How is every agricultural entrepreneur able to improve the quality of the living environment itself, without doing injustice to farming as an economic activity? This requires strategic choices.
This is part 3 of a four-part series. Gerard Ros . previously wrote in part 1 that a future agricultural business needs a broader focus than just producing food. In part 2 he has described a number of relevant preconditions for this.
When I think of the future farmer and his business, I see a person who is proud of his business. Because he contributes to a better world. He offers inspiration and is inspired by stories from his environment. He has defined a set of strategic goals to which his company contributes. He continuously monitors how his company contributes to the production of healthy food, how his company maintains and improves the quality of the living environment.
He is open to continuous improvement in efficiency and he strives for sustainable agriculture for future generations. The more farmers I speak to, the more I discover that they are driven by a strong commitment to the quality of the soil as well as the quality of the area in which they live. They feel responsible for producing healthy food. That is what drives farmers. And in my view, this drive, as well as their craftsmanship, is crucial to make the transition to sustainable and sustainable agriculture.
Production in balance with the environment
Together we have also seen that the agricultural system has been transformed in the past 50 years into a smoothly running and efficient machine, in which food production is more important than the quality of the living environment. In the future company, this is different. In the future, agricultural production will be in balance with the environment.
This is reflected in 5 basic principles that guide the strategic and operational management of the company. These are: 1. the natural capital of the soil is protected and maximized for agriculture, 2. the cycles of carbon, water and nutrients are closed as much as possible, 3. food production, the environment and health reinforce each other, 4. the actual impact on the environment is reduced valorised, and 5. the company can continue to grow within the socio-economic landscape.
What does this mean in concrete terms for the agricultural business?
Connection to natural soil capital
In order for a company to be able to respond effectively to the existing tasks, it is first of all important to know the soil and the processes in it and to quantify them. The soil largely determines the yield potential of the plot and it also controls the efficient use of resources. In addition to the soil, the company is also connected to the environment.
The resilience and sensitivity of the environment therefore determines both the extent to which the agricultural potential can be realized and the measures required for this. It is therefore desirable that each company develops its own plan, taking into account the chosen management in relation to the agricultural goals as well as the quality of the environment.
To achieve this, it is important that the buffering capacity of the soil is utilized and increased. A soil with a high buffering capacity can slow down the exchange of water between soil and surface water. A large buffering capacity also ensures that there is less drought stress in periods of water shortage. When there is a lot of precipitation, there is also less risk of flooding.
And directly linked to this, losses of nutrients and crop protection products are lower with a high buffer capacity. And certainly if the fertilization is also geared to the variation in soil quality. To increase the buffering capacity of the soil, there are the following rules of thumb:
Closing cycles
Losses of carbon, nutrients, water and crop protection products are inevitable. Management can be designed in such a way that surpluses (there is too much supply) or shortages (there is too little supply) are prevented. Both situations are agriculturally undesirable.
On the other hand, there are social tasks that require a surplus or a deficit. Consider, for example, the desire to store more carbon in the soil (from a climate perspective), to raise groundwater levels (to reduce dehydration), to use more solid manure (for biodiversity), to mine soils (for surface water quality ). Closing cycles therefore requires specific implementation in relation to the goals to be achieved.
Because we are talking about an agricultural business here, the continuation of the agricultural function has priority. This requires correct coordination of fertilization (supply of nutrients), level management and irrigation (supply of water) based on the plot characteristics of the company, as well as the desired ecosystem services. Any deviation from Good Agricultural Practice (i.e. the pursuit of balance) can be regarded as an investment in an ecosystem service, whereby the company can make a choice based on interest or existing tasks in the region.
Collaborate with sectors
What does this mean in concrete terms? First of all, that crops and soils are not fertilized unnecessarily, but that an agriculturally optimal target condition is strived for. The goal is balanced fertilization, whereby the crop does not receive more fertilizer than is necessary. This means that arable farmers and livestock farmers work together to ensure that the right fertilizer is available at the right time.
This means that smart application techniques are used to prevent ammonia or nitrous oxide losses (for example, deep injection or water in the manure). This also means that nitrogen binders are used where possible to enrich the soil, in order to reduce external nitrogen supply. This also means that organic residual flows and animal manure are processed in such a way that they can be used efficiently for soil improvement (a lot of organic matter, few nutrients) or fertilization (many nutrients and little organic matter).
If surpluses or shortages are desired due to the quality of the living environment, then there are opportunities within the company to shape management in such a way that the desired impact is achieved on the right plot. In addition, measures are needed to prevent negative effects on other goals. This shows that the principle of 'closing cycles' must be made concrete at different scale levels in order to actually achieve impact.
Strengthen relationships between food production, environment and health
An agricultural company produces food for the regional and global market. Recent outbreaks of diseases in animals and crops and the associated trade barriers show that it is important to produce sufficient and healthy food in our own country. This means that companies must show more and more transparency in their cultivation methods. And be accountable for the resources used and the impact on the living environment. There are still major challenges in this area.
In order to be able to focus on maximizing production, minimizing environmental impact and maximizing health gain, a priori insight is needed into the impact of agricultural practices on the underlying relationships. There is still a lot that is unclear about how you can strengthen the synergy between agriculture and health as an entrepreneur. We know, for example, that soil management and fertilization result in sufficient micronutrients and vitamins in arable and field vegetable crops, which in turn promote human and animal health. Ditto for desired protein levels in grassland and potatoes and sugar levels in sugar beets. A generic approach to a stronger relationship between food production and health is lacking.
