A new report is calling for greater accountability in the system providing funding to farmers in underserved communities.

The research takes a dive into the Farm Credit System, examining the risks and suggesting improvements to make the system more fair and more sustainable.

Joshua Humphreys, president and senior fellow of Croatan Institute, a farmer and lead author of the report, said despite the Farm Credit System making around 45% of all agricultural loans, there is no transparency in how much of the funding goes to small, midsized or socially disadvantaged farmers.

"Minority homebuyers were deeply underserved, yet no data demographically related to race, ethnicity, or gender along the lines of other equal lending opportunity sectors are provided," Humphreys observed.

According to the report, most of the Farm Credit System loans go to very large operations, and fewer than 20% to small or beginning farmers. Humphreys argued the findings can be an opportunity for the system to address the disparities.

The report also points to the system's lack of climate-related reporting, and suggests ways to make sustainability a bigger priority in lending. For the last several decades, farmers have dealt with increased risks from rising temperatures and more frequent severe storms to wildfires.

David Beck, director of policy at Self-Help Credit Union and a contributor to the report, said that as Ag's Government Sponsored Enterprise, Farm Credit should be doing more to help farmers to transition to more eco-friendly practices.

"For instance, helping small farmers or even larger farmers switch to more regenerative ag practices that can require a lot of upfront cost," Beck suggested. "Maybe helping subsidize that switch to more sustainable ag systems."

The research touched on some governance issues as well, like board members serving expired terms. Humphreys emphasized the challenges must be addressed, as taxpayers ultimately would bail the system out in the event of a crisis.

"Agriculture is not immune from a wide array of environmental, social and governance risks and opportunities," Humphreys noted. "I think that's the key takeaway, is that we really want to encourage the Farm Credit System to end its laggard position among government-sponsored enterprises."

The report recommends conducting more climate research, implementing Green and Impact Bonds, and establishing a grant set-aside program through a congressional mandate.

Access to nutritious food can be hard to come by for underserved populations.

A Wisconsin program that relies on contributions from locally based producers serves as a go-between, with the added bonus of a smaller climate impact.

The state's Local Food Purchase Assistance Program is closing in on its second anniversary.

Under the initiative, farmers around Wisconsin are awarded grants to set aside some of their fresh produce and other items that get picked up and distributed to hunger relief sites.

The Wisconsin Farmers Union helps lead the effort, and the organization's Local Foods Organizer Forrest Humphrey said one of the benefits is helping smaller farms expand their markets.

"This guaranteed income has allowed farms to invest in their operations, and do things that they otherwise wouldn't be able to do," said Humphrey, "because we've been able to provide some stability through some unpredictable growing seasons."

And for people seeking help from hunger-fighting groups, their outcomes might improve if food insecurity becomes one less thing to worry about.

Meanwhile, agriculture and the food-production system are under pressure to reduce their carbon footprint.

Humphrey said the program allows sites to order food in bulk that doesn't have to travel from other regions or states, potentially reducing transportation emissions linked to supply chains.

Researchers say there's debate over just how effective locally grown food is in reducing emissions, when focusing on how products are delivered.

Still, Humphrey pointed out that a number of the small farms signed up for the program prioritize climate-friendly practices.

"We have producers, for example, who are providing some really, really high-quality grass-fed beef into the program," said Humphrey. "And the reason that they're able to do that is because they have a really sophisticated managed grazing setup on their farms."

The exact climate impact of the program is unclear - but officials say, so far, it has served 70 counties across Wisconsin, with nearly $3 million worth of food delivered.

Organizers are hosting several events this fall to provide technical guidance and other resources as local partners try to sustain these newer, more efficient supply chains.




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Massachusetts fishermen said they are optimistic the next Farm Bill will provide greater support to smaller, community-based fishing fleets.

The bill's framework includes provisions to increase the amount of domestic seafood purchased for federal nutrition programs and creates a special seafood liaison to the U.S. Department of Agriculture.

John Pappalardo, CEO of the Cape Cod Fishermen's Alliance, said the liaison could help local fishermen gain access to federal programs geared toward larger farming operations.

"Hopefully we can put somebody in the USDA that talks fish and talks ocean," Pappalardo explained. "Lock some of those opportunities for the smaller food producers like the fishermen on Cape Cod and in the Commonwealth."

The Farm Bill is renewed every five years and Pappalardo said fishing groups have been lobbying to raise the industry's value within the Department of Agriculture. The U.S. currently imports roughly 65% of its seafood.

The Farm Bill remains the largest source of federal funding for America's food producers and Pappalardo observed ensuring initiatives for fishermen in the bill is a bit like "herring pushing upstream, battling a political flow."

He argued it is important local fishermen and the businesses that support them have a level playing field with farmers, ranchers and loggers.

"The United States is divided into eight regions when it comes to fisheries management," Pappalardo pointed out. "We'd like to see each region have an opportunity to participate in the funding and training opportunities that are currently in the Farm Bill for farmers."

Pappalardo wants an expansion of the 2020 Young Fishermen's Development Act in the Farm Bill to ensure the next generation get the training it needs to grow the seafood industry, while preserving the traditions of independent small-boat fisheries supporting communities like on Cape Cod. He said one day perhaps the Farm Bill could even be renamed the "Food Bill."


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Progress on the new Farm Bill remains stalled as members of Congress argue over price increases for commodity crops and proposed cuts to the Supplemental Nutrition Assistance Program in the latest version of the $1.5 trillion agriculture package.

Hank Graddy, volunteer on the food and agriculture team for the Kentucky chapter of the Sierra Club, said even if the bill's future remains uncertain, now is the time for farmers to take advantage of additional funding in the Conservation Title. He noted around $20 billion in conservation money through the Inflation Reduction Act are available to be used now, even if farmers' have not had luck in the past applying for programs.

"The Conservation Title is the part of the Farm Bill that helps prevent soil erosion, attempts to keep animal manure out of our rivers and streams," Graddy outlined. "It attempts to reduce water pollution, it attempts to maintain soil."

The conservation programs provide financial incentives to farmers who plant cover crops, diversify crops, reduce tillage and plant grasslands. They are strategies to help protect natural resources from industrial farming, like Concentrated Animal Feeding Operations. Such large operations leak substantial amounts of livestock waste into soil, waterways and drinking water, including hormones, nitrates and pathogens like E. coli.

Some House lawmakers want to modify the Conservation Title to incorporate precision agriculture technologies into water conservation and irrigation practices. Graddy believes it would weaken the original goals of the conservation programs, which have greatly benefited Kentucky farmers.

"We need more money in these programs because they help farmers become better farmers," Graddy explained. "And reduce agricultural impact on the environment, and on people downstream."

According to the U.S. Senate Committee on Agriculture, Nutrition and Forestry, to date more than 500,000 farmers have participated in conservation programs, with more seeking to participate than there is funding available.


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