USDA to invest $1bn in “climate-smart commodities” and market expansion

The new Partnerships for Climate-Smart Commodities opportunity will finance pilot projects that create market opportunities for US agricultural and forestry products that use climate-smart practices and include innovative, cost-effective ways to measure and verify greenhouse gas benefits. USDA is now accepting project applications for fiscal year 2022.

“America’s farmers, ranchers, and forest owners are leading the way in implementing climate-smart solutions across their operations,”​ said Vilsack.

“Through Partnerships for Climate-Smart Commodities, USDA will provide targeted funding to meet national and global demand and expand market opportunities for climate-smart commodities to increase the competitive advantage of American producers. We want a broad array of agriculture and forestry to see themselves in this effort, including small and historically underserved producers as well as early adopters.”

For the purposes of this funding opportunity, a climate-smart commodity is defined as an agricultural commodity that is produced using agricultural (farming, ranching or forestry) practices that reduce greenhouse gas emissions or sequester carbon.

Funding will be provided to partners through the USDA’s Commodity Credit Corporation for pilot projects to provide incentives to producers and landowners to: implement climate-smart production practices, activities, and systems on working lands; measure/quantify, monitor and verify the carbon and greenhouse gas (GHG) benefits associated with those practices; and develop markets and promote the resulting climate-smart commodities.