Sustainability Research Report 2019 - Trust In Food

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Sustainability Research Report 2019 - Trust In Food
Sustainability
   Research
      Report
        2019
Sustainability Research Report 2019 - Trust In Food
Executive Summary
                         One year ago, Farm Journal publicly launched the Trust In Food™ platform.
                         This effort represented a watershed moment in the history of our 142-year-old
                         organization. We stepped forward to dedicate a significant portion of our
                         business resources to work with leaders such as you to bolster consumer trust
                         in food. We recognize that an essential way to build that trust is to help scale
                         voluntary adoption of conservation agriculture practices that benefit farmers’
                         bottom lines, improve water quality and restore soil health.

Mitch Rouda, President   The insights you see on these pages—Trust In Food’s second annual
Trust In FoodTM          Sustainability Research Report, modeled after the inaugural 2018 report we
                         conducted in partnership with Field to Market—is intended to serve as a
                         baseline. It measures the perceptions and behaviors of farmers, ranchers and
                         growers about conservation agriculture practices, sustainable food systems
                         and the tools and resources that will allow agricultural producers to measure
                         today’s successes and tomorrow’s progress.

                         Data points from this research suggest five important takeaways for all
                         stakeholders along the value chain to bear in mind as they take their work
                         into the field this year and beyond:

                         •   The majority of farmers are unfamiliar with supply chain
                             sustainability metrics.
                         •   Farmers recognize consumer trends create pressure but
                             remain autonomous.
                         •   Financial benefits are the most important factor for farmers making
                             on-farm sustainability decisions.
                         •   Few farmers know their carbon footprint, though they are farther ahead
                             on other sustainability practices.
                         •   Farmers say their definition of sustainability varies from
                             consumers’ definition.

                         Some of these findings come as no surprise. Others present challenges for us
                         to consider with fresh eyes. Whatever perspective you bring to these data
                         points, it is our hope that you use them as a foundation for collaboration with
                         the spirit of partnership, understanding that we can learn from diverse points
                         of view.

                         Think broadly and deeply about these subjects and about ways we can all
                         help each other build trust for our food system—through the valuable and
                         unique roles we each play.

                         MITCH ROUDA

                                               2
Executive Summary
Each year, Farm Journal surveys a broad range of farmers growing or raising row crops,
specialty crops, cattle, dairy and hogs to provide key insights into sustainability and
conservation agriculture trends across America’s farmland. This year, the survey included
950 respondents (almost double last year’s) with a margin of error of +/- 3.2%.
The purpose of this research is to better understand:

      How farmers, ranchers, growers and other food producers define sustainability.

      The degree to which farmers have adapted on-farm sustainability practices.

      Farmers’ expectations of food companies and food retailers related to sustainability.

      Needs and interests surrounding sustainability practices, information and education.

   Survey Snapshot: Farmers, Growers and Ranchers Speak Out
80%
            72%
70%                     67%
60%                                  59%                                                               57%
50%

40%

30%

20%
                                                              12%                             13%
10%                                               6%                                   2%
 0%

  Average   CORN     SOYBEANS      WHEAT       COTTON       PRODUCE*        Average   DAIRY   HOGS     CATTLE
 Acreage:    509         497         244          695         6,417           Head:    259    15,468    270
                                                          *30% of acreage
                                                          is organic

Understanding farmer’s perceptions of conservation and sustainability, as well as their
on-farm practices, plays a critical role in informing efforts to scale conservation-minded
behaviors. Likewise, this insight is critically important for forecasting agricultural and
agri-economic trends, which will shape our food system in the years to come. What follows
are the results of our survey along with five key takeaway macro-level trends.

Trust In Food™ will build on this baseline each year, tracking behavioral and perception
shifts over time to inform the industry.

                                                        3
What Food Producers
Think About Sustainability
Nearly 81% of respondents consider themselves farmers, 32% ranchers, 19% growers and
12% food producers. Respondents could select more than one option.

   What is your role on your farm or ranch?

