change And Also View Their Definition Of Sustainability As Divergent From That Of Consumers 16

17 Which of the following practices do you associate with sustainable agriculture? Which of the following practices do you think consumers associate with sustainable agriculture? ON-FARM WETLANDS 28% ON-FARM WETLANDS 14% SOLAR ENERGY 34% SOLAR ENERGY 36% CONSERVATION TILLAGE 75% CONSERVATION TILLAGE 26% FIELD TILING 48% FIELD TILING 5% ROTATIONAL GRAZING 53% ROTATIONAL GRAZING 7% INTEGRATED PEST MANAGEMENT & BUFFER STRIPS 56% INTEGRATED PEST MANAGEMENT & BUFFER STRIPS 2 ORGANIC FARMING 17% ORGANIC FARMING 62% WIND ENERGY 32% WIND ENERGY 32% LOW-VOLUME IRRIGATION 27% LOW-VOLUME IRRIGATION 1 SEED TRAITS 53% SEED TRAITS 36% BIOFUELS 44% BIOFUELS 26% WASTE MANAGEMENT 23% WASTE MANAGEMENT 14% MANURE AS FERTILIZER 6 MANURE AS FERTILIZER 15% WILDLIFE HABITAT PRESERVATION 47% WILDLIFE HABITAT PRESERVATION 58% TERRACING 44% TERRACING 4% WATER QUALITY TESTING 29% WATER QUALITY TESTING 5 COVER CROPS 7 COVER CROPS 2 ADVANCED NUTRIENT MANAGEMENT 44% ADVANCED NUTRIENT MANAGEMENT 22% CROP ROTATION 8 CROP ROTATION 12% BUFFER STRIPS 55% BUFFER STRIPS 19% 17

18 Notes 18

19 Notes 19

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