Land O’Lakes, a century-old dairy cooperative, continues to prioritize sustainability initiatives despite political and economic pressures.
In a time when responsible investing faces challenges from political and economic forces, Land O’Lakes, a dairy cooperative and Fortune 500 firm, stands firm in its commitment to sustainability. Under the leadership of CEO Beth Ford, Land O’Lakes has doubled down on its investments in sustainability-focused initiatives, including rural broadband access, reducing carbon footprints, and promoting environmental stewardship. Ford believes that these efforts not only make good business sense but also prioritize the needs of farmers, the food supply, and rural communities.
1: Deepening Investments in Sustainability
Land O’Lakes has deepened its investments in Truterra, a subsidiary that combines data-driven technology with sustainability practices. Truterra explores initiatives such as reducing methane emissions from animals, plastics recycling, and water usage reduction. In 2021, Truterra introduced a program that offered cash payments to farmers who sequestered carbon. This initiative paid out $4 million to farmers in its first year, and the payouts grew to $5 million in 2022. These investments not only make the land and farmers more resilient to climate change but also contribute to the overall sustainability of the food supply.
2: Advocating for Science and Technology
Beth Ford has become a fierce advocate for science and technology, both within the company and in the regions that produce the nation’s food. Land O’Lakes has been recognized by the US Environmental Protection Agency for its on-farm sustainability initiatives, and the company has received funding from the EPA and the Hershey Company for member farms in Pennsylvania. Ford believes that investing in science and technology is crucial to protecting the food supply and supporting the farmers who contribute to it.
3: From Butter to Ag-Tech
Drawing inspiration from her mother, Ford has embraced resilience, humility, and a strong work ethic throughout her life and career. She has held various roles in different industries, including Pepsi, Mobil, and Scholastic. At Land O’Lakes, Ford has sought to position the company as a leader not only in butter production but also in agricultural technology. The company launched the American Connection Project coalition, advocating for investment in high-speed internet infrastructure in rural communities. This coalition, with over 175 members, played a role in the passage of the bipartisan infrastructure bill.
4: Weathering Volatility
In the agriculture industry, change is constant, and incorporating sustainable practices can be challenging. ESG practices have faced opposition from shareholders and politicians, particularly in conservative-led states. Ford’s efforts carry risks for herself, the company, and the co-op members. To be successful, all stakeholders must be aligned, from farmers to retailers and consumers. The discussion around sustainability also raises questions about costs and who should bear them. Despite the challenges, there is great potential for progress and accomplishment in working towards sustainability goals.
5: Investing in the Earth and in People
Land O’Lakes’ investments in sustainability have garnered support from farmers like Kelly Garrett, who champion regenerative farming practices. Garrett sees the financial backing and security provided by Land O’Lakes as crucial in navigating the unregulated carbon market. The convergence of high-yield and sustainable farming practices is becoming increasingly important as farmers strive to work in harmony with nature. Land O’Lakes and Ford remain active in advocating for agriculture research funding and immigration reform, recognizing the interconnected nature of the food system.
Conclusion: Beth Ford’s leadership at Land O’Lakes demonstrates a commitment to sustainability in the face of political and economic pressures. By prioritizing investments in technology, environmental stewardship, and rural communities, Land O’Lakes sets an example for responsible investing. Ford’s advocacy for science and technology, as well as her dedication to the well-being of farmers and the food supply, highlights the importance of collaboration and innovation in creating a sustainable future for all.
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