New report maps out key paths for building more resilient agricultural supply chains

A new Ceres report reveals four important takeaways for companies and financial institutions on the current opportunities and barriers to scaling sustainable and resilient agricultural practices in corporate supply chains.  

Notably, the new report, Cultivating Resilience: A Primer on Corporate Investment in Agricultural Supply Chains, shows many of the largest companies are already acting – working with farmers and ranchers to adopt more resilient practices. However, Ceres finds that more participation at greater scale is needed to transition the sector and reap the most benefits from action. 

Ceres’ analysis is based on extensive research into existing corporate programs as well as interviews with more than 20 major companies and other stakeholders across the sector. Specifically, the analysis found:  

• Collaborative action is essential: Most companies draw from the same supply sheds, which means that working together can unlock shared solutions. 

• Lower barriers to entry would increase participation: Most supply chain programs are financed by larger companies with substantial sustainability teams and budgets that focus on commodities that make up a significant proportion of their sourcing.   

• Streamlined accounting could help enable co-investment: Companies are spending too much for measurement, monitoring, reporting, and verification that help them understand how their farm investments translate into measurable results, such as emission reductions or water quality improvements. 

• Innovation can bring financial institutions to the table: Food and agriculture companies cannot finance the scaling of sustainable and resilient agriculture alone – especially given uncertainty around public funding programs. 

“Ceres’ new report highlights that companies are increasingly investing in programs that support farmers and ranchers as part of business strategies to ensure their future profitability and the resilience of the food and agricultural sector,” said Meryl Richards, program director, food and forests at Ceres, who authored the report. “By digging into successful corporate projects and talking with industry experts, we were able to uncover the considerable opportunities to scale action, along with the challenges that are slowing down more robust, sector-wide progress.”  

Ceres' report comes as the food and agricultural sector is facing escalating risks from climate-fueled extreme weather – from heat waves to droughts to floods that reduce crop and pasture productivity. At the same time, the sector is responsible for one-third of global greenhouse emissions, with the bulk coming from land use change and agricultural activities in corporate supply chains.  

To tackle this climate risk, companies should disclose emissions across their entire value chain, set science-based reduction goals, and develop climate transition action plans with a focus on providing technical and financial support to farmers. Earlier this year, Ceres found 22 of 50 of the largest food companies in North America are making such investments that are benefiting the entire industry. 

In the report released today, Ceres details 15 examples of company-backed projects in the U.S. that are bringing together companies, farmers’ organizations, and nonprofit organizations across supply sheds to support sustainable and resilient agricultural programs. Among the projects included are a Practical Farmers of Iowa program backed by PepsiCo and Unilever to reduce nitrogen application in corn production that promises a per-acre payment if a yield drop occurs, and a Starbucks’ program with dairy cooperatives to share costs for deploying on-farm, methane-cutting technologies, such as manure digestors, using cover cropping, purchasing electric tractors, and reducing water use.  

The report also analyzes the status of supply chain initiatives for specific agricultural commodities, including row crops, dairy, and beef. Row crops initiatives were identified as the most developed of the commodities, with successful corporate models pairing cost-share programs or performance-based payments with technical assistance, peer learning, and implementation through cooperatives or local nonprofits. 

This latest report complements and builds on Ceres' previous analyses of pathways for companies and investors to advance a more sustainable and profitable food sector, including Unlocking Opportunity: Addressing Livestock Methane to Build Resilient Food Systems and Cultivating Innovation: Practical Solutions for Companies to Reduce Agriculture Emissions. Ceres also tracks corporate progress through its Food Emissions 50 initiative, which supports investors engaging major food companies on emission reductions. 

Ceres report was made possible with the support of The Platform for Agriculture + Climate Transformation (PACT). 

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About Ceres  

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world's sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line. For more information, visit ceres.org.