Report on Climate-Smart Agriculture Opportunities and Challenges Issued

Feb 19, 2025

By Steve Koppes

A new report issued by the Purdue Applied Research Institute's Digital Innovation in Agri-Food Systems Laboratory, the research arm of DIAL Ventures, offers multiple strategies to help the agrifood sector navigate climate change-related challenges throughout the agricultural value chain.

"The findings of the Climate-Smart Agrifood Opportunities report provide a road map for stakeholders across the agrifood sector to identify and act on opportunities for sustainability," said DIAL Ventures research manager Lourival Monaco, research assistant professor in agricultural economics. "By addressing the challenges collaboratively, the sector can build resilience and adapt to the evolving demands of a climate-smart future."

To improve climate resilience in agriculture, the report emphasizes the need to address increasing climate variability and its effects on food production.

"For example, the unpredictability of extreme weather events and shifting climate patterns create significant challenges for crop production and supply chains," Monaco said. "The development cycles for climate-resistant varieties often span years, which delays adaptation and increases vulnerability."

Another critical issue in this category requires a focus on specific climate challenges rather than generalized stress tolerance. "This approach would allow for more targeted solutions that address unique regional and environmental conditions," he said.

The report also prioritizes the efficient use of natural resources such as water, soil and energy. Practices that improve resource efficiency while reducing greenhouse gas emissions are much needed. Examples include adopting precision agriculture technologies and integrating renewable energy.

"These strategies can simultaneously lower production costs and reduce environmental impact," Monaco said. "The need for enhanced, data-driven resource management is another recurring theme. Improved tools for monitoring and optimizing water and energy use are key to achieving both operational efficiency and environmental goals."

The report further stresses the importance of building a data-driven, decision-making culture across the agrifood value chain. Digital platforms and tools are essential for collecting, analyzing and applying data to enhance sustainability.

Real-time data on soil health, crop conditions and weather patterns can empower farms to make more informed decisions, optimize resource use and improve resilience. "This theme underscores the role of education and training in equipping stakeholders with the skills needed to adopt and implement data-driven practices effectively," Monaco said.

Policy alignment and financial support are critical enablers of climate-smart agriculture, according to the report. For example, incentives could help reward sustainable practices and reduce barriers to their adoption.

Funding mechanisms such as grants, subsidies and public-private partnership are among the tools that could speed the transition to sustainability. Innovative financing models that include carbon credits and sustainability-linked loans could further align economic benefits with environmental goals.

Six segments of the agrifood value chain offer the following opportunities, according to the report:

Agricultural input manufacturing— focusing on developing climate-resilient seeds, sustainable fertilizers and renewable energy solutions
Input distribution— advocating for moving distributors away from a product-centric to a comprehensive solution approach for crop resilience
Agricultural production— highlighting how regenerative practices can improve soil health, sequester carbon and enhance biodiversity
Processing and handling— examining opportunities in logistics, waste reduction and tracking sustainability metrics across supply chains
Food manufacturing— encouraging innovation in sustainable product development to meet evolving consumer demands
Support services and products— identifying the role of financial services, software platforms and advisory tools in driving systemic change

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