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Innovative incentive models empower soy farmers to eliminate deforestation and land conversion

Innovative incentive models empower soy farmers to eliminate deforestation and land conversion

Monday, 4 November 2024 | By Climate Champions

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Context: Soy production, primarily used for animal feed in livestock industries and biofuel production, has driven 8.2 million hectares of deforestation globally between 2001 and 2015, with 97% occurring in South America. The expansion of soy farming in the Brazilian Cerrado has led to significant biodiversity loss and carbon emissions, making it crucial to incentivise zero-deforestation practices for sustainable agricultural development.

Partners: Six Agribusinesses via WBCSD’s Soft Commodities Forum (SCF): ADM, Bunge, Cargill, COFCO International, Louis Dreyfus Company and Viterra; Downstream Actors through the Consumer Goods Forum’s Forest Positive Coalition; Bayer collaborating with Embrapa on the ProCarbono Commodities Program.

Duration: Ongoing

Location: Cerrado, Brazil

Impact Achieved

  • Initial investment of USD $7.2 million by SCF members to address soy-driven deforestation and conversion.

  • Established an incentives model providing solutions to soy producers to halt deforestation and conversion in high-risk municipalities.

  • Engaged farmers in sustainable land management practices, promoting zero-deforestation commitments and sustainable soy production. Currently enrolled more than 223 farmers representing more than 1.6 Mha of farmland and 300kha native vegetation.

  • Quantified GHG emissions removals with the potential to abate scope 3 emissions along the soy value chain.

Description:

The Farmer First Clusters Initiative is a collaborative effort to eliminate deforestation and land conversion driven by soy production in the Brazilian Cerrado. With an initial investment of USD $7.2 million, SCF members and partners aim to develop a sustainable financial model that incentivizes soy producers to adopt zero-deforestation practices and restore degraded lands. The initiative focuses on six key solutions: payments for surplus legal reserves, technical assistance for sustainable production and Forest Code compliance, restoration of degraded areas, integrated farming systems (livestock, agriculture, and forestry), expansion of agriculture over pastureland, and green finance mechanisms. These efforts contribute to broader climate-smart agricultural practices, reducing greenhouse gas emissions, preserving native vegetation, and improving livelihoods for local farmers and communities.

More info here.

The Food Systems Call to Action is a global initiative that urges non-state actors and governments to take immediate steps to transform food systems by 2030. It highlights the urgent need for resilient, sustainable, and equitable approaches that support food security, protect nature, and address climate change. Through targeted actions and principles, the Call to Action emphasizes collaboration, innovation, and inclusivity—ensuring that farmers, frontline workers, Indigenous communities, and other key players are at the forefront of decision-making and implementation.

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