Sustainability Research Report 2019

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1 Sustainability Research Report 2019

2 Executive Summary One year ago, Farm Journal publicly launched the Trust In Food platform. This effort represented a watershed moment in the history of our 142-year-old organization. We stepped forward to dedicate a significant portion of our business resources to work with leaders such as you to bolster consumer trust in food. We recognize that an essential way to build that trust is to help scale voluntary adoption of conservation agriculture practices that benefit farmers bottom lines, improve water quality and restore soil health. Mitch Rouda, President Trust In Food TM The insights you see on these pages Trust In Food s second annual Sustainability Research Report, modeled after the inaugural 2018 report we conducted in partnership with Field to Market is intended to serve as a baseline. It measures the perceptions and behaviors of farmers, ranchers and growers about conservation agriculture practices, sustainable food systems and the tools and resources that will allow agricultural producers to measure today s successes and tomorrow s progress. Data points from this research suggest five important takeaways for all stakeholders along the value chain to bear in mind as they take their work into the field this year and beyond: The majority of farmers are unfamiliar with supply chain sustainability metrics. Farmers recognize consumer trends create pressure but remain autonomous. Financial benefits are the most important factor for farmers making on-farm sustainability decisions. Few farmers know their carbon footprint, though they are farther ahead on other sustainability practices. Farmers say their definition of sustainability varies from consumers definition. Some of these findings come as no surprise. Others present challenges for us to consider with fresh eyes. Whatever perspective you bring to these data points, it is our hope that you use them as a foundation for collaboration with the spirit of partnership, understanding that we can learn from diverse points of view. Think broadly and deeply about these subjects and about ways we can all help each other build trust for our food system through the valuable and unique roles we each play. MITCH ROUDA 2

3 Executive Summary Each year, Farm Journal surveys a broad range of farmers growing or raising row crops, specialty crops, cattle, dairy and hogs to provide key insights into sustainability and conservation agriculture trends across America s farmland. This year, the survey included 950 respondents (almost double last year s) with a margin of error of +/- 3.2%. The purpose of this research is 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 80% 70% 60% 72 % 67 % 59 % 57 % 50% 40% 30% 20% 10% 0% 6 % 12 % 2 % 13 % Average Acreage: CORN SOYBEANS WHEAT COTTON PRODUCE* Average DAIRY HOGS CATTLE ,417 Head: , *30% of acreage is organic Understanding farmer s perceptions of conservation and sustainability, as well as their on-farm practices, plays a critical role in informing efforts to scale conservation-minded behaviors. Likewise, this insight is critically important for forecasting agricultural and agri-economic trends, which will shape our food system in the years to come. What follows are the results of our survey along with five key takeaway macro-level trends. Trust In Food will build on this baseline each year, tracking behavioral and perception shifts over time to inform the industry. 3

4 What Food Producers Think About Sustainability Nearly 81% of respondents consider themselves farmers, 32% ranchers, 19% growers and 12% food producers. Respondents could select more than one option. What is your role on your farm or ranch? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% FARMER 81 % RANCHER 32 % GROWER FOOD PRODUCER NOT INVOLVED 1 % 5 % 12 % 19 % OTHER 4

5 Takeaway No. 1: The Majority Of Farmers Are Unfamiliar With Supply Chain Sustainability Metrics 5

6 Farmers clearly believe consumers want sustainable food, but they re divided on how swiftly those beliefs will require them to make changes in their on-farm sustainability practices. Almost half (44%) of farmers don t know when consumer pressure for sustainable food will affect their operation, yet an increasing number (22%, up from 17% in last year s survey) believe this will happen in the next five years. How soon will your operation be affected by consumer pressure for sustainable food? 44 % I HAVE NO IDEA 14 % 22 % 2 WITHIN THE WITHIN 2 TO WITHIN 5 TO NEXT YEAR 5 YEARS 10 YEARS Three fourths of farmers (75%) are not using any tools to measure their sustainability performance. Are you currently using any tools to measure sustainability performance or recommend best practices? YES NO 25 % 75 % Close to three quarters (72%) of farmers have not seen specific sustainability goals from a food or beverage company. Nor have they been asked to respond to supply chain surveys or questionnaires about sustainability from the stakeholders in their supply chain. Have you seen specific sustainability goals from a food company? 12 % YES 16 % NOT SURE 72 % NO 6

7 Takeaway No. 2: Farmers Recognize Consumer Trends Create Pressure But Remain Autonomous 7

8 Do consumer sentiments or demands influence farming practices? YES NO 67 % 33 % More than half (61%, up from 55% in last year s survey) say they think consumer interest in sustainable food will be a factor in the near future, and I will make it a priority soon. Meanwhile, 21% (down from 23% in last year s survey) say they think it will be a factor but will leave it to the next generation while only 18% (down from 22% in last year s survey) say it won t be a factor. Which of the following statements best describes your feelings about consumer interest in sustainable food? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% I THINK IT WILL BE A FACTOR. 18 % I THINK IT WILL BE A FACTOR, and I will make it a priority soon. 61 % I THINK IT WILL BE A FACTOR, but I will leave it to the next generation. 21 % 8