                            0%    10%    20%    30%     40%   50%    60%    70%    80%   90%

                  FARMER                                                               81%
                RANCHER                               32%
                 GROWER                    19%
       FOOD PRODUCER                    12%
          NOT INVOLVED           1%
                    OTHER         5%

                                                    4
Takeaway No. 1:

    The Majority
   Of Farmers Are
   Unfamiliar With
    Supply Chain
Sustainability Metrics

            5
Farmers clearly believe consumers want sustainable food, but they’re divided on how swiftly
those beliefs will require them to make changes in their on-farm sustainability practices. Almost
half (44%) of farmers don’t know when consumer pressure for sustainable food will affect their
operation, yet an increasing number (22%, up from 17% in last year’s survey) believe this will
happen in the next five years.

   H ow
       soon will your operation be affected by
   consumer pressure for sustainable food?

                      44%                                14%                 22%                       20%
                     I HAVE                            WITHIN THE        WITHIN 2 TO                WITHIN 5 TO
                    NO IDEA                            NEXT YEAR          5 YEARS                    10 YEARS

Three fourths of farmers (75%) are not using any tools to measure their sustainability performance.

   A re
       you currently using any tools to measure sustainability
   performance or recommend best practices?

                                     YES   25%
                                     NO    75%

Close to three quarters (72%) of farmers have not seen specific sustainability goals from a
food or beverage company. Nor have they been asked to respond to supply chain surveys
or questionnaires about sustainability from the stakeholders in their supply chain.

   H aveyou seen specific                     12%
   sustainability goals from                     YES
   a food company?

                                      16%
                                   NOT SURE

                                                                          72%
                                                                           NO

                                                          6
Takeaway No. 2:

Farmers Recognize
 Consumer Trends
Create Pressure But
Remain Autonomous

           7
D o   consumer sentiments or demands influence farming practices?

                                          YES   67%
                                          NO    33%

More than half (61%, up from 55% in last year’s survey) say they think consumer interest in
sustainable food “will be a factor in the near future, and I will make it a priority soon.” Meanwhile,
21% (down from 23% in last year’s survey) say they think it will be a factor but will leave it to the next
generation while only 18% (down from 22% in last year’s survey) say it won’t be a factor.

   W hichof the following statements best describes your
   feelings about consumer interest in sustainable food?
                                     0%   10%   20%   30%   40%   50%   60%   70%   80%   90%

          I DON’T THINK IT WILL
                BE A FACTOR.                     18%

  I THINK IT WILL BE A FACTOR,
              and I will make it                                          61%
                 a priority soon.

  I THINK IT WILL BE A FACTOR,
        but I will leave it to the                21%
               next generation.

                                                             8
A decreasing number (36% this year, down from 41% last year) of farmers think most farmers already
are operating sustainability, while an increasing number (41%, up from 38% last year) say farmers must
operate sustainably and need to make progress in certain areas.

    D o
       you believe sustainable farming practices are
    essential to the future of agriculture?
                                             0%   10%   20%   30%   40%    50%   60%   70%   80%   90%

           YES, but I believe most farmers
            already operate sustainably.                             36%

     YES, I believe farmers must operate
     sustainably, and we need to make
         more progress in certain areas.                                  41%

     YES, I believe farmers must operate
     sustainably, and we need to make
              significantly more progress.
                                                         18%

 NO, I think it’s a bunch of media hype
   that will never amount to anything.             5%

The majority (62%) of farmers think food manufacturers and retailers should engage farmers on achieving
sustainability outcomes if farmers can choose which practices work best to deliver a particular outcome
on-farm. Just over one in four farmers (28%) said it should be a strictly business transaction, pointing to the
importance of farm autonomy and economic viability in sustainability decisions.

    W hich
         of the following statements best describes the relationship food
    manufacturers and retailers should have with farm operations?
                                                              0%    10%   20%    30%   40%   50%   60%   70%   80%   90%

     They should buy products from farm operations
   with no recommendations on sustainable farming
 practices. It should be strictly a business transaction.
                                                                                  28%

       They should buy products from farm operations
      and engage farmers on achieving sustainability
    outcomes, but allow for freedom to choose which
    sustainable farming practices work best to deliver                                               62%
               that outcome on a farmer’s operation.

      They should buy products from farm operations
     and also require operations to adopt sustainable
        practices. They can help operations achieve                   10%
              industry sustainability standards that will
              encourage future consumer purchases.

