Regenerative farming to improve both impact on our planet & your long-term profit

A guide to regenerative farming to accelerate your climate reduction plan to 2030 (1/3)

Introduction of the farming systems, climate impact and finances

We’ll start by exploring different farming principles and global impact, before diving into the benefits and challenges of regenerative agriculture.

Global distribution of farming practices

• Industrial/Conventional Farming: Dominates global agriculture, using 75-80% of the world's agricultural land.
• Organic Farming: Accounts for about 1.5-2% of global agricultural land, with higher percentages in Europe and Oceania.
• Regenerative Farming: Represents less than 1% globally, but is gaining traction, particularly in North America and Europe.

Global emissions: Industrial vs. organic and regenerative farming

Industrial farming emissions

‍Industrial farming is responsible for approximately 10-15% of global greenhouse gas emissions, translating to roughly 5-6 gigatons of CO2 equivalent annually. The main contributors are:

• Synthetic Fertilisers: Significant source of nitrous oxide (N2O), a potent greenhouse gas.
• Monoculture Practices: Lead to soil degradation and increased carbon release.
• Heavy Machinery: High fossil fuel use for planting, harvesting, and transport.
• Deforestation: Land clearing for large-scale farming, especially in tropical regions, leads to substantial CO2 emissions.

Organic farming emissions

Organic farming generally emits 20-30% less GHGs compared to industrial farming due to the avoidance of synthetic inputs and better soil health management, translating to approximately 3-4 gigatons of CO2 equivalent annually.

Regenerative farming emissions

Regenerative farming can sequester more carbon than it emits, potentially making it carbon-negative. If expanded, it could offset up to 5-20 gigatons of CO2 by 2030, depending on adoption rates and practices.

What is regenerative farming?

Regenerative farming and agriculture represent a holistic approach to farming that aims to improve soil health, enhance biodiversity, and reduce GHG emissions. This white paper explores the principles of regenerative farming and its benefits from a climate, people, and cost/efficiency perspective, with an emphasis on circularity and biodiversity gains.

Agriculture has always been at the heart of human civilisation, providing the food and resources necessary for societies to thrive. However, modern agricultural practices have often prioritised short-term productivity over long-term sustainability. This has led to significant environmental challenges, including soil degradation, loss of biodiversity, and increased GHG emissions.

The value opportunity for transformation to regenerative agriculture

Climate-smart and regenerative agriculture measures designed to put farmers at the centre can improve crop yields and turn farmland and pastures into carbon sinks, reverse forest loss, optimise the use of nitrogen-based fertilisers and rethink global and local supply chains to be more sustainable, reducing waste.

Through natural climate solutions (NCS), food systems can contribute up to 37% of climate mitigation needed to reach 2030 climate goals. Yet, less than 2% of climate finance is directed to agri-food solutions. In the EU, a new Forum report on farmer-first climate strategies found that greenhouse gas (GHG) emissions could be lowered immediately by 6% a year if just one-fifth of EU farmers were supported to transition to net zero, boosting soil health and incomes by €2-9 billion

Benefits versus conventional farming

Conventional farming practices, such as monocropping (the agricultural practice of growing a single crop year after year on the same land), heavy use of synthetic fertilisers and pesticides, and intensive tillage (the agricultural preparation of soil by mechanical agitation of various types, such as digging, stirring, and overturning), have contributed to the depletion of soil health and the disruption of natural ecosystems. These practices have made farming more vulnerable to climate change impacts, such as extreme weather events, pests, and diseases.

Regenerative farming offers a transformative solution. By focusing on restoring and enhancing natural ecosystems, regenerative agriculture aims to create a resilient, sustainable, and productive farming system. This approach emphasises soil health, biodiversity, and circularity while recycling resources within the farm to reduce waste and reliance on external inputs.

Key principles of regenerative agriculture include:

Soil Health Improvement: Farming with the purpose of boosting soil organic carbon levels can sequester significant amounts of carbon, with estimates suggesting that global adoption could sequester up to 23.2 gigatons of carbon dioxide annually. Practices like minimal or no tillage, cover cropping, and organic amendments improve soil structure, increase organic matter content, and enhance microbial activity. Arable soils have lost 40-60% of their organic carbon due to conventional practices, but regenerative methods aim to restore this.

Biodiversity Enhancement: Another critical aspect of regenerative farming is the enhancement of biodiversity. By promoting diverse crop rotations and integrating livestock, regenerative farming supports a balanced ecosystem, which reduces dependency on chemical inputs and improves natural pest and weed control. For instance, farms practising regenerative agriculture often see a 20-30% increase in species richness compared to conventional systems. This diversity helps to maintain soil fertility and ecosystem resilience, contributing to long-term sustainability.

