Farmers in North America are facing financial challenges as rising input costs and unpredictable global trade have pushed crop prices below production costs. This situation has forced many U.S. farmers to decide whether to continue or leave the industry, marking the most difficult period for agriculture since the 1980s. Farmers in developing countries, most of whom operate on small plots of less than five acres, have long dealt with similar hardships, often lacking access to financing and technology that could improve their productivity.
Current economic pressures mean that even highly productive farmers are finding it hard to maintain yields and profits. The article argues that sustainability should not be deprioritized during these times. Instead, strengthening sustainable supply chains—from farms to food companies—is seen as vital for ensuring farmer prosperity.
There is cautious optimism about sustainability’s potential role in transforming agricultural economies and food systems. Farm viability is increasingly at risk due to factors such as changing weather patterns, higher operating expenses, and volatile market prices. Sustainable farming practices can help reduce these risks by improving soil health and diversifying income sources; however, these methods require investment and data-driven planning—resources that fewer farmers can afford.
New partnership models and risk-sharing arrangements are emerging across agricultural supply chains. These initiatives mean that farmers do not have to bear all the risks alone. Partnerships involving farmers, processors, service providers, carbon markets, and governments are becoming more common.
For example, AgSpire works with U.S. farmers and ranchers to implement regenerative agriculture practices that support both profitability and sustainability while helping them enroll in carbon credit programs to offset investment costs.
Companies like PepsiCo aim to transition seven million acres of farmland to regenerative practices by 2030 by sharing resources with suppliers. ADM has set a goal of having five million acres under regenerative management by 2025 through investments supporting farmer sustainability efforts.
In higher-risk markets globally, RTI International uses funding from public, private, and philanthropic sources to build sustainable supply chains for major food brands such as PepsiCo and Starbucks. Their work focuses on enabling smallholder farmers in low- and middle-income countries to participate in these sustainable networks.
While more development is needed for these models to reach scale, their growth marks a promising start toward greater farm resilience.
The consequences of failing to act are significant: ongoing bankruptcies among farmers contribute to consolidation within the sector. As land becomes concentrated among larger farms—which studies indicate tend toward monoculture—there is an increased risk of less sustainable practices taking hold within supply chains. Large vertically-integrated operations may also become price-makers rather than takers, isolating smaller independent producers further.
Longer supply chains resulting from reduced local sourcing can increase environmental impacts and waste while reducing economic benefits for rural communities.
Sustainable supply chains offer a way forward but require involvement beyond just the farming community itself. The article calls for broader participation from retailers, manufacturers, processors, and technical assistance providers who can share some of the risks previously borne solely by farmers.
The piece concludes: “It is heartening to see large food and agriculture companies meeting the moment with an increasing flurry of regenerative and sustainable agriculture commitments. Building a sustainable supply chain depends on their continued innovation coupled with farmer-inspired solutions, bold leadership, and a shared responsibility for our food system, including the financial viability of the farming businesses that underpin it.”
RTI International will address these topics further at its breakout session during GreenBiz on February 18 alongside experts from ADM, AgSpire, PepsiCo, and a U.S. farmer.