9 A decreasing number (36% this year, down from 41% last year) of farmers think most farmers already are operating sustainability, while an increasing number (41%, up from 38% last year) say farmers must operate sustainably and need to make progress in certain areas. Do you believe sustainable farming practices are essential to the future of agriculture? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% YES, but I believe most farmers already operate sustainably. 36 % YES, I believe farmers must operate sustainably, and we need to make more progress in certain areas. 41 % YES, I believe farmers must operate sustainably, and we need to make significantly more progress. 18 % NO, I think it s a bunch of media hype that will never amount to anything. 5 % The majority (62%) 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. Just over one in four farmers (28%) said it should be a strictly business transaction, pointing to the importance of farm autonomy and economic viability in sustainability decisions. Which of the following statements best describes the relationship food manufacturers and retailers should have with farm operations? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% They should buy products from farm operations with no recommendations on sustainable farming practices. It should be strictly a business transaction. 28 % They should buy products from farm operations and engage farmers on achieving sustainability outcomes, but allow for freedom to choose which sustainable farming practices work best to deliver that outcome on a farmer s operation. 62 % 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. 1 9

10 Takeaway No. 3: Financial Benefits Are The Most Important Factor For Farmers Making On-Farm Sustainability Decisions 10

11 More than half of farmers say they re not sure if they would use tools to adopt sustainable farming practices presented by food manufacturer or retailers. If a food manufacturer or retailer provided you with tools to adopt sustainable farming practices, would you use them? 41 % YES 4 % NO 55 % 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. This indicates farmers willingness to undertake on-farm changes if it makes economic sense for them. 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 COST-SHARING FOR IMPLEMENTING SUSTAINABILITY PRACTICES FREE TECHNICAL ASSISTANCE 4 35 % 26 % 24 % 23 % 13 % 11 % 8 % 2 % 1 % 1 % 1 % 15 % 5 % 4 % 3 % PREFERRED MARKET ACCESS CONSUMER ADVERTISING ON FARMER S SUSTAINABILITY EFFORTS 37 % 21 % 24 % 12 % 11 3 % 1 % 6 % % 14 % 20% 3 % 2 % 2 % 4 % 48 % INDUSTRY RECOGNITION FOR SUSTAINABILITY PERFORMANCE %

12 Takeaway No. 4: Few Farmers Know Their Carbon Footprint, Though They Are Farther Ahead On Other Sustainability Practices 12

13 The research found only 4% of farmers know their carbon footprint. Of those who know their footprint, 59% say it is decreasing, 28% say it is staying the same and 13% say it is increasing. Have you calculated the carbon footprint for your farming/ranching operation? 4 % YES 96 % NO How is your carbon footprint changing? 13 % 59 % 28 % INCREASING DECREASING STAYING THE SAME How much of your acreage is managed using: CONSERVATION TILLAGE FIELD TILING TERRACING 1 % 1 % 2 % 11 % 34 % 54 % 8 % 15 % 18 % 8 % 14 % 8 % 15 % 12 % 6 % 15 % 13 % 5 % 41 % 11 % 7 % 13

14 What percentage of your on-farm acreage is devoted to: WETLANDS WILDLIFE HABITAT PRESERVATION 2 % 1 % 58 % 38 % 39 % 54 % 4 % 1 % 1 % 1 % CULTIVATED CROPLAND GRASSLAND/PASTURE FOREST 2 % 1 28 % 46 % 3 % 47 % 44 % 8 % 1 7 % 2 7 % 1 % 53 % 7 % 6 % 1 % EDGE OF FIELD RIPARIAN BUFFERS WATER WAYS (Lakes, Rivers, Streams, Ponds) 3 % 39 % 1 % 24 % 55 % 73 % 2 % 2 % 1 % 14

15 On what percentage of your on-farm planted acreage do you: USE INTEGRATED PEST MANAGEMENT USE GENETICALLY ENGINEERED SEED USE MANURE AS FERTILIZER 4 % 2 % 3 19 % 43 % 12 % 4 % 25 % 5 % 5 % 11 % 8 % 11 % 7 % 13 % 19 % 6 % 28 % 40% 8 % RAISE USDA CERTIFIED ORGANIC CROPS USE COVER CROPS 2 % 94 % 44 % 2 % 27 % 1 % 11 % 8 % 4 % 1 % 5 % USE SOIL SAMPLING (Grid or Zone) 1 % 1 9 % 5 % 9 % 18 % 48 % 15

16 Takeaway No. 5: Farmers Say Their Definition Of Sustainability Varies From Consumers Definition 16

17 Which of the following criteria do you associate with sustainable agriculture? Of the following sustainability criteria, which five do you think consumers care about most? TOP 5 TOP 5 CROP ROTATION 7 ORGANIC FARMING 37 % MANURE AS FERTILIZER 64 % WILDLIFE HABITAT PRESERVATION 37 % WILDLIFE HABITAT PRESERVATION 63 % WATER QUALITY TESTING 36 % CONSERVATION TILLAGE 62 % SEED TRAITS 22 % ROTATIONAL GRAZING 56 % WIND ENERGY 19 % ON-FARM WETLANDS 22 % ON-FARM WETLANDS 7 % SOLAR ENERGY 28 % SOLAR ENERGY 18 % FIELD TILING 36 % CONSERVATION TILLAGE 13 % INTEGRATED PEST MANAGEMENT 43 % FIELD TILING 3 % ORGANIC FARMING 12 % ROTATIONAL GRAZING 5 % WIND ENERGY 23 % INTEGRATED PEST MANAGEMENT 7 % LOW-VOLUME IRRIGATION 19 % LOW-VOLUME IRRIGATION 7 % SEED TRAITS 39 % BIOFUELS 14 % BIOFUELS 32 % WASTE MANAGEMENT 8 % WASTE MANAGEMENT 2 MANURE AS FERTILIZER 14 % TERRACING 4 TERRACING 1 % WATER QUALITY TESTING 32 % COVER CROPS 11 % COVER CROPS 22 % ADVANCED NUTRIENT MANAGEMENT 12 % ADVANCED NUTRIENT MANAGEMENT 36 % CROP ROTATION 5 % BUFFER STRIPS 43 % BUFFER STRIPS 1 17

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