In a significant stride for sustainable agriculture, Pivot Bio has made headlines by helping US farmers replace synthetic nitrogen on a large scale, thereby reducing on-farm emissions and fostering a new era of eco-conscious farming practices. The company’s groundbreaking microbe-based nitrogen-fixing product, Proven 40, has allowed growers to cut down on synthetic nitrogen usage by roughly 20%, a change that goes beyond mere environmental stewardship—it’s a financial game-changer for the agricultural community.
**The N-OVATOR Program: A Win-Win for Farmers and Corporates**
Pivot Bio’s N-OVATOR program, initially a pilot project, has evolved into a full-fledged initiative that has recently disbursed over $6 million to participating growers. This program is a collaborative effort with various food and beverage companies, ingredient suppliers, spirit producers, and grain buyers, all united in their quest to slash Scope 3 emissions—the indirect emissions that occur in a company’s value chain. These companies are purchasing offsets and insets as part of their environmental commitments, and Pivot Bio is at the forefront, facilitating this novel approach.
The program’s success is not just in its environmental impact but also in its financial incentives. In a conversation with AgFunderNews, Mitchell Craft, Pivot Bio’s sustainability executive, and corporate communications leader, explained that the program initially paid incentives of $2 per acre to collect data. In its latest iteration, the program has scaled up and shifted focus to insetting opportunities, which involve direct action in supply chains to alter emissions rather than purchasing offsets to compensate for them post-facto.
**Insetting vs. Offsetting: A Direct Approach to Emission Reduction**
The distinction between insetting and offsetting is crucial. Offsetting involves compensating for emissions by funding external projects that reduce greenhouse gases. In contrast, insetting is a direct intervention within a company’s own supply chain to reduce emissions at the source. Pivot Bio’s program has attracted seven prominent companies that pay a premium for corn grown with Proven 40, which uses less synthetic nitrogen. These premiums vary—some companies pay for the actual reduction in greenhouse gases, while others offer per-bushel or per-acre premiums.
The program’s structure ensures that growers who adopt environmentally friendly practices receive financial rewards, creating a tangible link between sustainable farming and economic benefits. For companies, the program provides detailed impact reports, allowing them to understand the exact benefits their investments are generating.
**The Unique Advantages of Targeting Nitrous Oxide**
Another aspect that sets the N-OVATOR program apart is its focus on nitrous oxide emissions. While much of the conversation around agricultural emissions has centered on carbon sequestration, Pivot Bio’s program is the first to target nitrous oxide at scale. Nitrous oxide accounts for a significant portion of agricultural emissions, and until now, there have been few scalable interventions to address it.
The program’s annual nature also offers a stark contrast to carbon sequestration efforts that often require long-term commitments. With Pivot Bio’s approach, the impact is immediate and permanent for each growing season. This not only simplifies the process for farmers but also provides a more straightforward value proposition for companies looking to reduce their environmental footprint.
**The Path Forward**
The implications of the N-OVATOR program are profound. It demonstrates a viable pathway for reducing reliance on synthetic fertilizers, which are integral to global food production but also a source of substantial emissions. The technology behind Proven 40 and the structure of the program could set a precedent for other agtech innovations aimed at reducing environmental impact while supporting farmer livelihoods.
As the agricultural sector grapples with the dual challenges of feeding a growing population and mitigating climate change, Pivot Bio’s initiative offers a glimpse into a future where these goals are not mutually exclusive. The success of the N-OVATOR program could inspire further investments in sustainable agriculture technologies, leading to a more resilient and environmentally conscious food system.