** AWARDS ISSUED PRIOR TO JANUARY 20, 2025, WERE FUNDED UNDER PREVIOUS ADMINISTRATIONS AND MAY NOT REFLECT THE PRIORITIES AND POLICIES OF THE CURRENT ADMINISTRATION.** THE DESIRE FOR ECONOMIC GROWTH, COUPLED WITH THE DESIRE FOR MITIGATING NEGATIVE ENVIRONMENTAL IMPACT, BRINGS GROWING ATTENTION TO SUSTAINABLE FOOD PRODUCTION IN THE U.S. THE PRIMARY WAY FOR ACHIEVING SUSTAINABILITY IN FOOD PRODUCTION IS ENCOURAGING FARMER ADOPTION OF REGENERATIVE AGRICULTURAL PRACTICES (RAPS), INCLUDING COVER CROPS, NUTRIENT MANAGEMENT, AND CONSERVATION TILLAGE. DESPITE COST-SHARING PROGRAMS OF THE GOVERNMENT, RAP ADOPTION RATES REMAIN STAGNANT. AGRIBUSINESSES ARE STARTING TO DEVELOP STRATEGIES FOR VERTICAL COORDINATION (VC) OF SUSTAINABILITY EFFORTS ALONG THE FOOD SUPPLY CHAIN. VC IS FINANCIALLY SELF-SUSTAINING AND MAY BE MORE EFFICIENT THAN GOVERNMENT PROGRAMS IN SHARING COSTS AND RISKS WITH FARMERS VIA NOVEL INCENTIVE PROGRAMS FOR RAP ADOPTION. YET, LITTLE IS KNOWN ABOUT VC STRATEGIES REGARDING THEIR EFFICACY, WELFARE IMPACTS, AND INTERACTIONS WITH EXISTING INCENTIVE PROGRAMS OFFERED BY THE GOVERNMENT. WE AIM TO ADVANCE THE ECONOMIC UNDERSTANDING OF VC-BASED INCENTIVE PROGRAMS OFFERED BY AGRIBUSINESS FIRMS THAT PROMOTE FARMER ADOPTION OF RAPS IN THE U.S. WE WILL (I) CONSTRUCT A NOVEL THEORETICAL MODEL THAT CHARACTERIZES THE INTERACTION BETWEEN THREE KEY AGENTS IN THE ADOPTION OF RAPS: AGRICULTURAL PRODUCERS OR FARMERS, FOOD PROCESSORS AND RETAILERS, AND CONSUMERS, (II) CALIBRATE THE THEORETICAL MODEL USING GOVERNMENT STATISTICS, FIELD EXPERIMENTAL DATA, AND SURVEY DATA, (III) DERIVE OPTIMAL VC STRATEGIES TO ENHANCE THE SUSTAINABILITY OF U.S. AGRICULTURAL PRODUCTION, AND (IV) OPTIMIZE VC STRATEGIES TO IMPROVE SOCIAL WELFARE GIVEN EXISTING GOVERNMENT INCENTIVE PROGRAMS. OUR STUDY WILL HELP OPTIMIZE THE DESIGN OF VC STRATEGIES IN IMPROVING THE ENVIRONMENTAL AND ECONOMIC SUSTAINABILITY OF U.S. AGRICULTURAL PRODUCTION AND ENHANCING SOCIAL WELFARE.