Research

US farmers need broader support to overcome barriers to adopting sustainable practices

7 August 2025 14:02 RaboResearch
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Demand for sustainable farming practices is rising in the US, but farmers must first navigate the risks of operational change. A combined effort may be needed.

Intro

US farmers facing growing consumer and regulatory demand for more sustainable agriculture must first navigate the risks of operational change. These risks often slow adoption, reinforcing the need for robust risk management strategies.

In today's economic climate, overcoming barriers to adoption is especially challenging. While risk support should ease transitions, current programs often favor widely used crops and production methods – leaving alternative approaches underprotected.

This paper explores the risks influencing farmers' willingness to evolve their operations:

    Federal support programs – including crop insurance, disaster relief, and economic assistance – offer a critical safety net but don't fully meet the diverse needs of all farmers. Sustainable practices, though aimed at long-term productivity and value, can reduce short-term performance – highlighting the need for adaptive, transition-focused federal programs.

Disparity in support creates more barriers and can even amplify existing risks, curbing sustainable adoption. Farmers must weigh the risks of change and reduced support when stepping outside the norm. In a tough economic environment where most farmers are focused on preserving their operations for the next generation, many simply can't afford to take on greater risk to try something different.

Faced with this uneven playing field, many continue operating within current systems – limiting opportunities to meet growing sustainability goals.

While the One Big Beautiful Bill Act expands key farm safety net programs, questions remain about whether those efforts will meaningfully encourage further advancement of on-farm sustainability. A combined, concerted effort – including risk support, new market opportunities, and value chain engagement – may be necessary to help farmers meet rising consumer demands, build on decades of sustainability progress, and strengthen resilience for future generations.

Disclaimer

The information and opinions contained in this document are indicative and for discussion purposes only. No rights may be derived from any transactions described and/or commercial ideas contained in this document. This document is for information purposes only and is not, and should not be construed as, an offer, invitation or recommendation. Read more