![]() In order to transition to a greener economy, farmers and ranchers must have access to affordable credit, which is contingent on a stable and healthy agricultural finance sector.įarming is an inherently risky undertaking, making it difficult for farmers and ranchers to find affordable credit without public policy intervention. Public policy must ensure that agricultural producers are able to adopt practices that will help their operations become more resilient to a changing climate. 3 To sustain and reinforce the stability of the agricultural sector, agricultural producers and policymakers must act now in anticipation of the climate crisis. 2Įven before the pandemic began sweeping across the country, extreme weather events, along with trade disruptions, had upturned the agriculture sector, prompting large payouts from the Commodity Credit Corporation to stabilize the industry. To that end, regulators should ensure that agricultural finance institutions are properly analyzing and disclosing their risks and that they are adjusting their capital reserves accordingly. If the agricultural finance sector is not adequately protected in the event of a climate-induced farm crisis, agricultural banks will be hit hard, affecting the long-term availability of credit to rural communities. Policymakers must ensure that agricultural lenders put in place proper safeguards to adapt to the increased risks posed by climate change. ![]() Get weekly insights on progressive policy.
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