The Agricultural Outlook Forum 2023 opened on Feb. 23, spotlighting climate-smart farming initiatives and expanding the U.S. biofuels industry.

In the symposium, U.S. Secretary of Agriculture Tom Vilsack highlighted both initiatives as a means for American farmers to “diversify” their income and boost profits.

“There’s a market value to that. So we have 141 projects that we’re funding and providing resources to de-risk our farmers from embracing climate-smart practices. And then linking them to markets that value those climate-smart practices and rewarding them,” Vilsack said during the event.

The United States Department of Agriculture (USDA) is investing more than $3 billion into the projects Vilsack mentioned. The agency claims the initiatives will offer “direct, meaningful benefits” to farmers, particularly those in small and underserved communities.

The USDA intends to spend $2.8 billion on the first 70 selected projects under the Partnerships for Climate-Smart Commodities program. Another $325 million is slotted for 71 additional projects.

Overall, the goal is to create end-to-end supply chain partnerships and specific market opportunities for climate-smart commodities.

During the conference, the secretary of agriculture touted the ambitious spending package as a means to create “additional profit opportunities” for farms of every size and scale, not just the proverbial big dogs.

“So instead of two or three ways to generate profit and income on a farm, we have five, or six, or seven different ways,” Vilsack said.

Much of the hard sell to adopt more “climate-friendly” methods of production is being done through monetary incentives.

The USDA is putting up funds to the tune of $19.5 billion under the Inflation Reduction Act to encourage the widespread adoption of land conservation practices and climate-smart production.

Some of these techniques include the use of cover crops and no-till farming.

Then there’s the country’s growing biofuels industry, which Vilsack says is another profit opportunity for American producers.

“We’re now investing in a bio-based economy that will give us the ability to create from agricultural waste, chemicals, fabrics, fibers,” the secretary said.

He further described the value of the diversity of commodities like soybeans, which could be turned into a product that “will repair roads more easily and less expensively.”

Using the rubber industry as an example of America’s dependence on foreign producers for a critical commodity, Vilsack said the U.S. biofuel industry could create products to fill domestic production gaps for essential imports.

And the timing is relevant since the global biofuel market is predicted to surpass $200 billion by 2030. The market topped $116 billion last year, of which the United States commanded the lion’s share.

Legislators are also buzzing about the expansion of America’s biofuel initiatives.

Senator Joni Ernst (R-Iowa) expressed support for America’s biofuels initiative during a Feb. 1 Congressional hearing. Ernst highlighted that Iowa might be the second largest agricultural producer state, but remains the leader in U.S. biofuel production.

Ernst said there’s also a need to widen the international reach of U.S. biofuels, noting that India is a promising new market opportunity.

During the Feb. 23 conference, Vilsack noted that America could produce renewable energy and fuel, making the nation energy independent. He also said this, in turn, can lower energy costs for farmers.

“Better soil health, purer water quality, and a stronger sense of community and connection.  That’s the future. That’s what we’re investing in now.”