RIPE is proposing that ag producers earn in the range of $100-$300 per acre or animal unit for voluntary stewardship practices such as cover crops, manure separation, or managed grazing.
The level of available funding that could be available to farmers and ranchers through a climate policy depends on several factors. RIPE analyzed multiple scenarios and believes that with growers’ advocacy, it is feasible to secure an annual fund for sustainable agriculture in the range of $38 billion a year. This would allow a medium-sized producer who chooses to participate in the program and invest in stewardship practices to earn in the range of $38,000 a year. Each participating grower will be ensured a payment level that includes three parts: Carbon Compensation, Stewardship Reimbursement, and Stewardship Incentive.
As an example, let us assume a carbon price of $50 per ton. Participating corn growers would receive three payments. First, there is a Carbon Compensation of $34 per acre, equal to the increased cost of inputs such as fertilizer and fuel. Second, a producer who is implementing cover crops would receive a Practice Reimbursement of $38 per acre, or the full average cost of the practice. Third, there is a Stewardship Incentive based on ecosystem service values totaling $108 per acre. A corn farmer with 450 acres would therefore receive a total annual payment between $32,400 and $48,600.
We look forward to sharing more about our calculations with interested stakeholders.