Farmers Edge and Gevo Enter Collaboration on Climate-Smart Farm-to-Flight Project

Rhea-AI Summary

Farmers Edge Inc. and Gevo Inc. collaborate on Gevo's Climate-Smart Farm-to-Flight project to track and quantify carbon intensity impact, accelerating Sustainable Aviation Fuel and low-CI ethanol production. The project, funded by a USDA grant, involves working with growers across three states to promote climate-smart practices.

Insights

Environmental Economist

From an environmental economics perspective, the collaboration between Farmers Edge and Gevo is a strategic move that taps into the growing market for carbon credits and sustainable fuels. By quantifying the carbon intensity of agricultural practices, they are creating a system that could potentially offer financial incentives for farmers to adopt more climate-smart practices. This could lead to a larger supply of low-carbon feedstock for biofuels, which is important in an era where carbon footprint is increasingly factored into the value chain of products.

The integration of digital tools like FarmCommand® and Verity Tracking platform is expected to streamline data collection and verification processes, which are often barriers to entry for growers interested in participating in sustainability programs. These technologies could set a precedent for how agricultural data is managed and utilized for environmental reporting, potentially influencing future policy and market-based solutions for reducing greenhouse gas emissions in the agricultural sector.

However, the scalability and economic viability of these practices need to be closely monitored. The initial investment by growers and the return on investment through market incentives or carbon credits will determine the long-term success of such collaborations. Additionally, the $30M grant from the USDA indicates government support, but the ongoing financial sustainability of the program without such grants is an important factor for its future.

Agricultural Technology Analyst

Examining the partnership from an agricultural technology standpoint, the involvement of Farmers Edge, a company specializing in digital agriculture, signifies a forward-thinking approach to agricultural sustainability. The use of FarmCommand® for data capture and CI score calculation represents an advancement in precision agriculture, allowing for more accurate and efficient reporting of sustainability metrics.

The collaboration could serve as a model for how digital platforms can be utilized to support sustainability initiatives in agriculture. The data captured through these platforms not only aids in the production of Sustainable Aviation Fuel (SAF) and low-CI ethanol but also enhances the traceability of feedstocks, which is becoming increasingly important to consumers and regulators.

Nevertheless, the adoption of such technologies by growers hinges on their ease of use and the clear demonstration of added value. Training and support provided by Farmers Edge will be critical to the success of the program. There is also the question of data privacy and ownership that needs to be addressed, as growers may have concerns about sharing sensitive operational information.

Renewable Energy Analyst

From the perspective of a renewable energy analyst, the initiative to produce Sustainable Aviation Fuel (SAF) and low-CI ethanol is a significant step towards reducing the carbon footprint of the transportation sector, particularly aviation, which has limited alternatives to liquid fuels. The collaboration is poised to contribute to the energy transition by providing a renewable alternative that can be integrated into existing supply chains without major infrastructural changes.

However, the success of such projects also depends on the market acceptance and regulatory environment for biofuels. The current policy incentives, such as the USDA grant, are essential for kickstarting these initiatives, but the long-term viability will require competitive pricing and consistent demand for low-CI products. Additionally, the energy return on investment (EROI) of SAF and ethanol produced through these climate-smart practices must be evaluated to ensure that the energy balance is positive and sustainable in the long run.

While the collaboration is a step in the right direction, the pace at which SAF can be scaled up to meet aviation industry demands and the potential competition with food production are factors that could influence the trajectory of this market.

The companies will work with growers spanning three states to track and quantify the carbon intensity impact of climate-smart practices helping to accelerate the production of Sustainable Aviation Fuel (SAF) and low-CI ethanol

WINNIPEG, Manitoba--(BUSINESS WIRE)-- Farmers Edge Inc. a pure-play digital agriculture company, and Gevo Inc. (NASDAQ: GEVO), a leader in renewable fuels, have entered a collaboration as part of Gevo’s Climate-Smart Farm-to-Flight project that utilizes funding from a U.S. Department of Agriculture (USDA) grant.

