September 3, 2024
Being a good land steward is good on many levels, but getting paid to do so is like icing on the cake.
The New York Outcomes Fund, an endowment initiative funded by Cargill and endorsed by the New York Corn & Soybean Growers Association, pays farmers for sustainable outcomes.
“This conversation started with water. How do we improve sustainability across so many facets? I’m not a farmer; I’m an investor. You can’t really do this without partners. It starts with all of you,” said Alan Martinez, a senior manager for strategic partnerships at Cornell Atkinson Center for Sustainability, at a recent crop tour at Rodman Lott & Sons Farm.
The program began in 2023 with 1,000 enrolled acres as the initial goal. Currently, 15,000 acres are enrolled. Enrollment begins in fall, and farmers sign annual contracts. The premium paid to farmers averages $30 an acre for planting cover crops, using extended crop rotations and reducing tillage in exchange for sequestering carbon and improving water quality.
OUTCOMES FUND: Alan Martinez talks about the New York Outcomes Fund pilot project at the recent summer field crop tour at Rodman Lott & Son Farms. (Photo by Deborah Jeanne Sergeant)
Half of the premium is paid to farmers upfront to help cover the costs of undertaking new conservation measures.
“These practices can be part of modifications that lead to a more sustainable environment,” Martinez said, adding that the goal is to enroll even more farmers for this year and next year.
Dan Yeoman, managing director of the Soil and Water Outcomes Fund, called the arrangement a “partnership,” meaning farmers work with the Soil and Water Outcomes Fund to decide what practices could benefit the farm and the environment.
What do farmers think of the program?
Matt Toussaint and Leslie Hamilton are two farmers who have participated in the pilot.
Hamilton’s operation, Triple H Farms in Livingston County, N.Y., grows 1,400 acres of grain, corn and soybeans, along with 200 acres of vegetables. The farm tries to grow cover crops, but Hamilton said that “it’s hard to cover crop; it depends on the season.”
In years where it’s a race against the weather to get the harvest in, cover crops are not a priority.
Toussaint, managing partner at Toussaint Farms LLC in Orleans County, N.Y., uses cover crops on his vegetable fields. The farm also raises field crops. He liked the idea of “a program to help us get paid to do what we’re doing” and joined the pilot.
Hamilton said she talked to a lot of neighboring farms who were also involved in the program and realized that it wouldn’t work on all her farm’s rotations, but some measures such as reduced tillage have become part of the farm’s regular practices.
“We’re hoping to do more things this year,” she said.
FARMER REACTION: Matt Toussaint (from left), Leslie Hamilton and Dan Yeoman paneled a discussion on New York Outcomes Fund’s pilot program. (Photo by Deborah Jeanne Sergeant)
Toussaint said enrollment was easy and initially took 20 minutes.
“Setup is the biggest thing,” Hamilton added. After that, the farm’s information gathering is minimal. She is considering using an app to keep her information organized and easy to access.
Toussaint likes getting half the payment upfront, as this helps with expenses. But “if you can’t quite do what you intended, then the second payment is a little lower,” he added.
The effects on the farm go beyond the bottom line. Hamilton said she has seen benefits from her improved farming practices, especially during dry years.
Toussaint said the program “has been very good for us so far.”
How can a farm qualify and get paid?
Fields must be in an eligible Great Lakes watershed county and must be designated highly erodible (HEL) and wetlands compliant. Enrollment forms must have past and proposed practice information, and field boundaries.
Farmers get 50% of the payment based on estimated outcomes within two weeks from contract signing to help with seed and other costs. The remaining 50% is paid after outcomes and practices are verified in the spring.
The environmental outcomes are purchased by a combination of public and private organizations to achieve their regulatory and voluntary sustainability goals, such as Scope 3 emission insets, with reduced risk and increasing cost efficiency. Specific buyer information is shared with farmers once the final outcomes payment has been made.
Farmers can’t use this program in conjunction with a government cost-share program. This will be monitored and verified with affiliated government programs. Any acres discovered will automatically be disqualified from the New York Outcomes Fund.
The program is accepting enrollees. Learn more at nyoutcomesfund.com to begin the enrollment process.
Sergeant writes from central New York.
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