Amid rising costs and regulatory uncertainty, a new pilot program is aiming to help farmers finance the transition to regenerative agriculture. The program, backed by a $750,000 investment from the Walton Family Foundation, offers private conservation loans with discounted interest rates for farmers who adopt sustainable practices to enhance soil health, water quality, and climate resilience.
The initiative is led by the Farmers Business Network (FBN), an agriculture e-commerce marketplace, and is known as the Regenerative Agriculture Financing Land Loan pilot program. It is designed to address some of the financial barriers that farmers face when attempting to adopt regenerative farming methods. These practices, which include crop rotation, cover cropping, and reduced tillage, are seen as essential for restoring ecosystems and improving long-term agricultural productivity.
Under the pilot program, farmers who implement conservation practices that meet environmental criteria developed by the Environmental Defense Fund and Gradable a sustainable grain platform co-owned by FBN and ADM will receive discounted interest rates ranging from 0.25% to 0.5% on newly financed land loans. These loans, which can be used for purchasing or refinancing farmland, will be available for a seven-year term. Eligible farmers are expected to save approximately $5,000 to $6,000 per year as a result of the reduced rates, providing crucial financial relief during the challenging transition period.
The goal of the program is to support about 20 farmers initially, serving as a “proof of concept” before potentially expanding to a wider audience. Dan English, general manager of FBN Financial, emphasized that while many farmers are interested in transitioning to regenerative agriculture, they often face significant financial challenges that prevent them from making the shift. This program is designed to address that need by providing affordable capital to help with the adoption of sustainable practices.
The Walton Family Foundation’s Moira Mcdonald, who directs the environmental program, highlighted the importance of the initiative, stating that promoting regenerative agriculture can protect both natural resources and farm productivity. By improving soil and water quality, regenerative practices can help mitigate the effects of climate change, reduce pollution, and promote biodiversity. This aligns with the Foundation’s broader mission to support efforts that combine economic and environmental benefits.
The pilot builds upon the success of FBN’s earlier efforts to finance regenerative farming practices. FBN launched its sustainable financing program in 2021 with support from the Environmental Defense Fund. The program, which initially provided operating loans to farmers adopting regenerative techniques, has grown significantly, supporting 140 farmers in 2024. The overwhelming demand for such loans demonstrates the increasing interest among farmers in sustainable farming practices, despite the financial challenges posed by the current economic climate.
While the new land loan pilot is still in its early stages, it marks an important step toward expanding financial support for regenerative agriculture. It could also signal a larger role for private companies and philanthropic partnerships in driving the adoption of sustainable practices. Given the ongoing uncertainty around federal climate funding, private investment in regenerative agriculture could play a key role in accelerating the transition to more sustainable farming systems.
As the farm economy faces challenges and federal funding for climate initiatives remains uncertain, programs like this are critical in helping farmers adopt practices that will not only improve their long-term productivity but also contribute to the health of the planet. With the backing of key partners and foundations, regenerative agriculture may become more accessible to farmers who have long struggled to secure the necessary capital to make the transition. This pilot program could provide valuable insights into how to scale up these efforts and create lasting change in agricultural practices across the country.
