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The Benefits of Farm Diversification

The Benefits of Farm Diversification

Judy Morgan |

The concept of farm diversification has been gaining traction in the farming world, and for good reason. For decades, most US farming has evolved into large, simplified ecosystems designed to efficiently produce one or a few crops or livestock. This farming practice has resulted in less biodiversity, more pollution, lower quality products, and nutrient-starved soil. Recent studies show that there are several benefits from farm diversification, and farms across the world have implemented strategies that can create positive health, social and environmental outcomes. These strategies are critical for thriving farms to create a sustainable future for our world.

What is the Green Revolution, and why has it posed a risk to the environment?
The “Green Revolution” that started in the 1940’s is considered a significant achievement in agricultural advancement. High-yielding crop varieties, especially wheat, were started in Mexico through the collaborative efforts of the Rockefeller Foundation and the Mexican government. The Green Revolution gained global attention and momentum in the 1960’s as new technologies and agricultural practices dramatically increased food production, particularly in developing countries. The positive impact of these practices included increased food availability, reduced food prices, and economic development for many countries.

Unfortunately, these practices resulted in several negative impacts and criticisms. This simplified cropping system of monocrops prioritized high yields over food safety, and dietary diversity. The widespread adoption of synthetic fertilizers and pesticides to enhance crop growth and pest control led to environmental degradation, including soil and water pollution, biodiversity loss, and other environmental problems. The Green Revolution primarily benefited large landowners and wealthier farmers, further exacerbating economic inequalities. The reliance on fertilizers and pesticides made farmers dependent on external suppliers, potentially making them vulnerable to price fluctuations. The emphasis on high-yielding varieties and intensive farming practices led to the decline of traditional farming systems and crop diversity.

Before we continue, a few definitions….
Biodiversity is the variety of all life on earth – animals, plants, fungi and microorganisms like bacteria. Together, they provide us with everything necessary for survival, including fresh water, clean air, food and medicines. While the earth has always experienced changes and extinctions, today they are occurring at an alarming rate. Major direct threats to biodiversity include habitat loss and fragmentation, unsustainable resource use, invasive species, pollution and global climate change.

Farm diversification is a strategic approach taken by many farmers to ensure the economic
viability and sustainability of their farming operations. Strategies such as managing multiple species, incorporating areas of non-crop vegetation, or conserving soil and/or water have been posed as ways of countering the negative environmental effects of simplified agriculture.

Regenerative agriculture is a holistic approach to farming that focuses on restoring and
enhancing the health of the soil, plants, animals, and the environment. The goal is to revitalize the natural processes that have been depleted over time through conventional agricultural practices.

Regenerative agriculture and farm diversification are two distinct but complementary approaches to farming that offer numerous benefits for farmers and the environment. Farm diversity focuses on the variety of crops and/or livestock on the farm, while regenerative agriculture is a broader, holistic approach that aims to restore and enhance ecosystem health, including soil health, biodiversity and carbon sequestration. These processes are gaining traction on both sides of the political aisle. The challenge is creating a specific definition for legislative purposes. The definition and its scope need to be broad enough to get people on board but narrow enough so that it means something. These practices require significant capital investment, and states like California are looking to provide funding to assist farmers that practice regenerative agriculture.

What are examples of farm diversification strategies?

  • Agritourism – offering farm tours, pick-your-own activities, farm stays, or educational workshops
  • Value-added products – examples include jams, honey, baked goods or crafts
  • Renewable energy generation including solar panels, wind turbines, and biomass systems (heating system using organic matter to produce heat or electricity)
  • Crop diversification and rotation involves increasing the number of species present in a growing area. It also includes crop rotation and cover crops. Diverse cropping systems create habitats for beneficial insects, naturally enriches the soil, and provides income streams throughout growing seasons, creating a safety net against crop failure.
  • Non-crop plantings – non-food crops like ornamental plants and flowers
  • Livestock integration and diversification – incorporating different types of livestock
    and/or incorporating them into crop production.

A 2024 Michigan State University study looked at five strategies and their environmental
outcomes. These strategies were a mix of farm diversification and regenerative agriculture
strategies and included:

  • Livestock inclusion and diversification including managed mammals, fowl, bees and fish
  • Crop diversification
  • Soil conservation and fertility management (i.e. compost application)
  • Water conversation (i.e. contour farming)
  • Non-crop plantings (i.e. hedges and flower strips)

The researchers found several positive outcomes because of these diversification strategies
including:

  • Increased biodiversity
  • Increased ecosystem services are the benefits that humans obtain from natural
    ecosystems. Benefits can be tangible like food and water, or intangible like recreation and spiritual enrichment.
  • Reduced externalities to minimize the unintended negative impacts of agricultural
    practices on the environment and society
  • Increased human well-being
  • Food security and an increase in the nutritional value of food
  • Crop yield was minimally affected.

The more diversification measures farms employed, the more benefits accrued. Livestock
diversification and soil conservation were the two strategies that appeared to consistently elicit multiple positive outcomes. The study revealed a few trade-offs. For example, soil conservation practices led to gains in biodiversity practices, but potential, small yield losses.

What are the challenges of farm diversification?
Farmers who decide to transition to farm diversification practices have several challenges to overcome. These include:

  • Resource constraints: Diversification can be demanding and require significant time and effort. Farms may lack the necessary infrastructure to support new enterprises, resulting in new capital investments.
  • Financial risks: Diversification carries financial risk and may not immediately generate profits. Finding markets for new products or services require market research to ensure profits. Volatility in market prices is nothing new to farmers, and it is no different with a diversified farm.
  • Knowledge and skill gaps: Farmers may need to acquire new skills and knowledge
    related to production and management. Hiring and training specialized staff may also be necessary.
  • Regulatory and policy hurdles: Stringent safety regulations and various trade agreements exacerbate “big ag” concentration in global food systems. Current policies, particularly the US Farm Bill, lock in simplified, conventional farming rather than assisting farmers who want to make the change or create a start-up farm.
  • Behavioral barriers: Farmers may be reluctant to deviate from established practices, especially if there is perceived additional effort or risk. “The way we’ve always done it” is a common social norm.

Despite the challenges, farm diversification is a promising solution to bring about more
sustainable and nutritious food production because it offers a pathway to farms for environmental sustainability, human well-being and food security. Diverse farming systems offer better resilience against unpredictable weather patterns and create a buffer against environmental challenges. Since the days of the Green Revolution, profits seem to have taken priority over food safety and security. This is a lose-lose situation! A new paradigm is needed that focuses on food security and nutrition while minimizing negative environmental, health and social impacts. Successful implementation requires careful planning, addressing potential resource constraints, market challenges, knowledge gaps, and navigating regulatory hurdles and overcoming attitudinal barriers. We applaud the farmers who have decided to take this leap!