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How industrial agriculture is disturbing the nitrogen cycle and undermining conditions for life on Earth

Six of our nine planetary boundaries have now been crossed – and industrial agriculture are the main culprit. That is what a team of scientists under Johan Rockström reported in an article published in September..

First, a reminder: planetary boundaries are thresholds of disturbance beyond which our Earth’s system are put on an uncontrollable and irreversible path that undermines the very conditions for life. This notion of overstepping boundaries is clear in regard to the best-known limit of them all: that of climate change. In order to cap global warming at 1.5°C above pre-industrial levels, and prevent it from escalating beyond bearable conditions (even if this is not enough to stop climate disruption already underway), we need to keep the proportion of atmospheric CO₂ below a certain limit. And to achieve this, we need to reach carbon neutrality, quickly.

Regarding the climate, it is easy to see how such a global limit is relevant: the carbon cycle is open to the whole planet and CO₂ emitted (or captured) anywhere on Earth immediately affects the world’s atmosphere in its entirety. Yet in the case of the planetary boundary for nitrogen, exceeding the threshold is different, as it is the industrialisation of agriculture that is largely, and more complexly, responsible for breaking the limit.

But how can agriculture affect the nitrogen cycle? How has it managed to reach a breaking point? To feed the world, isn’t intensive agriculture best? Let’s take stock of the situation.

The natural nitrogen cycle
First, we need to understand the natural cycle of carbon and nitrogen – two of the main elements that form living matter. We can observe this cycle in forests, for example. To function, forests rely on a balance between plants growth – a process that turns mineral (inorganic) forms of carbon and nitrogen into biomass (organic) – and animals, fungi and micro-organisms decomposing this biomass, a process that remineralises it.

But whereas the inorganic form of carbon (CO₂) is present in the atmosphere, distributed evenly worldwide and absorbed by plants via their leaves, nitrogen is remineralised in the soil and absorbed by plant roots. So, the boundaries of the nitrogen cycle have to remain local: any loss of nitrogen brings about a risk of soil depletion, which jeopardises continued plant growth.

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The Investment Opportunities of Industrial Hemp

Video: The Investment Opportunities of Industrial Hemp

The fledgling U.S. hemp industry is decades behind countries like Canada, France and China, but according to impact investor and this week’s podcast guest, Pierre Berard, it could flourish into a $2.2 billion industry by 2030 and create thousands of jobs.

To reach its potential, what the hemp industry needs most right now, Berard said, is capital investment.

Last month, Berard published a report titled “Seeing the U.S. Industrial Hemp Opportunity — A Pioneering Venture for Investors and Corporations Driven by Environmental, Social and Financial Concerns” in which he lays out the case for investment.

It’s as if Berard, with this report, is waving a giant flag, trying to attract the eyes of investors, saying, “Look over here. Look at all this opportunity.”

Berard likens the burgeoning American hemp industry to a developing country.

“There is no capital. People don’t want to finance. This is too risky. And I was like, OK, this sounds like something for me,” he said.

As an impact investor who manages funds specializing in agro-processing companies, Berard now has his sights set on the U.S. hemp industry, which he believes has great economic value as well as social and environmental benefits.

He spent many years developing investment in the agriculture infrastructure of developing countries in Latin America and Africa, and said the hemp industry feels similar.

“It is very nascent and it is a very fragmented sector. You have pioneers and trailblazers inventing or reinventing the field after 80 years of prohibition,” he said. “So I feel very familiar with this context.”

On this week’s hemp podcast, Berard talks about the report and the opportunities available to investors in the feed, fiber and food sectors of the hemp industry.

Building an industry around an agricultural commodity takes time, he said. According to the report, “The soybean industry took about 50 years to become firmly established, from the first USDA imports in 1898 to the U.S. being the top worldwide producer in the 1950s.”

Berard has a plan to accelerate the growth of the hemp industry and sees a four-pillar approach to attract investment.

First, he said, the foundation of the industry is the relationship between farmers and processors at the local level.

Second, he said the industry needs what he calls a “federating body” that will represent it, foster markets and innovations, and reduce risk for its members and investors.

The third pillar is “collaboration with corporations that aim to secure or diversify their supply chains with sustainable products and enhance their ESG credentials. This will be key to funding the industry and creating markets,” he said.

The fourth pillar is investment. Lots of it. Over $1.6 billion over seven years. This money will come from government, corporations, individual investors, and philanthropic donors.

The 75-page report goes into detail about the hemp industry, its environmental and social impact, and the opportunities available to investors.

Read the report here: Seeing the U.S. Industrial Hemp Opportunity

Also on this episode, we check in with hemp and bison farmer Herb Grove from Brush Mountain Bison in Centre County, PA, where he grew 50 acres of hemp grain. We’ll hear about harvest and dry down and crushing the seed for oil and cake.