Why should investors care about Regenerative Agriculture?

June 11, 2019 2:48 pm

It can be easy to think that regenerative agriculture is the latest buzz word in an attempt to attract capital and consumer dollars, but this comes with a warning, it is not to be ignored.

Regenerative agriculture is a farming approach that contributes to generating and rebuilding soil health and soil fertility, it increases biodiversity and ecosystem health and resiliency, improves watersheds and the water holding capacity of soil, and sequesters carbon.

There are many benefits to the environment and human society, and it can be more profitable than conventional agriculture systems. As countries globally move towards decarbonising our planet, regenerative agriculture will play a major role in enabling our economies to become carbon neutral.

As interest in regenerative food systems and agricultural value chains grow, an increasing number of investors are beginning to explore high-impact investing opportunities in food and fibre assets.

Based on this, new investors are looking for investments in real assets, they see agriculture as a new asset class to add to their portfolio, a long-term investment.

The impact made through regenerative agriculture that contributes to success includes:

  • Increases in productivity and in profit
  • Alternative revenue streams through natural capital markets
  • Increased market access and branding opportunities
  • Reduced seasonal, commodity and market risk
  • Resilient asset creation

A productive farm will always be worth more, the more productive they are, the more valuable they are.

“The nation that destroys its soil destroys itself.”

– F.D. Roosevelt

An asset under conventional farming, with change management in regenerative practices, can have a real impact for future generations.

The production of food and fibre shouldn’t be at the cost of the environment or the human race globally.  Agriculture in general needs to take the lead on emissions and be on the front foot, we need to be proactive in reviewing our production systems and take action to reduce emissions and sequester more carbon, the rewards will come.

At Impact Ag Partners, we work on delivering great economic results with improved environmental outcomes for the investor and society at large.

Read more How carbon can not only benefit the environment but also increase your bottom line


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