Scaling up agroforestry: from green agriculture to profitable business model

Agroforestry, an advanced regenerative agricultural practice, can play a significant role in addressing biodiversity loss, climate change, and landscape restoration. Although its potential is enormous, the practice remains small-scale in the Netherlands for now. Only about 500 farmers implement agroforestry on relatively small plots. To further develop this sector, a solid business model is needed that is attractive to financiers.

Agroforestry is an agricultural system in which trees and shrubs are integrated with crops or livestock on the same piece of land. This combines the benefits of natural ecosystems with productive agriculture. It promotes biodiversity, soil quality, water management, and carbon sequestration. At the same time, it can economically support farmers through risk diversification and cost savings.

In a new white paper, Invest-NL presents recommendations to professionalise and make the business models of agroforestry financeable. The research shows that financiers are hesitant due to uncertainties around yields, unclear markets, and long payback periods, which hinder scaling up.

The white paper includes recommendations to address these bottlenecks. This should pave the way for further growth and financing of agroforestry as a viable solution for a regenerative agricultural system.