Agricultural lending to reward environmental performance.
Through modeling the effects of lending behavior on groundwater supplies and economic productivity, our team of master's students at the Bren School of Environmental Science and Management seeks to uncover how a pay-for-performance incentive will affect agricultural sustainability in the Salinas Valley.
SustainabilityAchieving environmental performance goals through financial incentives and lending support.
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Social EquityInvesting in our communities to ensure water supplies for current and future populations.
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SGMAMeeting groundwater management standards in California with efficient agricultural practices.
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Deliverables.
A survey of agricultural lenders.
Our team conducted a survey of agricultural lenders to better understand how regional natural resource issues are considered in agricultural risk-assessment analysis.
A model of economic and environmental impacts.
We built a financial model to determine the most profitable loan products, and then calculated the water and nitrogen fertilizer savings as a result of program success.