Farmers Edge and Gevo Enter Collaboration on Climate-Smart Farm-to-Flight Project (Graphic: Business Wire)

Launched in 2023, Gevo’s Climate-Smart Farm-to-Flight project is aimed at tracking and quantifying the carbon-intensity impact of climate-smart practices while creating market incentives for low carbon-intensity (CI) corn to help accelerate production of Sustainable Aviation Fuel (SAF) and low-CI ethanol.

Farmers Edge has already been working with growers in Canada on carbon-intensity programs for the past 3 years and will bring their experience to the recruitment and education aspects of the project. Collaborating with growers across three states, Farmers Edge will support in the data capture associated with the qualifying sustainability practices and calculation of field-level CI scores. With hands-on training and support, participating growers will have access to the company’s market-leading platform, FarmCommand^®, and decades of agronomic expertise to provide the necessary reporting required for the project. Farmers Edge is committed to helping growers be the best by digitizing their operations and telling their sustainability story through data.

This data will then be provided to Gevo who will use their Verity Tracking platform to track the CI of the feedstocks from the field through the biofuel production.

The three locations for the program include Council Bluffs, Iowa, Lake Preston, South Dakota, and The Standing Rock Reservation. The Climate-Smart Farm-to-Flight project is supported by a $30M grant from the USDA’s Climate-Smart initiative.

"We are pleased to partner with Gevo in a program poised to accelerate the availability of a commercially viable Sustainable Aviation Fuel in the United States," expressed Amit Pradhan, VP of Strategy at Farmers Edge. "Our best-in-class platform, FarmCommand, coupled with Gevo’s Verity Tracking platform simplifies data acquisition and computation, enabling growers to easily verify the impact of sustainable farming practices through the value chain."

“By partnering with Farmers Edge, their trained staff can work with the growers to accurately collect the supporting data to best tell the grower’s story,” said Travis Deppe, Sr. Manager of Strategic Alliances at Gevo.

Grower enrollment for the 2024 season is underway. To learn more about the program or to enquire about eligibility under Farmers Edge, contact info@farmersedge.ca. Visit Farmersedge.ca or Gevo.com to learn more.

About Farmers Edge

Farmers Edge is a global leader in digital agriculture operating in North America, Brazil, and India. With best-in-class technologies, state-of-the-art soil and tissue testing laboratories, and robust datasets from over 20 million acres, Farmers Edge delivers managed IT services and tailored solutions to stakeholders across the agricultural ecosystem. Spanning from farmers to agri-retail, fuel, food, insurance, and financial services, Farmers Edge is accelerating digital adoption, creating a more unified, sustainable, and transparent value chain. For more information on Farmers Edge, please visit www.farmersedge.ca.

USDA

“This material is based upon work supported by the U.S. Department of Agriculture, under agreement number NR233A750004G076.

Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the U.S. Department of Agriculture. In addition, any reference to specific brands or types of products or services does not constitute or imply an endorsement by the U.S. Department of Agriculture for those products or services.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20240409336903/en/

Farmers Edge Media Relations:

Media@FarmersEdge.ca

Source: Farmers Edge Inc.

FAQ

What is the collaboration between Farmers Edge Inc. and Gevo Inc. about?

The collaboration is part of Gevo's Climate-Smart Farm-to-Flight project to track and quantify the carbon intensity impact of climate-smart practices to accelerate Sustainable Aviation Fuel and low-CI ethanol production.

What is Gevo's Climate-Smart Farm-to-Flight project focused on?

The project aims to create market incentives for low carbon-intensity corn by tracking and quantifying the carbon-intensity impact of climate-smart practices.

Where will the collaboration take place?

The collaboration will involve working with growers across three states, including Council Bluffs, Iowa, Lake Preston, South Dakota, and The Standing Rock Reservation.

What platforms will Farmers Edge and Gevo use for the project?

Farmers Edge will utilize their FarmCommand platform, while Gevo will use their Verity Tracking platform to track the CI of feedstocks from the field through biofuel production.

Who expressed optimism about the partnership with Gevo?

Amit Pradhan, VP of Strategy at Farmers Edge, expressed optimism about the program's potential to accelerate Sustainable Aviation Fuel availability in the United States.