Ag Will be Granted $11 Million to be Part of the Climate "Solution"

John Kerry, Special Presidential Envoy for Climate, highlighted the need to address ag sector emissions in the fight against climate change during his keynote address at USDA’s recent AIM for Climate Summit. He noted that ag production accounts for 33% of global greenhouse gas emissions, making it essential to focus on reducing these emissions in the pursuit of a net-zero future.

“We can’t get to net zero, we don’t get this job done, unless ag is front and center as part of the solution,” Kerry said.

Details

Ag generates 10% to 12% of greenhouse gas emissions globally, according to the Intergovernmental Panel on Climate Change. The food system as a whole —including packaging, transportation, and waste management — generates a third of global emissions, according to a 2021 study published in the academic journal Nature Food.

As the global population continues to grow, emissions from food systems are projected to cause an additional half a degree of warming by mid-century. Kerry stressed that lives depend on developing the necessary tools to lower ag emissions, urging for innovation within the sector. The global food system, which encompasses land-use change, agricultural production, packaging, and waste management, generates approximately 18 billion tons of carbon dioxide annually, or 34% of total worldwide emissions.

A Farmer's Reflection on Climate

Fox Business News recently interviewed Nicole Ort Moke of Ort Farms. She said “agriculture is very green and as farmers we are the most invested in keeping the land sustainable, keeping it viable for future generations. And everything we do, environmentally, that's always at the top of our mind.”

Nicole was asked to comment about making planters and other farm equipment electric vehicles.

“Going electric with the tractors, the concerns that I have are, are they able to be efficient enough with keeping up the battery life and having enough horsepower for us to be able to feed the nation in an economic, affordable way?”

The outlet then talked with Bjørn Lomborg, a Danish author and the president of the think tank Copenhagen Consensus Center. He is the former director of the Danish government's Environmental Assessment Institute in Copenhagen. He became internationally known for his best-selling and controversial book The Skeptical Environmentalist.

Lomborg was asked if the U.S needs to restrict farming on a vast scale. Lomborg’s response:

“What John Kerry is telling us is that a third of all emissions come from farming, most of that is in developing countries and remember, what is it that is also mostly a core part of the world? It's a lot of people starving. There's something fundamentally wrong about that. Look, there's maybe 750 million people who are starving, but do we need to make it harder to do ag? No. The solution is focused on innovation. First, what matters a lot more is to get cheaper and more food so you can feed your kids. That's not what John Kerry is pushing for," he says. "Secondly, if we innovate to have better ag that produces more at lower cost, it also helps the environment because it reduces climate emissions because you don't need to cut down a lot of forests.”

Upshot

Lomborg says Kerry’s solution to the climate problem is not going to work and should be withdrawn. He says the U.S. and other countries should be spending the money that we're spending on innovation and technology.  

“Look at all the other problems that are also facing the world. All these problems have smart solutions as we just talked about for ag. This is about getting more innovation, especially for the world's poorest for cassava and sorghum and all these other grains… all these other ag products that don't get a lot of funding because they're not growing in rich countries. Those could be better, cheaper, more effectively produced. More production, lower price and lower emissions.”

The pros and cons of focusing on U.S. ag's climate change:

Pros:

• Reduction of greenhouse gas emissions: Agriculture is a significant contributor to global greenhouse gas emissions, particularly methane and nitrous oxide. By focusing on sustainable farming practices, emissions can be reduced.
• Carbon sequestration: Certain agricultural practices, such as cover cropping and no-till farming, can help sequester carbon in the soil, reducing atmospheric CO2 levels.
• Improved water management: Sustainable agriculture can help manage water resources more efficiently, reducing stress on freshwater sources and mitigating the effects of droughts and floods.
• Biodiversity protection: Promoting agricultural practices that protect habitats and ecosystems can contribute to biodiversity conservation and support ecosystem services that are crucial for human well-being.
• Food security: Climate-resilient agricultural practices can help ensure a stable food supply in the face of climate change-induced threats like extreme weather events, pests, and diseases.
• Economic benefits: Investing in sustainable agriculture can create jobs and stimulate economic growth in rural areas, fostering the development of green technologies and practices.

 
Cons:

• Short-term economic costs: Transitioning to sustainable agricultural practices may require significant investments in new technologies, infrastructure, and training, which could be costly in the short term.
• Resistance to change: Farmers and other stakeholders might be resistant to change due to a lack of understanding, financial incentives, or concerns about potential negative impacts on their livelihoods.
• Trade-offs and unintended consequences: Focusing on agriculture alone may not be sufficient to address climate change, and some solutions might lead to trade-offs with other environmental, social, or economic objectives.
• Political challenges: Policy changes necessary to support sustainable agriculture may face opposition from powerful interest groups, such as the agribusiness sector or the fossil fuel industry, making it difficult to implement effective policies.
• Global coordination: While focusing on U.S. agriculture can contribute to mitigating climate change, it's essential to recognize that climate change is a global problem that requires international cooperation and coordination to address effectively.

While people like Kerry say this focus can yield significant environmental, social, and economic benefits, others note there are challenges to overcome, such as the short-term costs, resistance to change, and the need for global coordination.

The news comes as USDA announces $11 billion for rural clean energy transition. The Biden administration plans to make nearly $11 billion in grants and loan opportunities available to rural electric providers to help them transition to clean energy.

This represents the largest investment in rural electricity since the Rural Electrification Act of 1936. The funds aim to support cleaner energy, create new jobs, reduce energy costs, and combat climate change.

Clean energy grant details

The Empowering Rural America (New ERA) program will make $9.7 billion available to eligible rural electric cooperatives for deploying renewable energy systems, zero-emission systems, and carbon capture systems.

The Powering Affordable Clean Energy (PACE) program will provide $1 billion in partially forgivable loans to renewable-energy developers and electric service providers for financing large-scale solar, wind, geothermal, biomass, hydropower projects, and energy storage systems.

To apply for the New ERA program, eligible entities must submit a Letter of Interest between July 31 and August 31.

For the PACE program, USDA will accept Letters of Interest starting on June 30 until Sept.29. Loans through the PACE program may be forgiven by 40% of the loan amount, and up to 60% for applicants in Puerto Rico, the Federated States of Micronesia, the Republic of the Marshall Islands, the Republic of Palau, and Tribal communities.

Background on energy grants

Cooperatives are tax-exempt and can't take advantage of renewable energy tax credits that large power companies can get. The loans and grants are meant to fill that gap and speed rural America’s transition to clean energy, instead of coal and oil-burning power plants.

The funds can be used to deploy renewable energy systems, zero emission systems and carbon capture systems.