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Multi-Year Purchase Agreements Can Advance Sustainable Agriculture

Multi-year purchase agreements can help to advance adoption of sustainable agriculture practices, says a feature on Conservation Finance Network. For example, Pipeline Foods’ Farm Profit Program enrolls growers in a 10-year agreement to purchase their organic crops. The assurance offered by a long-term agreement can help farmers weather the transitional period to organic production. Some organic producers value long-term contracts because they alleviate the need for marketing crops every year, and having a long-term agreement can motivate banks to lend. The feature points out that long-term contracts can also support expensive conservation measures, or practices that take a long time to pay off.