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MBN USA

June 08, 2022

Diversity in agriculture expands access to capital for all

According to the United States Department of Agriculture, agriculture, food and related industries contributed $1.055 trillion, or 5%, to the U.S. gross domestic product in 2020. Output from America’s farms contributed $134.7 billion of this sum — about 0.6% of GDP. While significant, this marks a decline for the first time since 2015, likely due to the COVID-19 pandemic.

This dip in production comes after several years of recovery driven by new technologies, updated farming practices and growing interest in agriculture.

Diversity shapes the future

Price, safety, taste and convenience are the foundational criteria for America’s food system, influencing industrial agriculture from the beginning. While that foundation remains, consumer demands have evolved. In his Future of Agriculture podcast, host Tim Hammerich identified seven consumer values shaping the industry’s future. Drawing from interviews with dozens of experts, he posits that the following will influence how consumers shop, eat and vote: climate impact, nutrition/health, connection to an authentic source, fun and social experiences, hunger and poverty alleviation, waste reduction and social impact.

These criteria are reflected in trends in the industry, such as the adoption of electric vehicles, a focus on the health and preservation of pollinators, experiments with no-till farming, the growth of the bioplastics industry and recruitment of new and diverse stakeholders into the agriculture ecosystem.

Attracting new talent to the agriculture industry is an urgent mission. The average age of current farmers is 60 years old, an age many begin considering retirement. This looming shortage of farmers combined with a commitment to increasing diversity is opening doors for minorities within the industry.

According to the 2017 Census of Agriculture — the most recent data available — while the total number of male farmers declined compared to 2012, the number of female producers jumped nearly 27 percent, from 970,000 to 1.23 million. The industry is also seeing an uptick in minority representation. While the total number of U.S. producers rose by 6.9 percent between 2012 and 2017, the total number of minority farmers — including Hispanic, American Indian, Black and Asian — increased by 9.6% during the same time span.

In February 2021, Cargill Inc. launched its Black Farmer Equity Initiative to help address racial inequity in agriculture with a focus on increasing the participation, profitability and productivity of Black farmers, ranchers and growers. On the initiative’s first anniversary, Cargill announced partnerships with the National Black Growers Association, the National Minority Supplier Diversity Council, 100 Ranchers, Communities Unlimited and more.

“Programs like Cargill’s Black Farmer Equity Initiative provide new ways for Black producers to access markets and sell their livestock and crops. We’re looking for an open door where they have been closed in the past,” said Kimberly Ratcliff, a second-generation rancher and executive director of the 100 Ranchers Inc. “Cargill’s support of 100 Ranchers will help increase Black producers’ bottom line and improve their livelihoods by producing high-quality products.”

During its first year, the Black Farmer Equity Initiative launched supply chain programs to expand opportunities, access to capital and markets for farmers in cotton and beef. The initiative will continue increasing the number of Black producers in these supply chains while adding corn, yellow peas, poultry and soybeans, each year. Cargill is also currently recruiting farmers to participate, with specific focus on Alabama, Arkansas, Georgia, Louisiana, North Carolina and Texas.

Supplier diversity in Ag

In addition to reporting on the number of women and minority farmers, the 2017 Census of Agriculture revealed their economic contributions. The total market value of agricultural products sold by farms with women producers was $148 billion in 2017, while minority farmers contributed $35 billion in market value. Those numbers are expected to rise when data from the 2022 Census of Agriculture is released.

The increased numbers of women and minorities involved in agriculture, and farming, in particular, means more opportunities to work with diverse suppliers. Companies across industries can benefit from partnering with diverse suppliers in the agricultural sector, but we already see ag’s major corporations focusing on supplier diversity.

As mentioned above, Cargill is actively addressing racial inequity through its Black Farmer Equity Initiative. In addition, the corporation has a publicly stated goal of spending $1 billion with minority and women-owned businesses around the world.

Corteva Agriscience’s Michelle Morin summed up the benefits of the company’s supplier diversity mission.

“By working with suppliers that have historically been overlooked and who might continue to face discrimination, we unlock potential that would otherwise be lost,” she said. “Also, Corteva understands the importance of being good global citizens. Supplier diversity supports developing communities around the world. We all win when communities are strong and self-sufficient.”