Breakthrough agricultural loan rewards farmers for environmental stewardship
In 2022, global farmer-to-farmer network and ag tech company Farmers Business Network® launched a new incentive program for farm operating loans. The Regenerative Agriculture Financing program includes a 0.5% interest rate rebate for farmers who achieve climate and water quality benchmarks established by Environmental Defense Fund. The $25 million pilot fund was expanded to $50 million in 2023. Learn more below about the program’s results below.
Key pilot year report findings
- Eighty-three percent of participating farmers who completed program requirements met environmental standards for fertilizer efficiency and soil health practices.
- Data was collected from 42,000 acres, and RAF farmers achieved average crop yields equal to or greater than national averages for corn, soybeans and wheat.
- Both farmers who are early adopters and new adopters of regenerative practices were eligible to participate.
- Farmers who secured the rebate demonstrated that they applied nitrogen at levels that minimize risk of loss to the air and water. Over the next three years, EDF and FBN will use aggregated farm-level nitrogen data to calculate nitrous oxide emissions, a potent greenhouse gas, and nitrate, a prevalent water contaminant, across the RAF portfolio.