Midwest Climate-Smart Commodity Program
The Soil and Water Outcomes Fund, in partnership with Iowa Soybean Association and other organizations, was one of 70 projects nationwide awarded funds by the USDA’s Partnerships for Climate-Smart Commodities initiative.
The Midwest Climate-Smart Commodity Program will provide direct financial incentives for farmers across 12 midwestern states to implement climate-smart practices on farms during the next five years.
The program has an approximate funding ceiling of $95 million through the USDA’s Partnership for Climate-Smart Commodities. USDA funding will be combined with approximately $60 million in corporate commitments for outcomes-based payments to farmers. This money also will be used for farmer enrollment assistance, outcome quantification, technical assistance, measurement, reporting, and verification, and underserved farmer outreach and enrollment.
The project will quickly scale using proven models and technology to produce verifiable carbon emissions credits and improve water quality. The project also will produce real world data on the costs and benefits of implementation to farmers and the environment, and support the development of markets for climate-smart commodities.
Target States
Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin
Projected Program Outcomes
Farmer Contracts
Total farmer payments of more than $110 million
An estimated 1,050-2,100 farmer contracts, of which 20% are reserved for underserved farmers
Greenhouse Gas Outcomes
The removal and reduction of 2.375-3 million metric tons of CO2e
Equivalent to removing 512,00-655,000 passenger vehicles from the road for one year
Water Quality Outcomes
Prevention of 51.3-67.5 million pounds of nitrogen from entering waterways
Prevention of 3.14-4.37 million pounds of phosphorus from entering waterways
Climate-Smart Commodity Outcomes
Production of an estimated 380 million bushels of corn
Production of an estimated 115.9 million bushels of soybeans
Production of an estimated 7.8 million bushels of wheat
What Our Partners Are Saying
Jim Andrew
Chief Sustainability Officer
PepsiCo
“Scaling regenerative agriculture will be key to tackling climate change and is a central pillar our PepsiCo Positive (pep+) transformation. The USDA grant and our partnership with the Soil and Water Outcomes Fund will catalyse action to capture up to 3.75 million tonnes of greenhouse gas emissions by scaling proven solutions to reduce and sequester emissions at the farm gate. Ultimately this will play a key role in building the resilience of the food system across American farmlands.”
Ryan Sirolli
Global Environmental Markets - Insets Lead
Cargill
“The Soil and Water Outcomes Fund has been an awesome partner. We have always appreciated the innovative nature of the program by incentivizing farmers for not only the greenhouse gas benefits created by adopting soil health systems, but also for the water quality improvements generated. SWOF has been effective at bringing municipalities, public and private companies, and state and federal partners together to create a unique opportunity for farmers and those of us downstream.”
Mike Naig
Secretary
Iowa Department of Agriculture
“We appreciate USDA’s investment in the Soil and Water Outcomes Fund which we’ve been proud to partner on for the past 2 years. This project is a great example of providing farmers and landowners with the tools they need and incentivizing them to protect our water, soil, and natural resources. As we continue to scale up and accelerate the adoption of proven conservation practices, this project highlights one of the many innovative approaches underway with public and private partners in Iowa to help achieve the water quality and soil health goals outlined in the Iowa Nutrient Reduction Strategy.”
Messages From Our Team
A message from Adam Kiel, Managing Director, Soil and Water Outcomes Fund
Project Partners
Lead Partner: Iowa Soybean Association
Other Major Partners: Soil and Water Outcomes Fund, PepsiCo, Cargill, Renewable Energy Group, Ingredion, Target, JBS, Coca-Cola, Mano y Ola, FarmRaise, Rural Community Assistance Partnership
This material is based upon work supported by the U.S. Department of Agriculture, under agreement number NR233A750004G002. Any opinions, findings, conclusions, or recommendations expressed in this web 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. USDA is an equal opportunity provider, employer, and lender.