Characteristics of individual plots
The relationship with the environment has received more attention in recent years, in particular in relation to nitrogen (to the air and the water system) and phosphate. This has been worked out very concretely for dairy farming in the system of the KringloopWijzer. But here too there are still major questions about the effectiveness of measures on the specific farm, taking into account the characteristics of the individual plots.
Nevertheless, very concrete steps can already be taken here, largely based on expert knowledge and the craftsmanship of farmers. The BedrijfsBodemWaterPlan, developed in the province of Brabant, is a good example of this. More generally, it also applies that strengthening the natural capacity of the soil as well as the use of biological/natural pest control yields benefits for the environment and health. For the future, it is important that critical performance indicators aimed specifically at this area are developed to further substantiate the relationships between agriculture, the environment and health.
Farming on drought-sensitive sandy soils
What does this mean, for example, for drought-sensitive sandy soils in the Netherlands? Farmers who have a business here must think carefully about the cropping plan, soil management, choice of fertilizer and the use of irrigation in the light of the challenges presented. It is important to alternate shallow and deep-rooted crops, in order to build up organic matter in the soil and reduce nitrate leaching.
Nitrogen binders can be used to capture nitrogen from the air and thus enrich the soil, and catch crops can reabsorb part of the leached nitrogen and improve soil quality. Fertilizers that are sensitive to leaching are undesirable in early spring. The use of flower-rich field margins stimulates biodiversity, prevents surface run-off and drift of fertilizers and crop protection products. To prevent damage to the soil structure, tramlines and tires with air pressure are desirable, as is a well-considered choice about the time and sequence of soil treatments. Sufficient supply of slurry is important to feed soil life and to build up extra carbon.
In peat meadow areas where high P leaching hinders good ecological water quality of the surface water, it is important to focus as much as possible on measures that increase agricultural productivity, limit emissions and improve the quality of the ditch. High productivity ensures that the charged agricultural soil is mined and improves the quality of the living environment in the long term.
This also means stricter standards for phosphate fertilization (PAL values above 50 are undesirable) and broader standards for nitrogen (to increase crop yield). Animal manure is applied in such a way that the P-availability index is taken into account: this increases the utilization and protects the soil quality for the future.
Nitrogen fertilizer is stimulated, because it allows flexible adjustments during the season. Broad use of buffer strips ensures phosphate retention in the agricultural soil and stimulates connectivity within the landscape and thus biodiversity. Smart drainage systems are used to keep the groundwater in the plot as high as possible and thus inhibit peat degradation (positive for climate and habitability).
Ditches are ecologically maintained in order to promote biodiversity in the ditch. In a number of hydrologically isolated subareas, the water level is raised to stimulate meadow birds and the natural buffer capacity of the soil is used to prevent rewetting (good for meadow birds) from releasing extra phosphate that has a negative effect on the water ecology.
Valorisation of environmental impact
How can you, as a company, actually show what kind of impact you are realizing? Current discussions in the media show that a large proportion of Dutch citizens have very little insight into what happens on a farm and how this contributes to the quality of the living environment. There are still enormous opportunities here to strengthen the relationship with the citizen as a company, as well as the relevance of clean production for a healthy diet and the quality of the living environment.
At the same time, the number of certification systems is increasing, with which companies are measured against a yardstick to monitor their social impact. The recent emergence of Herenboerderijen and all kinds of citizen initiatives shows me that a social innovation is emerging here, in which citizens are increasingly involved in local and regional food production.
It is still unclear to me to what extent this trend will continue and to what extent regional economies will actually emerge. Because I move far beyond my own field in this area, it is difficult to properly interpret these socio-economic trends. What I do see is that companies are increasingly challenged to visualize and substantiate their impact on their environment as well as their contribution to the economy and public health. This requires a high degree of openness and transparency ('licence to produce') and is even a requirement for realizing new revenue models. In my view, this must therefore take shape across the entire spectrum, both agriculturally and environmentally. To ensure that a farmer actually remains a farmer.
A sustainable company
I can be very brief here: farming is an economic activity. This also means that the farmer is an entrepreneur who supplies a product that consumers can live on. As far as I know, there are no farmers who consciously choose to damage the quality of the living environment. However, the financial margins are often so small that investments in soil quality or environmental quality almost always damage the sustainability of the company.
At the same time, there is also perspective here. Because as soon as consumers learn to value food production again and take the ecological consequences of food production into account in the price of food, there will also be financial scope for investments and innovations that reduce the ecological footprint. That offers perspective, for both farmers and citizens.
Looking ahead
After many discussions with farmers, those entering the field as well as chain parties and policymakers, I (still) believe in the power and innovation of agricultural companies to realize the necessary transition towards a sustainable agricultural system. In 2020, many entrepreneurs are struggling about the future of their company. Rules are often not integral and are becoming stricter, margins are narrowing and the predominant image in the press is negative.
The working method outlined here puts farming back in the center and from there, together with others, actively contribute to a sustainable living environment. This inspires and at the same time offers a structure to financially support the necessary transition. Many local initiatives show that this is possible. I look forward with great anticipation to collaboration with regional parties to actually make the transition concrete for the various regions in the Netherlands.
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