                                                          9
Takeaway No. 3:

  Financial Benefits
    Are The Most
Important Factor For
  Farmers Making
On-Farm Sustainability
      Decisions

           10
More than half of farmers say they’re not sure if they would use tools to adopt sustainable farming
practices presented by food manufacturer or retailers.

      I f
        a food manufacturer or retailer                                                     4%
                                                                                            NO
      provided you with tools to adopt
      sustainable farming practices,
      would you use them?
                                                           41%
                                                               YES

                                                                                                        55%
                                                                                                   NOT SURE

When asked about incentives that would be required “for you to make changes to your
management practices to deliver sustainability outcomes,” on a scale of 1 (most valuable) to 6
(least valuable), farmers overwhelmingly chose price premium. This indicates farmers’ willingness
to undertake on-farm changes if it makes economic sense for them.

   P leaserank what incentives a food manufacturer
   or food retailer would need to offer for you to                                                  1      2      3   4       5      6
   make changes to your management practices                                                      Most valuable            Least valuable
   to deliver sustainability outcomes.

 88%
                  PRICE PREMIUM                      COST-SHARING FOR IMPLEMENTING                        FREE TECHNICAL
                                                        SUSTAINABILITY PRACTICES                            ASSISTANCE

                                                               40% 35%
                                                                                                         26% 24%
                                                                                                                 23%
                                                                           15%                                              13% 11%
             8%     2                                                              5%       4%     3%
                        %
                            1   %
                                    0   %
                                             1   %
                                                       1   %

  1           2      3       4       5       6         1         2    3        4    5        6     1      2       3   4      5      6

             PREFERRED MARKET                          CONSUMER ADVERTISING ON                      INDUSTRY RECOGNITION FOR
                  ACCESS                             FARMER’S SUSTAINABILITY EFFORTS               SUSTAINABILITY PERFORMANCE
                                                                                                                                   60%
                                                                                   48   %

                            37%
             21% 24
                    %
                                                                                            20%                             22%
                                    12                               11% 14
                                         %                                     %
                                                                                                                  4% 10
                                                                                                                        %
 3%                                                    1% 6                                         2% 2%
                                                            %
                                             3%
  1           2      3       4       5       6         1        2     3    4        5        6      1     2       3    4      5      6

                                                                          11
Takeaway No. 4:

Few Farmers Know
  Their Carbon
Footprint, Though
They Are Farther
Ahead On Other
  Sustainability
    Practices

         12
The research found only 4% of farmers know their carbon footprint. Of those who know their
footprint, 59% say it is decreasing, 28% say it is staying the same and 13% say it is increasing.

   H aveyou calculated the                              4%
   carbon footprint for your                             YES
   farming/ranching operation?

                                                                                  96%
                                                                                   NO

   H ow    is your carbon footprint changing?

                       13%                         59%                             28%
                  INCREASING                   DECREASING                  STAYING THE SAME

    H ow   much of your acreage is managed using:
   CONSERVATION TILLAGE                           FIELD TILING                           TERRACING

 DON’T                                  DON’T                                   DON’T
 KNOW       1%                          KNOW      1%                            KNOW       2%
 NONE             11%                   NONE                        34%          NONE                      54%
 1-24%           8%                      1-24%             15%                   1-24%               18%
25-49%           8%                    25-49%             14%                   25-49%          8%
50-74%                15%              50-74%           12%                     50-74%       6%
75-99%                15%              75-99%           13%                     75-99%       5%
  100%                          41%      100%          11%                        100%        7%

                                                         13
W hat    percentage of your on-farm acreage is devoted to:

         WETLANDS                                WILDLIFE HABITAT PRESERVATION
DON’T                                         DON’T
KNOW     2%                                   KNOW        1%
 NONE                              58%        NONE                        38%
 1-24%                     39%                 1-24%                               54%
25-49%   0%                                   25-49%        4%
50-74%   0%                                   50-74%      1%
75-99%   0%                                   75-99%      1%
  100%   0%                                    100%       1%

  CULTIVATED CROPLAND                     GRASSLAND/PASTURE                              FOREST

DON’T                                DON’T                                   DON’T
KNOW     0%                          KNOW      0%                            KNOW        2%
 NONE          10%                    NONE                        28%        NONE                        46%
 1-24%   3%                           1-24%                              47% 1-24%                   44%
25-49%        8%                     25-49%          10%                    25-49%            7%
50-74%               20%             50-74%         7%                      50-74%     1%
75-99%                           53% 75-99%         7%                      75-99%     0%
 100%         6%                      100%      1%                              100%   0%

