Farm and Food: “You can only postpone reality for so long” | Agriculture
Worse, today’s collective inaction means that most of the damaging change for years to come is already burned in. In fact, any chance of minimizing the effects of climate change depends on keeping today’s rising temperatures at or below 1.5 ° C, according to delegates at the Glasgow climate summit last November, degrees Celsius increase by 2030.
To achieve this, the Glasgow scientists emphasized, radical and massive international efforts are required from now on.
American agriculture needs a similar plan to address the production challenges it faces in the long run and, more importantly, to limit the rising production risks it is now facing.
For example, you are a lender and a farmer or rancher comes to you for a standard 20 year mortgage on a $ 2 million real estate loan. Are you taking climate change into account in the cost and schedule of loan repayment? If not, why not as it will surely affect your repayment.
Equally important, if you want to include climate change in the repayment how would you do it? How do you rate the growing threat of widespread droughts, historic floods, warmer winters, hotter summers and, who knows, what else?
And remember, your shareholders and your customers are very invested in your response.
If you don’t have an answer, you too could be an Ag banker today, as most Ag lenders don’t have a work plan on how to mitigate climate change risk in massive short- and long-term lending – or more precisely, reveal the lifeblood of agriculture.