Incentivizing Conservation Adoption Through Food Quality Marketplaces

Croatan Institute, in collaboration with Nourishn, is leading a USDA NRCS Conservation Innovation Grant from March 2022-March 2025 to develop key insights on incentivizing conservation adoption through food quality marketplaces. By working closely with 25 regenerative producers; soil health, crop nutrient, and biodiversity measurement and research organizations; value chain businesses; and capital providers, we aim to: 

  • identify attributes of conservation, food quality, and socio-economic characteristics of farms that can be associated with agricultural food products in the marketplace
  • help facilitate, learn from, and give recommendations on market transactions that reflect the nutritional, environmental, and social benefits of regeneratively-grown farm products, leveraging innovative data
  • attract traditional finance to conservation-oriented agriculture operations and products, across asset classes 

The goal is to support place-based partners to: 

  • achieve measurable conservation impact in their current operations  
  • incorporate the learnings and insights from the development of innovative nutritional and biodiversity data and attributes of farm products in reporting back to USDA on current and prospective future market dynamics that can support conservation farming through markets in food quality 
  • Identify financial mechanisms that can unlock more of the much-needed financing to support the transition to regenerative agricultural practices 

Progress & Learnings to Date

The team has conducted research with consumers, producers, and investors on business models that center conservation and health outcomes, which have resulted in the following preliminary findings: 

Cross-cutting observations: Overall, market transactions reflect perceptions that specific nutritional qualities vary based on farming practices and that natural farming practices produce foods with more positive health qualities (regardless of farming practices). Specific nutritional qualities linked to conservation farming currently drive relatively few transactions. There are challenges related to availability and measurement of data. 

Farm practices for Food Quality and Market Benefits: Our research analyzed the connections between certain farming practices and outcomes that are often under-valued, like increased nutrition in foods, local food system resiliency to supply disruptions, water quality, community and cultural values, carbon sequestration, regional landscape resiliency to shocks like food or drought or fires, and more. 

Consumer incentives: Approximately, 30% of adults in the United States purchase organic foods, and 25% of adults make up a demographic called LOHAS (Lifestyles of Health and Sustainability) that specifically seeks out healthy and sustainable products. Primary incentives are personal health and reputation. This consumer segment seems interested in specific health qualities of foods but often lacks credible sources of information for distinguishing between competing products and marketing claims.  

Many natural foods CPG companies would like to be able to market other nutritional qualities around which clear science is still emerging, but lack of regulatory clarity and government-validated data seem to constrain them in making those claims. 

While grocery retailers play a particularly powerful role in educating consumers at point of purchase, they tend to lack marketable information on nutritional qualities, and they usually follow trends rather than setting them.  

Producer incentives: Farmers choose conservation practices for a wide range of reasons including: personal health mission or crisis, cultural and community-building determinants, environmental core values, future potential of regenerative food markets, differentiation in the marketplace (resulting in price premiums or large market share), personal values, and/or alignment with larger institution. 

Get Involved

Bionutrient Food Association Conference

Join us on July 23, 2024 as Croatan Institute shares insights during the 11th Soil and Nutrition Conference hosted by the Bionutrient Food Association.

Merge Impact Marketplace

Discover transparent, verified, regenerative, organic products on Merge Impact’s MarketPlace, where farmers and buyers come together to create a more sustainable future for agriculture and our planet. 

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