Agroforestry: The Future of Farming and the Economy of Trees
In an era where climate change and sustainable agriculture are at the forefront of global discussions, an innovative approach is making waves in the farming community. Agroforestry, the practice of integrating trees and shrubs into crop and animal farming systems, is being championed by Propagate, a startup founded by Ethan Steinberg, Jeremy Kaufman, and Harry Greene in 2017. This method not only promises to generate extra revenue for farmers but also plays a crucial role in carbon sequestration, water management, and soil health improvement.
The Path to Greener Pastures
Despite the clear environmental and economic benefits, agroforestry is still underutilized, occupying less than 1.5% of US farmland. Steinberg identifies three main obstacles: lack of awareness, technical know-how, and capital. To tackle these hurdles, Propagate has developed the Overyield IT platform, which aids farmers in understanding the logistics of tree planting on their land. This tool calculates costs, labor requirements, and land suitability, addressing the first barrier of awareness.
For the second barrier, Propagate’s team supplies the tree stock and the expertise necessary for on-the-ground implementation. Finally, overcoming the lack of capital, Propagate provides financing options through Agroforestry Partners or public funding from USDA’s Climate Smart Commodities initiative.
Steinberg points out that the investment in tree crops like chestnuts involves a “J-curve,” where costs accumulate for up to a decade before reaching a breakeven point. This financial model can be daunting for many farmers, particularly when considering that the average farmer in the US is aging and may not have a succession plan in place. However, the interest in regenerative agriculture is growing among younger farmers, who are more inclined towards long-term sustainable practices.
Projects Rooted in Tradition and Innovation
The type of agroforestry projects Propagate is involved in can vary. Some integrate animals in what’s known as Silvopasture, but Propagate primarily focuses on bringing the forest to the field. This practice is not new; small farms in developing countries have been intercropping for ages with crops like cocoa or coffee. Propagate aims to adapt these traditional methods to larger-scale farms in regions like New York and the Midwest.
The company’s cofounders, who have been ideating since their college days, are now seeing the fruits of their labor. Propagate recently launched a 130-acre pilot project at Hill Farms in Ohio, which has since expanded to about 1,800 acres, making it one of the largest chestnut operations in the US. This project not only focuses on chestnut and hay production but also incorporates ecological elements such as riparian buffers and biodiversity strips from the outset.
The Environmental and Economic Ripple Effect
Beyond the direct revenue from tree crops, there are additional financial incentives tied to environmental benefits. For example, carbon credits are a potential source of income, albeit not sufficient to cover implementation costs entirely. Agroforestry systems can sequester roughly two tons of carbon per acre per year, and with current market prices for carbon credits hovering around $30-40 per ton, this can add up. Moreover, the improved soil health can lead to better nutrient retention, reducing the need for fertilizers and potentially saving money for the farmer.
While the initial startup costs for establishing an agroforestry system can be significant, the internal rate of return for chestnut production is estimated at 15%-25%. This figure, coupled with the environmental benefits and the potential for carbon credits and improved yields, presents a compelling case for the adoption of agroforestry practices.
Propagate’s mission to integrate trees into farming systems is not just about planting seeds; it’s about planting ideas for a sustainable future in agriculture. By providing the necessary tools, knowledge, and financial support, Propagate is helping to cultivate a greener, more resilient, and economically viable agricultural landscape. The roots of change are spreading, and they’re beginning to bear fruit in the form of increased awareness, technical adoption, and investment in the economy of trees.