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September 6, 2024

The Rise of Regenerative Agriculture

It’s a term you hear everywhere these days in the agricultural sector. But what is it really?

Regenerative Agriculture

Definition: a climate-friendly approach to farming that focuses on restoring and enhancing the health of ecosystems while producing food and other agricultural products. It aims to work with nature rather than against it, promoting soil health, biodiversity, water conservation, and carbon sequestration.

Sounds nice. But to truly achieve this on a wider scale, there is an investment gap that must be filled. In 2019, the Croatan Institute quantified this fact. They released a report that found investable strategies identified in sustainable food and agriculture total $321.1 billion. Of these combined assets, less than 15 percent were identified as regenerative agriculture initiatives.

Pie chart illustrating the rise of 127 investable strategies with $321.1B in assets in sustainable food and agriculture, including regenerative agriculture, divided by asset categories like public equity, private equity, and more.
Rise of regenerative agriculture depicted in a pie chart: 70 strategies amassing $47.5B in assets. Categories include Cash, Public Equity, Debt, Private Equity, and Farmland/Real Assets, each varying in count and asset value.

Climate-friendly agricultural practices could mitigate nearly 170 GtCO2e, while generating a nearly $10 trillion net financial return. (Source: Croatan Institute Report)

Long Story Short

Not only is regenerative agriculture an environmentally responsible investment, but investments in these practices are still in their early stages and represent a rapidly emerging market.

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