Farmers Achieve Lower Carbon Emissions with the Help of a New Regenerative Agriculture Collaboration in Europe
ADM and Bayer have extended their collaboration to promote regenerative agricultural practices in Europe. After a successful feasibility study with oilseed rape farmers in Poland, the project will expand to include more crops like corn, wheat, and barley across Eastern Europe. The study revealed a 15% reduction in carbon emissions for farms using regenerative practices, with potential reductions up to 40%. Farmers will receive financial and technical support, including agronomic guidance and compensation for each qualifying hectare. Bayer's digital tools, in collaboration with Trinity Agtech's Sandy platform, will verify emission reductions. The initiative aims to build a sustainable, lower-carbon supply chain, leveraging advanced science and agronomy capabilities.
- 15% reduction in carbon emissions for farms using regenerative practices.
- Potential for up to 40% reduction in carbon emissions with comprehensive adoption.
- Expansion to additional crops like corn, wheat, and barley.
- Broader geographic reach across Eastern Europe.
- Financial and technical support provided to farmers.
- Use of validated digital tools to measure and verify emissions reductions.
- Enhanced biodiversity and soil health.
- Creation of a resilient and sustainable supply chain.
- Increased consumer trust and potential for higher sales from sustainability-conscious buyers.
- Initial feasibility study to oilseed rape and a small geographic area.
- Challenges in scaling regenerative practices across diverse crops and regions.
- Dependence on continued financial and technical support for farmer participation.
- Potential risks if emission reductions are not as significant as projected.
Insights
The collaboration between ADM and Bayer to expand regenerative agriculture practices across Europe is a noteworthy development in the realm of sustainable farming. From a sustainability standpoint, the shift towards practices like minimum tillage, cover crops and nutrient management is instrumental in mitigating carbon emissions and enhancing soil health. The preliminary results, indicating a
From a financial perspective, this collaboration between ADM and Bayer is strategically sound. By investing in regenerative agriculture, both companies are not only addressing environmental concerns but also tapping into a growing market demand for sustainably sourced products. The compensation model for farmers and the technical support provided indicate a well-rounded approach to incentivizing the adoption of these practices. Yet, it's important for investors to consider the initial costs and time required for farmers to transition to these new methods, which could impact short-term financial performance. However, in the long run, the potential for cost savings through improved soil health and lower input costs, coupled with premium pricing for sustainably produced crops, could prove financially beneficial for both companies and participating farmers.
Analyzing the market implications, this initiative could significantly enhance the market positioning of ADM and Bayer. Consumers are increasingly prioritizing sustainability and companies that can demonstrate a commitment to environmentally friendly practices are likely to gain a competitive edge. The integration of Bayer's digital capabilities and Trinity Agtech’s Sandy platform provides a robust framework for measuring and verifying the impact of these practices, adding a layer of credibility that is important in the eyes of consumers and regulators. Nonetheless, the expansion into new crops and regions will require careful market analysis to understand local challenges and opportunities, ensuring that the program's benefits are effectively communicated to all stakeholders.
Last year, the companies embarked on a feasibility study to evaluate the impact of regenerative agriculture practices in curbing carbon emissions, increasing biodiversity and improving soil health. They worked with oilseed rape farmers covering approximately 9,000 hectares in
As part of the next stage of the collaboration, the program will expand into a broader range of crops such as corn, wheat and barley, and geographically across
- Minimum Tillage
- Cover Crops
- Companion Crops
- Nutrient Management
- Use of Organic Matter/Manure
- Crop Rotation
ADM will compensate participating farmers for each qualifying hectare, measured and verified using Bayer’s digital capabilities in collaboration with Trinity Agtech’s Sandy platform. The Sandy platform is a recognized solution backed by science that complies to the highest standards available in the market, with an easy-to-use tool for growers.
In addition to financial support, participating farmers receive agronomic guidance from specialized professionals. That support starts with a deep agronomical understanding of issues specific to each region in which the program is taking place, followed by individualized on-farm assessments, where agronomists visit fields and together with farmers design development plans tailored for each farm. Farmers are able to share their experiences with one another and discuss different techniques during field visits and peer learning opportunities.
The 2023 feasibility program was critical to shaping a larger-scale effort. Listening to the perspectives of growers was important to ensure all factors specific to the local region were considered. Primary data collection for greenhouse gas emission calculations and soil analysis with carbon sequestration measurement allowed the growers, ADM and Bayer to gain valuable insight into current environmental impacts and potential emission reduction opportunities as the program expands.
“We have been practicing regenerative agriculture for 15 years. We are constantly improving things. We tested first on a smaller area and based on the results, we decided to implement it on a larger area. Thanks to these activities, our carbon footprint is lower,” said Karol Pietnoczka, a farmer from West Pomerania.
“We conduct regenerative agriculture practices on the farm because it is profitable for us. However, they must be well balanced with other agronomic practices to achieve farm-wide success,” said Piotr Hulanicki, a farmer from Warmia-Masuria.
Candy Siekmann, director of Climate Smart Agriculture Origination at ADM, said, “Regenerative agriculture is foundational to our leadership in sustainability and decarbonization, and rolling out a regenerative agriculture program in
Lionnel Alexandre, Carbon Business Lead, EMEA for Bayer, said, “Developing a project with ADM in
About ADM
ADM unlocks the power of nature to enrich the quality of life. We’re an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. We’re a premier human and animal nutrition provider, offering one of the industry’s broadest portfolios of ingredients and solutions from nature. We’re a trailblazer in health and well-being, with an industry-leading range of products for consumers looking for new ways to live healthier lives. We’re a cutting-edge innovator, guiding the way to a future of new consumer and industrial solutions. And we're a leader in sustainability, scaling across entire value chains to help decarbonize the multiple industries we serve. Around the globe, our innovation and expertise are meeting critical needs while nourishing quality of life and supporting a healthier planet. Learn more at www.adm.com.
About Bayer
Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. In line with its mission, “Health for all, Hunger for none,” the company’s products and services are designed to help people and the planet thrive by supporting efforts to master the major challenges presented by a growing and aging global population. Bayer is committed to driving sustainable development and generating a positive impact with its businesses. At the same time, the Group aims to increase its earning power and create value through innovation and growth. The Bayer brand stands for trust, reliability and quality throughout the world. In fiscal 2023, the Group employed around 100,000 people and had sales of
ADM and Regenerative Agriculture
ADM defines regenerative agriculture as an outcome-based farming approach that protects and improves soil health, biodiversity, climate and water resources while supporting farming business development. ADM’s global regenerative agriculture programs feature direct financial support for farmers; easy processes and cutting-edge technologies to ensure low barriers to entry; and a broad range of support and guidance from both internal and third-party experts. A critical element of ADM’s approach is the recognition that different parts of the world are facing different environmental challenges, so specific program qualifications and practices are tailored to address specific environmental challenges in different regions around the globe.
ADM recently announced that its global regenerative agriculture efforts reached more than 2.8 million acres in 2023, and that the company had increased its 2025 goal to 5 million acres.
Source: Corporate Release
Source: ADM
View source version on businesswire.com: https://www.businesswire.com/news/home/20240612971160/en/
ADM
Jackie Anderson
media@adm.com
312-634-8484
Bayer
Alexander Hennig
alexander.hennig@bayer.com
+49 175 3089736
Source: ADM
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