Circularity and Waste Reduction: Circularity and waste reduction are key components of regenerative farming. By recycling resources within the farm, such as using animal manure as fertiliser and crop residues as mulch, regenerative practices minimise waste and reduce reliance on external inputs. This approach not only cuts down on costs but also promotes a closed-loop system that enhances soil fertility and reduces environmental impact. For example, farms implementing regenerative principles have reported a 50-70% reduction in synthetic fertiliser use.

Water Management: Effective water management is another significant benefit of regenerative farming. Practices such as cover cropping, maintaining living roots year-round, and mulching improve soil structure and water infiltration, reducing runoff and erosion. These methods can increase the soil’s water-holding capacity by up to 30%, which is crucial in mitigating the impacts of droughts and reducing the need for irrigation. As a result, farms practising regenerative agriculture can achieve better water efficiency and resilience to extreme weather events.

Economic, Environmental and Social Benefits: Economically, regenerative farming can be highly viable. While yields in regenerative systems can be 20-30% lower than in conventional systems, the reduction in input costs (fertilisers, pesticides, and fuel) often leads to higher overall profitability. For instance, a study on US corn production found regenerative fields had 78% higher profits despite 29% lower grain production due to significant input savings. Environmentally, regenerative practices contribute to carbon sequestration, biodiversity enhancement, and improved water and soil health. Socially, regenerative agriculture fosters community resilience, promotes local food systems, and supports farmer livelihoods by reducing dependency on volatile input markets.

Summary for climate actions and collaboration

Here’s a summary guide to help you succeed in transitioning back to traditional, regenerative farming. This step-by-step approach is designed for collaboration between producers, farmers, and their suppliers to reduce emissions, lower costs, and improve soil health and land use:

1. Focus on soil health first

• Investment Needed: €28-€140 per hectare.
• Actions:
  • No-Till Farming: Invest in reduced tillage equipment.
  • Cover Crops: Purchase seeds for cover crops like clover or rye to plant in off-seasons.
  • Organic Mulches: Use organic mulches like straw to cover the soil.
• Impact: Reduces soil erosion, boosts soil organic matter by 0.32 tons per acre annually, and increases water retention by 20-30%.

2. Diversify crop rotations

• Investment Needed: €0-€50 per hectare (minimal cost increase).
• Actions:
  • Crop Rotation: Start rotating different crops on the same land to break pest cycles and enhance soil fertility.
  • Integrate Livestock: If possible, add livestock to graze on cover crops, which naturally fertilises the soil.
• Impact: Increases yield by 20% and reduces pesticide use by up to 50%.

3. Water management upgrades

• Investment Needed: €90-€180 per hectare.
• Actions:
  • Drip Irrigation: Install drip irrigation systems to deliver water directly to roots.
  • Rainwater Harvesting: Set up systems to collect and store rainwater for irrigation.
• Impact: Reduces water use by up to 50% and increases crop yields by 30%.

4. Implement circular waste management

• Investment Needed: €50-€100 per hectar
• ‍Actions:‍
  • Composting: Convert farm waste into compost to enrich the soil.‍
  • Manure Management: Use anaerobic digestion to turn manure into biogas and fertiliser.‍
  • ‍Impact: Reduce waste & costs

5. Invest in digital tools for monitoring

• Investment Needed: €10 000-€50,000/month for digital tools. (can start from very little, but depending on system and AI integrations or not it varies a lot)
• Actions:
  • Data Collection: Use digital platforms to track soil health, crop yields, and water usage.
  • Real-Time Adjustments: Monitor and adjust practices based on live data integrate it to long-term targets.
• Impact: Ensures transparency, speeds up decision-making, and improves overall efficiency.

Start Here:

1. Begin with soil health improvements and water management, as they deliver the most immediate benefits.
2. Gradually diversify crops and integrate livestock for long-term sustainability.
3. Use digital tools to monitor progress and make real-time adjustments.

This step-by-step investment plan ensures a cost-effective, data-driven approach to transitioning into regenerative farming.

Connect with Unibloom for a demo and learn more?

Curios to learn how you can simulate your scenarios for an financially viable and optimal climate pathway and get all cross-functional teams to collaborate towards most important switches?

Ping us for a demo and chat! calendly.com/anna-sandgren or reach out to Jegak Seo or vladi.boroday@unibloom.world, who are part of the LCA & Simulation team.

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