Sustainable farming practises are not just good for the environment, they are good for the long-term financial sustainability of any agricultural business.
Farmers with good environmental credentials are more resilient in the face of events like drought and pests and are more likely to be profitable in the long-term.
Measuring the relationship between environmental and financial performance is known as natural capital accounting. It can be complex and difficult to measure precisely.
Accurate models are needed to inform farmers about where they will get the greatest financial return on investments in sustainability, and to assist banks in measuring risks and making lending decisions.
This Food Agility project focuses on the Australian viticulture industry because it is known for great farm management practices. This project will build on almost ten years of industry sustainability data collected by AWRI.
The team will analyse the data and work with Australian wine-grape growers to identify links between environmentally sustainable practices and long-term financial performance.
This will establish metrics that enable growers to benchmark their performance and support their ongoing environmental and financial sustainability. The metrics will also assist banks use to calculate risk and reward sustainable producers with more favourable lending terms.
Future projects will look to expand the methodology to different types of agricultural production.
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