Sowing the seeds for regenerative agriculture

Within 50 years there may not be enough soil left to grow enough food to feed the world.¹ More than half of the world’s agricultural land has already degraded² and we are rapidly losing capacity to farm.

How can companies and individuals address these shocking statistics? In collaboration with Gail Gallie, Rothschild & Co was proud to host a Sustainability Sphere with landowners, investors, farmers, tech entrepreneurs and industry experts to focus on how regenerative agriculture can both enhance long-term resilience within our food supply chain and mitigate the carbon emissions released by the industry.

Gail co-founded Project Everyone in 2014, acting as a key architect in developing the UN Sustainable Goals campaign and working with businesses to orient their purpose around the goals. Gail also co-founded NATURE2, a movement working to build and scale systems that urgently drive investment into preserving and regenerating nature.

The key takeaways from our discussions are presented below. But first, can you identify which of these phrases below relating to regenerative agriculture are real?

• Intercropping
• Mob grazing
• Vertical farming
  
  

Read on to find out.

A starting point for nature-based solutions

There are more soil microorganisms living in a teaspoon of healthy soil than there are people on earth,³ yet conventional agriculture places little value on its importance. In the pursuit of maximising yields, harmful practices such as monocropping weaken the soil, leaving it unable to support healthy plant growth. Farmers turn to chemical fertilisers to encourage growth in weak soil, which in turn further destroys the quality.

Being aware of the power of the soil, how can we work with nature rather than against it? In optimal conditions, it can take up to 400 years to form 1cm⁴ of new soil so to protect our natural capital, we must focus on nurturing and restoring our soil health now. There are a broad range of updated farming techniques available such as ‘no till’ farming, which focuses on eliminating disturbance from ploughing (which releases carbon) and ‘intercropping’, the practice of growing two or more plant species simultaneously in the same field.

In some cases, the environment itself is encouraging us to improve our soil health. Black-grass – the costliest weed for UK arable farmers – reached epidemic levels in 2014.⁵ The weed, which can deplete yields by up to 70%, is herbicide resistant, so farmers are increasingly turning to alternative solutions such as crop rotation. This is both an important method to interrupt life cycles of black-grass and can also help maintain a balanced soil profile as different crops have varying nutrient requirements.

Another solution which highlights how improving soil health has wide ranging benefits, not just for the farm, is the use of biochar. This is a carbon-rich soil nutrient, enhancing the quality and structure of the soil, which transforms carbon from certain biomasses into stable carbon sequestration thereby removing carbon dioxide from the atmosphere both immediately and over the long term.

A key discussion raised at the event was the importance of measuring soil health to set a baseline, track performance and set objectives to improve. The ability to gather data with integrity, for example through a formal accreditation process, would help create a valuation mechanism with which we could price the concept of healthy natural capital.

Alongside soil tests and observations, biological assessments are another example which can help farmers track improvements. Earthworms are the engineers of soil, acting as a biological indicator of its health. Regular worm counts can help monitor soil health with the UK’s Agriculture and Horticulture Development Board producing a soil health scorecard.

Cultivating awareness

One of the most significant barriers to the success of regenerative agriculture is knowledge. Farmers might not be aware of various practices available, whilst consumers may feel they don’t have sufficient information to make better decisions in store. To bridge this gap, we should encourage a positive narrative focused on highlighting the fact the problem is fixable – but requires action now.

Positive case studies can help us all understand the value of resilient nature. One attendee mentioned an innovative process from CCm Technologies which converts either waste or a flow of CO2 from a cement or electricity plant into tailor-made fertiliser – making the process carbon negative.

These fertilisers can be fine-tuned for a particular farm’s requirements, enhancing the benefits for the farm as well as the natural environment.

‘Vertical farming’ offers a solution to optimise farm space whilst leaving as much land as possible for the environment, complementing traditional methods. High-value crops (e.g. fruits and vegetables) are grown under optimal conditions, removing the risk of uncertainty from the weather, and reducing the use of water in the production process. Technical expertise to implement such strategies will also reduce the barrier to engagement.

As we mapped out both problems and solutions within regenerative agriculture, we identified a number of common catalysts which would support growth alongside, rather than against, nature.

Corporate ambition

Pledges from large multinational companies committing to purchasing regenerative products helps spread consumer awareness. Nestlé, for example, is aiming for 50% of its key ingredients to be sourced from farmers adopting regenerative agricultural practices by the same deadline.⁷ Commitments such as these demonstrate how the private sector can help shift the mindsets of the industry and accelerate adoption. This is embodied by groups such as the Sustainable Markets Initiative’s Agribusiness Task Force.

Corporates can also lead the way in direct investment to help accelerate the transition.

In 2020 Unilever launched a Climate & Nature Fund, committed to investing €1 billion⁸ into climate, nature and resource efficiency projects with €300 million spent and committed to the end of 2023. Earlier this year it launched the first project in the UK, working with farms which grow mustard seeds and mint leaves used in Colman’s products.

Education

A more engaged consumer will encourage farmers to prioritise the shift to regenerative practices. Industry groups such as the Agriculture and Horticulture Development Board are aiming to focus on engagement through demonstrations and educational campaigns. The LEAF (Linking Environment And Farming) charity has a similar successful campaign known as Open Farm Sunday which helps raise awareness through first-hand experiences.

Our team recently attended the Farm Progress Show in Illinois, where attendees mentioned Clarkson’s Farm. The reach of the show to the US highlights the power television and social media can have in capturing people’s imagination and bringing consumers along the regenerative journey too.

Whilst organic food cannot match the low cost of ultra-processed alternatives, its health benefits are priceless. The UK consumes more ultra-processed foods than anywhere else in Europe.⁹ If instead we consumed food of higher nutritional quality, this could help alleviate chronic conditions ultimately reducing pressure on our health services. Initiatives such as NATURE2 are imperative in these efforts. If consumers not only associate regenerative agriculture with fresher and higher-quality produce, but also broader environmental benefits, this could accelerate wider adoption.

Thank you

Rothschild & Co would like to thank the following people for attending the event and contributing to the report: Addy Windsor-Clive of Regenerate, Andrew Wilkinson of Gilchester Organics, Bill Rossiter of Belmont Estate, Tamsin Rossiter of Belmont Estate, Dave Gasca of Blenheim Palace, Dominique Kun, Erik Bruun Bindslev of Merika, Gil Martin of Belmont Estate, Helen Crowley of Pollination, Henry Rossiter of Belmont Estate, Ingrid Kukuljan of Federated Hermes, James Knight of Climate VC, James Lloyd Jones of Jones Food Company, John Shropshire of G’s Fresh, Julian Marks of Barfoots, Karen Day of Gentian, Max Gottschalk of Vedra Partners, Mike Dickson of Our Generous Gene, Pawel Kisielewski of CCm Technologies, Rhod Needham of Halo Impact, Samuel Gill of Sylvera Carbon and Sarah Megahed of Nuveen.

Citations

[1] Why Regenerative Agriculture?, Regeneration International
[2] Why empowering 100 million farmers to transform food systems matters, World Economic Forum, 23 September 2021
[3] Regenerative Agriculture, High Weald National Landscape
[4] Soil: the foundation of life on Earth, John Innes Centre
[5] Breaking the bane of black-grass, Rothamsted Research
[6] The Case for Regenerative Agriculture in Germany – and Beyond, BCG, 23 January 2023
[7] Regenerative agriculture, Nestlé
[8] Unilever Climate & Nature Fund, Unilever
[9] Ultra-processed foods, Soil Association

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