EDGE OF FIELD RIPARIAN BUFFERS                      WATER WAYS (Lakes, Rivers, Streams, Ponds)

                                                         DON’T
DON’T
         3%                                              KNOW      1%
KNOW
NONE                       39%                           NONE               24%

 1-24%                              55%                   1-24%                                    73%

25-49%   2%                                              25-49%     2%

50-74%   1%                                              50-74%    0%

75-99%   0%                                              75-99%    0%

 100%    0%                                               100%     0%

                                                     14
O n   what percentage of your on-farm planted acreage do you:
   USE INTEGRATED PEST                  USE GENETICALLY                 USE MANURE AS
      MANAGEMENT                        ENGINEERED SEED                    FERTILIZER

DON’T                              DON’T                           DON’T
KNOW       4%                      KNOW     2%                     KNOW      0%
NONE                        30%     NONE           19%             NONE                                   43%
 1-24%           12%                1-24%   4%                      1-24%                     25%
25-49%     5%                      25-49%   5%                     25-49%              11%
50-74%         8%                  50-74%        11%               50-74%         7%
75-99%               13%           75-99%              19%         75-99%         6%
 100%                       28%     100%                     40%    100%           8%

    RAISE USDA CERTIFIED ORGANIC CROPS                             USE COVER CROPS
DON’T                                                         DON’T
KNOW       2%                                                 KNOW     0%
 NONE                                              94%        NONE                                  44%
 1-24%     2%                                                  1-24%                         27%
25-49%    1%                                                  25-49%             11%
50-74%    0%                                                  50-74%         8%
75-99%    0%                                                  75-99%    4%
 100%      1%                                                  100%         5%

   USE SOIL SAMPLING (Grid or Zone)
DON’T
KNOW      1%
NONE            10%
 1-24%          9%
25-49%     5%
50-74%          9%
75-99%                18%
 100%                             48%

                                                 15
Takeaway No. 5:

 Farmers Say Their
    Definition Of
Sustainability Varies
 From Consumers’
     Definition

          16
of the following criteria do you
   W hich                                                           O fthe following sustainability
   associate with sustainable agriculture?                           criteria, which five do you think
                                                                     consumers care about most?
                                                    TOP 5                                                 TOP 5
       CROP ROTATION                                        70%        ORGANIC FARMING                            37%

   MANURE AS FERTILIZER                                64%                  WILDLIFE HABITAT
                                                                              PRESERVATION
                                                                                                                  37%

       WILDLIFE HABITAT
         PRESERVATION
                                                      63%          WATER QUALITY TESTING                          36%

 CONSERVATION TILLAGE                                 62%                        SEED TRAITS               22%

  ROTATIONAL GRAZING                                56%                       WIND ENERGY                 19%

    ON-FARM WETLANDS              22%                                 ON-FARM WETLANDS          7%

         SOLAR ENERGY               28%                                      SOLAR ENERGY                18%

             FIELD TILING                36%                       CONSERVATION TILLAGE              13%

           INTEGRATED
     PEST MANAGEMENT
                                              43%                               FIELD TILING   3%

    ORGANIC FARMING         12%                                     ROTATIONAL GRAZING          5%
                                                                             INTEGRATED
          WIND ENERGY             23%                                  PEST MANAGEMENT          7%

LOW-VOLUME IRRIGATION         19%                                 LOW-VOLUME IRRIGATION         7%

             SEED TRAITS                  39%                                      BIOFUELS          14%

               BIOFUELS                 32%                          WASTE MANAGEMENT               8%

   WASTE MANAGEMENT           20%                                    MANURE AS FERTILIZER            14%

             TERRACING                    40%                                    TERRACING     1%

 WATER QUALITY TESTING                  32%                                   COVER CROPS           11%

                                                                     ADVANCED NUTRIENT
         COVER CROPS              22%                                    MANAGEMENT                  12%
   ADVANCED NUTRIENT
       MANAGEMENT                       36%                                 CROP ROTATION       5%

          BUFFER STRIPS                       43%                              BUFFER STRIPS        10%

                                                            17
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www.TrustInFood.com
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