September 15, 2022

USDA to invest nearly US$3 billion in climate-friendly farming

The US Department of Agriculture (USDA) will invest nearly US$3 billion in climate-friendly farming projects, tripling its initial envisioned funding, Reuters reported.

The investment is a part of a larger initiative by US President Joe Biden's administration to decarbonize the American economy within a few decades and position the country as a leader in the struggle against global climate change.

According to Environmental Protection Agency data, agriculture is responsible for almost 10% of the nation's greenhouse gas emissions.

The programme will provide funding for 70 initiatives that encourage farmers to reduce emissions in a variety of ways, spread across all 50 states and Puerto Rico. This would entail establishing cover crops to improve soil health and absorb carbon, enhancing manure management to reduce methane emissions, and gathering information on ethical methods of grazing bison and beef.

The Partnerships for Climate-Smart Commodities programme, which the USDA called its US$1 billion investment initiative, was first announced by the agency in February.

However, the agency turned to the Commodity Credit Corporation (CCC) for additional funding after receiving 1,050 applications that requested more than $20 billion in funding, far more than it had anticipated, US Secretary of Agriculture Tom Vilsack said. 

The CCC is a pool of funds made available by the US Treasury to help the agricultural sector.

The projects, which range in size from US$5 million to $100 million, that were announced on Wednesday will receive a total of US$2.8 billion. Vilsack said, an additional US$1.4 billion in pledges from the private sector will fund the projects.

The USDA announced that a second round of funding for additional climate-related projects will be made public later this year.

-      Reuters