Banking on Soil Health: Farmer interest in transition loan products

Transition loan products – modeled after organic transition loans – can help farmers navigate the upfront costs and financial uncertainties of implementing practices like cover cropping.

This report shows strong farmer interest in such products, especially when paired with incentives like interest rate reductions or per-acre cost-share. Nearly 90% of surveyed farmers recognized the long-term profitability of soil health practices.

These findings make a strong case for lenders to invest in innovative financing tools that not only strengthen farm profitability and soil conservation, but also reduce lending risk, aligning economic and environmental goals.