Change Lending Practices to Reward Water Protection

Change Lending Practices to Reward Water Protection

Lenders are critical partners for farmers. The decisions that farmers make about the role of conservation on their farm are both supported and limited by the conditions of their loans. But studies show that few lenders understand the economic and environmental benefits of soil and water protection

Lenders have an opportunity to offer better rates for farmers that protect water and can better leverage federal money to support their transition to more sustainable agriculture. Changes in insurance and appraisal practices that reflect the long-term financial resilience of conservation practices. This is a win-win-win approach that supports farmers, allows banks to make money, and improves environmental protection.