Hoe om herlewingslandbou te laat leef

Headline: How to make regenerative agriculture thrive

One message came through clearly at the Nedbank media event at the recent NAMPO Kaap: If we want regenerative agriculture to move from limited adoption to widespread implementation, the conversation will have to change.

The transition from conventional to regenerative agriculture is essentially a business decision. It requires new equipment and inputs, new skills and different ways of farming. In some cases, yields may initially decline before the benefits of healthier soil, lower input costs and greater resilience begin to materialise.

For a farmer who has to manage the effects of weather conditions, input prices, interest rates and market pressure every day, that initial uncertainty makes a big difference. So, if the agricultural sector is serious about regenerative agriculture, we need to ask a different question: How can we help farmers make the transition successfully?

The benefits are there

Regenerative agriculture offers many benefits to farmers, but its value varies from farm to farm and depends on the unique circumstances of each farming operation.

The first benefit is market access. Consumers increasingly want to know where their food comes from and how it is produced. At the same time, retailers and other participants in the value chain are paying ever closer attention to the environmental impact of their supply chains. Farmers who can demonstrate that they follow responsible farming practices are likely to have better access to markets and new opportunities.

The second benefit is lower input costs. When farmers rely less on fertiliser, pesticides, fuel and other external inputs, this can help reduce costs over time. This does not mean expenses will fall significantly overnight, but it does create the possibility of more efficient and resilient production systems.

The third benefit is a possible additional source of income. When regenerative practices help reduce carbon emissions or remove carbon from the atmosphere, farmers may be able to earn money from carbon markets. The process does require reliable data and certification, and it may take a few years before farmers receive their first payment. Even so, it is an opportunity worth exploring.

Lastly, there is resilience. Farming is increasingly affected by changing weather conditions. Practices that keep soil healthy and make better use of water help farmers cope more effectively with challenges such as droughts and other climate-related risks.

These benefits are significant, but they do not necessarily arrive at the same time as the costs of transition. Farmers often have to bear the cost of change before they reap the rewards.

The transition does not rest on farmers’ shoulders alone

This is where the so-called J-curve of the transition becomes important. The costs and risks usually come first, with the benefits following much later. A farmer may introduce new practices today and even experience lower yields for a while. The benefits, such as lower input costs, greater resilience, new market opportunities and additional income, often only follow later.

If farmers have to bear all the initial risks alone, fewer of them will make the transition. That is why support from across the entire value chain is so important.

The transition to regenerative agriculture does not happen overnight. It takes time, targeted investment and a good understanding of the unique circumstances of each farm. Farmers must also take the potential short-term impact on cash flow and yields into account. Nedbank offers financial solutions that help farmers manage the transition successfully and build stronger farms for the future.

Retailers and other market players can support farmers with advice, technical support and better market access. They can also reduce the risk of the transition by agreeing in advance to purchase certain volumes of produce. This gives farmers greater certainty about future demand as they begin to adopt new regenerative practices.

Technology and input suppliers also have an important role to play. They can help farmers make better sense of information about their soil, rainfall and farming systems. They can also identify the right products and practices to best suit each farm’s transition.

Government and industry bodies must also work together to make it easier for farmers to get the support they need.

Good data is the foundation of progress

One of the key messages from the discussion was that good data plays a crucial role in the success of regenerative agriculture. Reliable data is essential for accessing carbon markets, because claims about carbon must be supported by credible evidence. But its value extends much further.

Good data helps farmers determine whether new practices are delivering the desired results. It also helps financiers and retailers understand farms better and assess progress with greater confidence. What’s more, it helps farmers make informed decisions about where to invest their time, money and resources.

So it is not just about proving that a farming operation is sustainable. It also helps farmers understand their business better, encourage investment and make it fit for the future.

Regenerative agriculture is a shared responsibility

Regenerative agriculture can protect farms against future challenges and make them more sustainable. But if we want more farmers to make the transition, the responsibility cannot rest with them alone. The future of regenerative agriculture depends on the support and cooperation of the entire value chain.

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Translated from the Afrikaans by AI. The Afrikaans article is the original.