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The Economic (& Environmental & Health) Case for Regenerative Farming & Food

Despite their benefits for soil and ecosystem health, regenerative practices are not going to make a positive dent in the food system long term unless there is a true economic case for farmers and others in the value chain. And there is.

There is science supporting the environmental principles of regenerative farming – keeping living roots to build soil organic matter, enhance water infiltration, and sequester carbon; fostering biodiversity to create a system that can better sustain itself in times of adversity; integrating animals as walking composters to enhance biology and fertility; etc. But the truth is, regenerative practices are not going to make a positive dent in the food system long term unless there is a true economic case for farmers and others in the value chain. And there is.

Here's a (very) simplistic example to frame the logic:

This is the lower-cost economic case. There is another side of the economic case — which involves creating more value-added, higher-margin, less-commoditized products that will, in fact, yield greater revenues per acre (and also increase the ‘Other’ costs such as processing, packaging, etc vs just raw commodity versions of a crop or animal). We’ll talk about the value-added case down the road.

One challenge many conventional farms face is one-time conversion costs and investments — i.e. all the infrastructure they’ve built and the way they’ve managed their farm was built for a conventional business model. This can’t be ignored. There is significant federal funding and private grants available to facilitate some of those costs; but regardless, conventional farming today is a very low (if any)-margin, price-taker business model vs. trying to build a better-margin, price-maker economic model.

Don’t take my word for it

In addition to the growing number of brands that are cultivating regenerative supply chains, there are real-world case studies that actualize the above logic:

  • Maybe the best single source of cases in action is the work of Gabe Brown and the team at Soil Health Academy. They have also released a new documentary, called Common Ground — a sequel to 2020’s Kiss the Ground.

  • The Regen Brands podcast is also chock-full of individual farms / producers / value chain-providers that are proving the viability of regenerative business models — read episode recaps here.


Contributors

Paul Shoemaker

Paul Shoemaker

Paul Shoemaker is a consultant, author, podcaster, speaker and social impact leader. He currently serves as Executive Director of Carnation Farms — a community-based hub for regenerative food and agriculture in Carnation, Washington, that educates and empowers the work of culinary, food and farming professionals.


Linley Dixon

Linley Dixon

Linley Dixon farms certified organic vegetables in Southwest Colorado. In 2018, she began the pilot program for the Real Organic Project certification program — a farmer-led, “add-on” organic certification that highlights farms that foster healthy soils, pastures livestock, and are committed to organic principles across all their agricultural enterprises — and is now Co-Director, with Vermont organic farmer Dave Chapman. Real Organic provides the transparency that is often lacking in the marketplace and educates eaters about farming practices that will provide for a healthy future.


Listen to the Real Organic Podcast

Real Organic podcast cover

Carnation Farms

Carnation Farms logo

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