A new report finds farmers in Europe making a profitable transition to regenerative agriculture. Farmers, agronomists and food buyers can help take this transition to the next level.
For decades, the world food system has been oriented to feeding the world as cheaply as possible, and it has produced an abundance of calories. But it is in danger of eroding the foundations of farming, including the resilience of natural systems and the vitality of the soil itself.
The cost of soil degradation across the European Union is estimated at €97 billion per year. Two-thirds of this is a cost to human health. There is growing understanding that farmers and food companies need to change this, but it can be hard to know where to start.
“Regenerating Europe’s soils: making the economics work” presents a business approach to scaling up regenerative agriculture. It shows how, by implementing practices progressively, farms can improve the economics of their businesses throughout the transition to regenerative practices. They can achieve greater yield stability, improved profitability and greater resilience, while also reducing greenhouse gas emissions.
Rather than presenting a universal formula, the report visits two contrasting hotspots – the orange-growing region of Valencia and the wheatfields of the Marne in northern France – as a testing ground for its approach.
It finds farmers using fewer agrochemicals, disturbing the soil less, and valuing biodiversity more. Regenerative methods also imply a different way of thinking; where it has long been believed that ‘a good farm is a clean farm’, maintaining permanent soil cover goes against this grain. Independent advice and better links to food buyers can maximise one of agriculture’s strengths: a tradition of sharing knowledge and experience.
The report shows that, even without extra subsidies, regenerative agriculture can be a more profitable option, and that a transition to soil-friendly practices can work without multiple years of investment and operational losses. Farmers are best placed to lead the transition and inspire others, especially when given access to insight from agronomist advisors and peers.
But to do this, their business energy and practical skills must be redirected and supported. New economic signals must also shift the social norms that are such a strong cause of today’s inertia. This is where the role of food buyers, policymakers and other market makers becomes so important.
Read the report here. And find out more about Karl’s experience of researching regenerative agriculture in his OECD blog.
From co-authors Martin Stuchtey, Rupert Simons, Lauren Boutillier and Karl Fletcher.
