How do we turn regenerative agriculture into a viable business case?

Regenerative agriculture, also known as nature-inclusive agriculture, refers to farming practices that restore the soil rather than deplete it. Whatever name you use, this form of farming is still in its early stages in the Netherlands. What needs to happen to establish this type of agriculture successfully? And what role does financing play in this transition?

Transitioning

According to Maarten van Dam, an impact investor and partner at PYMWYMIC (Put Your Money Where Your Meaning Is Community), every farmer can transition from traditional to regenerative agriculture. He also runs his own regenerative farm. "Regenerative agriculture focuses on restoring the soil and biodiversity. If done well, it can also be more profitable."

However, this transition doesn't happen overnight. Brad Vanstone, the founder of Willicroft, describes it as a long-term process. His company produces plant-based cheese from beans and legumes. Vanstone says, "It can take five to seven years for the soil to regenerate fully. Only then will you truly notice the difference. We prefer to source beans from regenerative farmers for our cheese alternative. It's more sustainable and enhances the flavor. However, not all the farmers we source from have reached that stage yet. It's truly a journey."

Investing

Impact investor Van Dam knows that this journey can be accelerated with the right financing. "However, in practice, people tend to wait until something has truly proven itself before more investors jump on board." Nevertheless, the investment climate has changed compared to three years ago. Van Dam says, "Investing in a good cause is gradually becoming more popular."

Collaboration

Despite progress, there are still plenty of opportunities. Diederik Greeve, at Invest-NL, aims to foster more collaboration within the food chain. He invests in companies that accelerate the transition to regenerative agriculture. "By spreading the risk and making it less daunting for each party involved. Sometimes, the step is too big for a single entrepreneur or organization. When you collaborate, so much more becomes possible."

Ingrid Jonkers agrees with this perspective. With The Seaweed Company, she produces biostimulants from seaweed that farmers can use on their land, reducing the need for pesticides and synthetic fertilizers. Jonkers says, "One company can help another, just as The Seaweed Company can assist farmers in their journey towards more sustainable agriculture. Growers, investors, and buyers - all parties must collaborate to establish a solid business model for regenerative agriculture."