Karl Plume

(Reuters) – U.S. Department of Agriculture has announced that it will invest $1 million in pilot projects to promote agriculture, ranching, forestry, and other practices that lower greenhouse gas emission or store and transport climate-warming carbon.

Later Monday will see the announcement by the agency of Partnerships for Climate Smart Products.

Funds from USDA’s Commodity Credit Corporation will be used to fund the program. This corporation provides $30 billion per year from the U.S Treasury. It helps stabilize farm product prices and supports farmer income.

This investment marks the latest Biden Administration initiative to combat climate change. It aims to reduce greenhouse gas emissions from the agricultural sector by half by 2030, and to put the United States on the path of net zero emissions by 2050.

Initiatives that reduce or capture methane from dairy farms, or programs that expand the use and utilization of practices that absorb more climate-warming carbon in the atmosphere and put it into the soil are examples of qualified projects.

Vilsack stated that such expansions could increase the U.S. farm product’s value as more food exporters and food companies push for decarbonization of their supply chains.

He told Reuters that he believes there’s an opportunity as Americans demand better quality food, and the US export market is a growing one.

Climate-focused projects have often struggled with scaling up, as the cost of doing so is higher than the return.

Vilsack explained that “this program…can essentially reduce risk for farmers so they can understand how it works and get the positive outcomes.”

Qualified public and private organizations will receive funding, including those from the state, local, or tribal governments.

Grant applications for grants between $5 million and $100 million must be submitted by April 8th. Smaller grants can also be applied until May 27th.