Vilsack Pushes Climate Smart Farming, Biofuels at Agricultural Outlook Forum

U.S. Agriculture Secretary Tom Vilsack. Toshifumi Kitamura/AFP/Getty Images

U.S. Secretary of Agriculture Tom Vilsack highlighted climate-smart farming initiatives and expansion of the U.S. biofuels industry during a symposium on Feb. 23 as means for American farmers to “diversify” their incomes and boost profits.

The Department of Agriculture (USDA) is investing more than $3 billion into the projects mentioned by Vilsack. The agency claims that the initiatives will offer “direct, meaningful benefits” to farmers, particularly those in small and underserved communities.

“There’s a market value to that. So we have 141 projects that we’re funding and providing resources to de-risk our farmers from embracing climate-smart practices,” Vilsack said during the Agricultural Outlook Forum 2023 event. “And then, linking them to markets that value those climate-smart practices and rewarding them.

Direct Benefits to Farmers

The USDA intends to spend $2.8 billion on the first 70 selected projects under the Partnerships for Climate-Smart Commodities program. Another $325 million is slotted for 71 additional projects.

Overall, the goal is to create end-to-end supply chain partnerships and specific market opportunities for climate-smart commodities.

During the conference, Vilsack touted the ambitious spending package as a means to create “additional profit opportunities” for farms of every size and scale, not just the proverbial big dogs.

“So instead of two or three ways to generate profit and income on a farm, we have five, or six, or seven different ways,” he said.

Much of the hard sell to adopt more “climate-friendly” methods of production is being overcome with monetary incentives.

No-Till Farming

The USDA is putting up $19.5 billion under the Inflation Reduction Act to encourage the widespread adoption of land conservation practices and climate-smart production. Two of the techniques are the use of cover crops and no-till farming.

Then, there’s the country’s growing biofuels industry, which Vilsack said is another profit opportunity for American producers.

“We’re now investing in a bio-based economy that will give us the ability to create from agricultural waste, chemicals, fabrics, fibers,” he said.

He further described the value of the diversity of commodities such as soybeans, which could be turned into a product that “will repair roads more easily and less expensively.”

Using the rubber industry as an example of the United States’ dependence on foreign producers for a critical commodity, Vilsack said the U.S. biofuel industry could create products to fill domestic production gaps for essential imports.

New Market Opportunities

The timing is relevant, since the global biofuel market is predicted to surpass $200 billion by 2030. Last year, the market topped $116 billion, with the United States commanding the lion’s share.

Legislators are also buzzing about the expansion of the United States’ biofuel initiatives.

Sen. Joni Ernst (R-Iowa) expressed support for the biofuels initiative during a Feb. 1 congressional hearing. Ernst noted that while Iowa might be the second-largest agricultural producer state, it remains the leader in U.S. biofuel production.

Ernst said there’s also a need to widen the international reach of U.S. biofuels, noting that India is a promising new market opportunity.

During the Feb. 23 conference, Vilsack noted that the United States could produce renewable energy and fuel, to return the nation to energy independence. He also said that, in turn, can lower energy costs for farmers.

“Better soil health, purer water quality, and a stronger sense of community and connection—that’s the future,” he said. “That’s what we’re investing in now.”